narrowcasting hype or serious business

8/6/2019 Narrowcasting Hype or Serious Business

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Strategic Account Manager NL-BE

Some images are representative andare not of the actual deployment.

Ton van Hout


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Worlds first connected signagecompany

20+ years of experience in digital

signage and advertisingmanagement industry

Turnkey media managementsolutions

Cutting-edge technology

Strong partnerships

Scala at a Glance


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Introduction Fields of usage Challenges

Financial Future development Innovative usage examples Conclusion

Agenda


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Who believes narrowcasting is a hype?

Who is using narrowcasting at this

moment?

Who is thinking about implementingnarrowcasting within one year?

Questions to the audience


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Introduction


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A network of digital displays that are centrally managed and

addressable to deliver information in a specific location, to

a specific audience at a specific moment.

Narrowcasting | Definition

Is narrowcasting a young term?

NO, it was first used by Joseph Licklider,a scientist of the MIT in the USA in 1968


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Narrowcasting, also known as:

Narrowcasting | Synonym

dynamic signage

digital signs

digital signage

digital media advertising

in-store TV network

captive audience network

out-of-home media network

digital media network

advertising network


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Narrowcasting | Hype?


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Fields of usage


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Entertainment Internal information Advertising Brand Messaging/Marketing

Way finding Enhancing customer experience Enhancing the environment

Narrowcasting | Fields of usage


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Fields of usage (%)

More options per network possibleSource: Digital Signage today March 2009

66,3

54,3

22,8

21,7

16,3

13

0 10 20 30 40 50 60 70

brand messaging/marketing

Product information

Third party advertising

Digital menu boards

wayfinding

entertainment channel


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Source: Digital Signage today March 2009

31,1

33,9

14,3

5,3

4,5

10,8

24,9

36,9

11

10,8

8,4

8,4

0 5 10 15 20 25 30 35 40

Assisted selling / product information

Brand messaging/marketing

Third-party advertising

Entertainment channel

Wayfinding

Digital menu boards

customer acceptance / appreciation succesfull to deploying business


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Source Retailtrends, september 2008

5634 retail locations have narrowcasting installed Most popular usage for sales triggers and image building

Narrowcasting installations are still growing, althoughslowly 80% of the interviewed retailers are using narrowcasting Spectacular growth in Supermarkets

Narrowcasting in Retail, The Netherlands


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Installations at Belgium known brandsin The Netherlands

Source: Retailtrends | September 2008

10151616232526283435

4550

6067

90114

123170

200277

399

600

0 100 200 300 400 500 600 700

Cool CatMercedes

MakroThe Sting

Bjorn BorgAudi

Media MarktKFC

Free Record ShopMazda

T-MobileFoot LockerAlbert Heijn

SuzukiVodafone

C&ATotal

ABN-AMROMcDonalds

ShellPostkantoren

Rabobank


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Challenges


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Challenges (%)

Source: POPAI Digital Signage Desktop Reference Guide: The Global Study. Opportunities and Risks.Published by: GIM Gesellschaft fuer innovative Marktforschung

41

39

13

16

14

13

55

33

36

50

6

0 10 20 30 40 50 60

availability of contens

Management of contents

Signal distribution

DS software compatibility

"last mile" transmission

displays

concepts

long term project management

accompaniement through research and measuresfor optimization

financing

other


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Challenges | content

CONTENT IS KING!

Dynamical content has more impact To the point and short Use automated changes where possible Use intelligent contentmanagement system


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Sources of failure (%)


61

17

34

23

59

16

0 10 20 30 40 50 60 70

financing

technical complexity

availability of contents

operative complexity

lack of concept

other


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Financial


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Time to breakeven (%)


19

13

19

26

18

5

0 5 10 15 20 25 30

< 3 months

3-6 months

6-12 months

12-24 months

24-36 months

> 36 months


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Sources of funding (budget) (%)


54

20

26

39

40

16

50

19

50

38

38

6

65

8

27

22

22

0

0 10 20 30 40 50 60 70

advertisement marketing / sales of airtime

renting out installed screens

trade marketing

brand marketing

special budgets

other

advertisers customers providers


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Sources of funding (financier) (%)


58

61

20

4

73

40

13

0

64

32

25

5

0 10 20 30 40 50 60 70 80

company managing the project

customers (retail)

external investors

other

advertisers customers providers


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Off to Narrowcasting 2.0


Further development


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Money talks

The end of Passivemedia

Informationoverload

The technology windowhas opened

Key market drivers


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Technology Adoption Life Cycle

TechnologyEnthusiasts

Visionaries

Pragmatists Conservatives

Skeptics


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Most probable development of DS (%)

84

11

31

57

12

60

33

0 10 20 30 40 50 60 70 80 90

generally accepted

remain confined to few sectors as nichesolution

nice solution for certain communication tasks

will replace poster, POP radio, shelf promotion

will replace TV, print, radio, internet

will compete with tv, print, radio, internet

will become the key medium



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Technology to impact NC in coming 5 Y (%)

Source: Digital Signage today March 2009

4,8

5,4

13,9

15,9

22,4

37,7

0 5 10 15 20 25 30 35 40

Social networking

Biometrics

RFID

user generated content

aggregate for media buyers

Mobile phones/SMS


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Innovative usage

examples


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TENQ Watercooler project

Source: http://www.tenq.tv , Stichting Waterwijs

Installation in schools To promote drinking of water

350 units installed and growing School gets unit for free Normal tap water

costs liter water EUR 0,10 part goes to charity

Connected to http://www.tenq.tvfor media uploads
http://www.tenq.tv/http://www.tenq.tv/http://www.tenq.tv/http://www.tenq.tv/


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TENQ Watercooler project

Source: http://www.tenq.tv , Stichting waterwijs

67% looks regularly at TENQ

37% looks daily at TENQ 30% looks 1 or more times a

week at TENQ

Average viewing time is 2 minutes
http://www.tenq.tv/http://www.tenq.tv/


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Age verification and narrowcasting

Source: QYN/KPN and partners, http://www.qyn.nl , The Netherlands

Selling cigarettes and liquor to people < 16 is illegal People at the counter are often young

Ability to estimating age requires persons of 20 years up Retailer can loose its license while selling un allowed

While system not in use for age verification, it can be usedas narrowcasting screen or product selector/advisor
http://www.qyn.nl/http://www.qyn.nl/


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Age verification and narrowcasting

Source: QYN/KPN and partners, http://www.qyn.nl , The Netherlands
http://www.qyn.nl/http://www.qyn.nl/


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Narrowcasting IS serious business Narrowcasting concepts are still in development Narrowcasting will be more targeted (narrowcasting 2.0)

More research on actual effects is necessary New measurement techniques will give more accurate

information

Narrowcasting has to be a part of the totalcommunication/marketing mix

Look further than the advertising screen in the shop!

Conclusion


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Questions


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Contact information:

Ton van HoutStrategic Account Manager NL-BE

[email protected]

http://www.scala.com
mailto:[email protected]:[email protected]

narrowcasting hype or serious business

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