A Fight For Eyeballs

The birth of a revolutionary new mobile ecosystem only three years ago radically changed the way individuals engaged with technology, with one another and the world around them.

Shortly after the genesis of this new ecosystem, industry analyst began forecasting, as measured by smartphone penetration, rapid growth and adoption. Actual growth, however, has far surpassed even the most optimistic projections of only two years ago. This can be seen in the above graphic.

The power of this new ecosystem is infusing fundamental change in long-established industries. This can be seen in the following examples:

• Retail: Consumers are now using mobile ecosystem to change the shopping experience, make more intelligent purchase decisions and save money. No longer is the retailer in full control of what happens inside the walls of their stores. Consumers are now leveraging the mobile ecosystem to get competitive pricing, check product features, access promotions and even purchase competitive products – all from within a retailers’ store. In fact, the latest numbers from PayPal indicate that mobile-enabled Holiday shopping up 516 percent over the prior year.

• Entertainment: Consumers are drifting away from traditional entertainment platforms in favor of mobile. Television manufactures are seeing a decline in TV sales growth – despite a continual reduction in retail prices – as video content is increasingly being consumed via mobile technologies. The same thing is occurring in gaming. The sales growth of game consoles is declining as consumers are doing more gaming on mobile devices. Audio content, which has long been moving away from CD’s, is increasingly being distributed and consumed via the mobile ecosystem.

• News and Information: Consumers are moving away from traditional print media in favor of content delivered via the mobile ecosystem. Centuries old industries are tittering on oblivion as consumers migrate from physical books, magazines and newspapers towards electronic media that is delivered and consumed via the mobile ecosystem.

• Healthcare: Consumers are using the new mobile ecosystem to help manage and monitor their health. Consumers are using the ecosystem to control their diets, track their physical activity and report on their health goals. The mobile ecosystem is also being used to monitor – on a real-time basis – the state of consumer health. Biometric sensors that interface with consumers’ mobile devices are providing doctors with remote access to their patient’s vital signs. For the first time ever, doctors are now well positioned to proactively address problems before they become critical issues.

• Education: Institutions of higher education are using the mobile ecosystem to change the learning experience. The mobile-enabled classroom facilitates a participatory environment where the students become actively involved in the acquisition and sharing of information. In support of this new environment, the role of the professor is also changing from that of ultimate authority to that of a facilitator. The professor’s job is now to teach concepts and help students navigate and use the rich pool of information available via the Internet and help them discern the good information from the bad. With mobile technologies, learning becomes an active experience rather than passive responsibility.

• Finance: Banks, financial institutions and wireless carriers are working aggressively to leverage the mobile ecosystem to redefine decades-old payment processes. The mobile ecosystem is seen as a powerful tool to enable companies to own a greater and greater share of the consumers’ wallet. When combined with product promotions, mobile payments are seen as a means to fundamentally redefine where, when and how consumers shop, pay for and account for their acquisition of goods and services.

The scope of this change has proven to be so profound and far reaching that an increasing number of companies are diverting budget dollars from less measurable customer engagement solutions into those that involve mobile. As the capabilities of mobile technologies increase and the utility and power of mobile-enabled implementations expand, mobile and the mobile ecosystem will assume a more and more dominant role in peoples’ lives.

So what does this mean to digital signage? Three things:

1. Consumers will increasingly look to their smartphones as the primary source of information, entertainment, commerce and institutional engagement – both in and out of home. They will increasingly become completely dependent on being connected. They will be trained to keep their eyes and attention keenly attuned to their phones. They will come to largely ignore any external sources of content that will compete with attention to their smartphone.
2. Digital signage must become an integral part of the mobile experience if it is to be more than just pretty images. Digital signage deployments must contemplate, reinforce and promote the mobile experience. Viewers must be trained to expect that the purpose of digital signage is to facilitate a mobile engagement appropriate to the venue in which it is installed.
3. Those that deploy and operate digital signage must become schooled in the methods, procedures and technologies for linking digital signage with mobile technologies. They must understand the mobile model, how consumers interact with mobile technologies and the various solution-sets that can be leveraged.

