The digital signage market is booming internationally, and South African marketers need to get with the programme in a hurry if they want to capitalise on the vast benefits this medium offers.
TBM - a business leader in the global digital signage arena - currently operates a network of over 1 000 plasma and TV screens across the country, creating a platform for advertisers to share their information with various sections of the population, depending on which audience-specific package is chosen.
Trendsetter in its field, TBM incorporates new technology that provides a basis for revolutionary new communication strategies. Advertisers can now create high-impact campaigns and deliver them virtually instantly via satellite to any of these screens across South Africa. Advertising screens within the TBM network include those at Johannesburg, Cape Town and Durban International Airports, airport lounges at these three airports, Absa banks, American Express, Rennies Bank, Virgin Active, golf clubs, advertising agencies and the Johannesburg Metro Police Department.
TBM also operates “private” television stations for government, NGOs and corporate clients, which can be used for various applications including marketing and promotions, staff training, brand building, product/service information, company communication, promotions, competitive advantage, social responsibility, sponsor extensions and strategic alliances.
In addition, TBM also delivers DVD quality full-motion content to plasma screens located within closed networks, acting as a telecommunications service provider for institutions requiring information distribution to both staff and clients. These are known as hybrid networks, and TBM currently operates such a network for Cell C in over 90 retail centres across the country. By the end of 2006, this figure will have grown substantially. During business hours, the network is used for communicating with the clients in Cell C call centres, stores and franchises.
“Currently, South Africa is lagging behind the international market with regards to digital signage,” says Pierre van der Hoven, CEO of TBM. “Marketers need to start realising that Out-of-Home TV is the way of the future - traditional media has become fragmentised, and has lost the power it once commanded.”
Research shows that digital media is four times more effective than conventional television advertising. Significantly, digital media is also seven times more effective than conventional print media, and receive ten times the eye contact of static signage.
“Studies also show that 75% of all purchasing decisions are made in-store at the point of sale, and that 85% of retail customers say that multi-media displays make a difference to where they shop,” van der Hoven points out.
According to recent studies by New York research company Weinstock Media Analysis, who defines digital signage as ’server-based advertising over networked video displays’, technology sales to this market in North America totalled $US972-million in 2003 and will rise to $US2.23-billion in 2008. It is predicted that this region will have over 540 000 screens at more than 76 000 sites by 2009.
In the US, the broadcast network of PRN - the largest TV network in the retail environment - reaches an audience of over 150 million shoppers every week in over 5 500 stores countrywide. It delivers information and entertainment-packed programming in stores where customers spend over US$256-billion every year.
Advertisers in the UK have also cottoned on to this highly effective marketing medium, and over 57 000 networked screens are operational in public venues. This figure has made an astounding leap from only 10 000 in 2004, according to the Samsung Screen Survey of last year. Apart from producing a value-adding experience for mall visitors, screens have also been placed in government buildings, banks, hair salons and student unions.
Three years ago, Tesco TV rolled out 5 000 screens in 100 Tesco stores, which reach 14 million shoppers a week. ASDA, the other major supermarket chain in the UK, has completed a six-month pilot in two of its major stores. Results of the Spar grocery trial were also published in 2005, and showed increased sales of between 10% and 40% for targeted products.
Besides Tesco TV, other success stories in the UK include Toni & Guy TV, with 230 salons in Europe and expanding across Asia; the Bullring Shopping Centre in Birmingham, which provides information through plasma screens and kiosks; Abbey National, a dual network in 800 stores that does brand advertising and staff training; and the Camelot network, which promotes the national lottery in 500 supermarket and sales outlets.
If South Africa is set to follow North American and European trends - and the signs are already beginning to show - then astute marketers will start to place emphasis on extracting the maximum value from ad-spend, with the added benefit of avoiding a ‘blanket’ marketing approach, opting rather for one that is focused and targets specific audiences.
“Digital screens with moving images are much more effective than static point-of-purchase material,” notes van der Hoven.
“Even though advertisers spend millions getting shoppers in stores, more than half of those shoppers leave empty-handed because static advertising is unreliable, invisible and difficult to manage. In fact, the Point of Purchase Advertising Institute (POPAI) estimates that 30% to 40% of all point-of-purchase advertising is wasted as a result of incorrect and non-displays.”
TBM is poised to play a pivotal role in developing this market in South Africa, and is currently the only South African company that provides all the necessary elements for an OHTV network. “We see a boom coming for the digital signage market in this country, and we’re prepared,” says van der Hoven. “Marketers should be too.”