 

Mobile Ain’t Easy

DSA Mobile Mind Map (Click To Enlarge)

Few digital signage providers, especially AV Integrators, are pursuing the convergence of digital signage with mobile technologies.  For those that are, the implementations are basic and generally limited to the display of 2D barcodes or SMS short codes.

Convergence is rare because most digital signage solutions providers are ill equipped to handle the complexity of mobile. This complexity was made evident in recent work being done by the Digital Screenmedia Association’s (DSA) Mobile Committee.

Earlier this year, the DSA’s Mobile Committee was tasked with completing a “mobile mind map” to complement the mind maps already prepared for digital signage and kiosks.  Early work on the mobile mind map identified 27 elements comprising 4 levels of complexity.  This early effort, although essentially not more than a placeholder, paled in comparison to the size of the digital signage or kiosk mind maps.  However, when the Mobile Committee finished updating the mobile mind map, the results were far different.

The updated mobile mind map contained almost 300 elements representing 6 levels of complexity.  This made the mobile mind map more complex than the digital signage and kiosk maps combined. It should be noted that nothing in the mobile mind map was filler or placeholders.  All of the depicted elements were deemed essential to conveying the complete scope of the mobile environment.

So what lessons can be gleaned from a map with 300 elements with 6 levels of complexity?  At macro level, not much except that the map provides a good visual of the mobile landscape.  At a micro level the mind map can help those thinking about convergence to assess their ability to architect a solution without consultative guidance.

In summary, convergence requires more than a digital sign and a smartphone.  Convergence often requires an expansive solution consisting of a digital sign, a smartphone, a smartphone app and supporting infrastructure and services.

 

My Twitter Strategy

It has been quite some time since I posted a blog entry.  My inactivity has not been from lack of interest or dearth of things to say; it’s simply because I’ve been buried supporting my employer’s (Symon Communications) growth and new market development initiatives.

I’ve also been buried working on several writing projects, which includes a new white paper about the electronic wallet (to be released this month), a book about the mobile revolution (to be released next year) and a number of magazine articles about mobile/signage convergence. I have also been busy tweeting daily on mobile trends that will influence the digital signage industry.

Since many have asked me about my tweeting strategy, I’m going to use this post to discuss it.

My Twitter Strategy

If you follow me on Twitter, you already know I have a unique approach to tweeting.  I call it the “Reasons Why” strategy.  Most like it, but some do not.  Here’s how it works.

I have identified 25 reasons why digital signage network operators need to be aware of mobile.  These 25 reasons are in fact rapidly evolving mobile micro-trends that are either having an impact on the digital signage industry or will have an impact on signage in the coming years. Example micro-trends include: Mobile Payments, Mobile Assisted Shopping, More Advanced Networks, More Advanced Devices, Mobile Commerce, Personal Safety, Personal Convenience, Mobile Entertainment, Personal Health, etc.

Each of my tweets highlights one of these 25 trends.  Each tweet also contains a reference to an article that illustrates how the trend is being manifest.  For example, I may have launched a tweet that says: “Mobile Assisted Shopping: Reason No. 24.15 why digital signage network operators need to be aware of mobile.”  My encoding scheme indicates that Mobile Assisted Shopping is macro-trend number 24 and the tweet contains a reference to the 15^th article in a growing compilation of articles on the subject of mobile assisted shopping.

Each day I compile a list of tweets that highlights one or more of these trends.   I then use software developed by a business associate to launch my tweets.  It’s really an ingenious piece of software.  It monitors when and how often people click through to the articles.  It determines, based upon past click-thru activity, the best day and time to post a particular tweet.  It also determines which tweet to launch based upon past receptivity.

The software will launch a mix of new and old tweets.  If an old tweet has shown reader interest, it will re-launch that tweet on a day and time that is statistically conducive to viewer readership.  If there is continued reader interest (click-thru), it will periodically re-launch the tweet until interest starts to wane.  As long as interest is increasing it will keep that tweet in the re-launch queue.

The software offers great visibility into which trends people follow and their degree of interest.  This allows me to target my research and information to provide my readers with the most exacting information possible.  Suffice it to say, the click through analytics are extremely helpful.  I know which tweets (trends and articles) generate the most interest, which have the greatest staying power and which tweets generate the most interest outside my network of followers (e.g. tweets that are forwarded).

Some people complain about repeated retweets.  To those people, I say: “sorry, but as long as people are clicking through and forwarding the articles, I have to keep doing it.”  My Twitter strategy is designed to educate the largest audience possible with the most targeted information available.

In the 7 months that I’ve been executing this strategy, I’ve gained hundreds of followers and lost a few as well.  For the approximately 400 followers who continue to be interested in mobility, you have my commitment that I’ll keep the tweets coming until I reveal the lessons learned at an upcoming industry conference.

If you’re not following me on Twitter, please do so at @steve_gurley

 

Timing Is Everything…. Especially For The Digital Signage Industry

Earlier this week I had a serious case of déjà vu while talking with a leading digital signage industry consultant. As he was sharing with me a growing concern that the digital signage industry was losing momentum, I was reminded of my experience with the birth of another industry nearly 20 years ago.

In the early 90’s, cellular data technology — wireless data as it was called then –was brand new. With the technology’s creation, industry associations were formed, conferences were produced, magazines were started, consultants emerged and wireless data startups were launched at a break-neck pace.

The country’s leading market research firms quickly forecast the wireless data industry to be worth billions of dollars. At conference after conference, industry pundits, of whom I was one, spoke of the business-changing potential of wireless data.

Every new wireless data deployment became a poster child of the technology’s success. Despite a decent number of wins, however, the industry never seemed to fulfill its growth potential. That didn’t dampen the industry’s optimism though. The beginning of every year brought with it the same familiar cry: “This will be the year wireless data takes off.” But it never really did – at least not for a very, very long time.

The lack of meaningful progress finally caught up with the industry. Company after company failed. Those that survived were absorbed by larger, more established entities. Consolidation was rampant. The most common explanation for the industry’s shortfall was this: “They (the prospects) just don’t want to take the time to understand it.” (This, by the way, is what I hear today from many within the digital signage industry.)

Looking back, the problem with the wireless data industry was two-fold: 1) There was no “killer application.” 2) The market was distracted.

Oh yes… the “killer app.” Wireless data had no killer app; that one thing that would make its adoption a “no-brainer.” Without a killer app, vendors struggled to convey a value proposition that customers could easily understand. Because prospects couldn’t easily understand it, they largely avoided it. (What was true then is still true today: Prospects are busy and don’t have the time to be educated/convinced that some new solution is their savior.)

It is often said that timing is everything. Unfortunately for the many companies that were selling wireless data applications, the timing was bad. Concurrent with wireless data’s emergence was the beginning of the Internet. The Internet, unlike wireless data, had an easy to understand value proposition and accommodated literally hundreds of killer apps. The market was distracted. Wireless data was not nearly as exciting and compelling as the Internet so companies largely avoided wireless data while putting their money on the Web.

It was not until Apple’s concurrent launch of the 3G iPhone and the iTunes app store in June of 2008 that wireless data really took off. (See my Mobile Trends white paper for an explanation.) It took nearly 17 years and the launch of the mobile eco-system before wireless data opportunities exploded.

The parallels between digital signage and wireless data are, to my view, almost identical. Most digital signage implementations lack the killer app and heaven knows that advertising sure isn’t it. Digital signage is also being launched at a time in which the market is being distracted by – get this — wireless data (e.g. smartphones and mobile apps.)

So based on the lessons from the past, what does a digital signage company do? I believe it’s as simple as this: If you can’t beat them, join them. That means, look to mobile for success. I am.

 

2D Barcodes Revisited

Two years ago I wrote an article about 2D barcodes and my opinion of their viability. I thought it would be worthwhile to revisit the subject given all of the recent discussions surrounding the topic.  Before I give you my latest views however, I think it may be worthwhile to look back at what I wrote about 2D barcodes in 2009.

Here’s what I said in 2009:

There has been tremendous discussion of late about 2D barcodes and their use as a mobile marketing tool.  Before one decides to jump whole-heartedly on the 2D bandwagon, it may be useful to get a baseline perspective of what they are and how they work.

2D barcode uses graphical patterns to convey information as compared with 1D barcodes that use vertical bars.  The purpose of 2D barcodes is to deliver more information than can be conveyed in a 1D barcode.  But just as a 1D barcode must be read by scanner technology, a 2D barcode must be read by  pattern recognition technology.

There are over 60 encoding schemes for 2D barcodes.  For a 2D barcode reader to interpret a 2D pattern, it must support the encoding methodology of the barcode being displayed.   In the late 90’s, a Japanese company created what is now one of the most commonly used encoding schemes, which is called the QR (Quick Response) Code.  The QR format is frequently used for delivering messages to camera-equipped cell phones.  It should be noted however that the QR Code is not the only encoding scheme that can be read by mobile devices.

The process for reading a 2D barcode via a cell phone works as follows:

A 2D barcode is affixed to an object or shown on a digital sign.  The viewer launches a reader application on their cell phone.  (Note: These applications can typically be downloaded for free.)  The viewer uses the application to capture (flash) a picture of the barcode via their phone’s camera.  The reader application then interprets the barcode.  Depending on the sophistication of the reader application and the contents of the barcode, the application will perform a specific function: e.g. present the information, transfer the information into another application, download an application, access a web page, dial a number, show a map, etc.

The Japanese have been using cell phones to read QR Codes since the late 90′s and European adoption has been increasing in recent years. In the U.S. however, neither companies nor consumers have readily embraced 2D Codes in any meaningful way, but many believe that the day is coming.

A recent discussion with several technology experts produced a consensus that 2D barcodes will become ubiquitous in the U.S.  A strategist for a major handset manufacturer, who by way of example had a QR Code on his business card, felt that the future was very bright for this type of technology.  He said that he saw a day when every product and location would have a barcode attached.  This sentiment was echoed by the CEO of a company that develops location-identification products for mobile phones.    A technologist with a leading digital signage company suggested that 2D barcodes would become a common fixture in digital signage content.  It was even suggested that 2D’s future was secure because of Google’s interest in the technology.  Google has been aggressively advocating the use of the technology and even been providing businesses tools to print 2D barcodes for display on their brick and mortar storefronts.  As one person in the group said: “You can’t argue against something that Google gets behind.”

Although I personally like the concept of 2D barcodes — especially when the reading process works smoothly, I do not share the same enthusiasm for the commercial prospects of 2D barcodes as my peers.   My reasons are as follows:

• First, 2D barcodes will be supplanted by easier to use technology, e.g. Common Short Codes.  I have found it vastly easier to text a keyword to a short code than “flash” a picture of a barcode.  If you’ve ever tried photographing a barcode, you’ve likely found that it does not work well in low light conditions or in places where you are walking or moving.  In addition, it is in many cases a relatively cumbersome process to execute.
• Second, there are no standards for 2D barcodes.  Although the QR Code is the most common barcode for mobile applications, there are 12 other encoding schemes that are targeted at mobile devices.  This lack of standards means that it is possible that consumers will likely encounter 2D barcodes that cannot be interpreted by their phone’s reader software.  There are however standards setting bodies working on this problem, but one has to wonder whether the standards will be set before other technologies make 2D barcodes irrelevant.  Remember, it took almost 30 years following the invention of the 1D barcode for Uniform Product Codes (UPC) to be deployed on a mass scale.
• Third, 2D barcodes are generally static (see note herein). Once you print the information, it’s there for the duration. Market trends have people moving away from static information. Market and technology trends are gravitating towards a model in which information is delivered wirelessly, based upon location, time of day and, ultimately, direction. NOTE: There are dynamic 2D barcodes on the market (e.g. Scanbuy’s Scanlife via EZCodes and Microsoft’s Tag codes) where a flash of the barcode prompts the reader software to use an index stored in the barcode to access a remote server to retrieve information from a database. Server-based 2D solutions require that a third party registrar manage the assignment of the barcode/index and host the information. It remains to be seen if the market will unanimously endorse a registry- based solution as the most well known are proprietary.
• Fourth, there is no way to get critical mass in a timely manner. Although it is easy to run some 2D trials, it is another thing to begin deploying a specific coding scheme on a universal basis. Very few companies will be willing to invest in a technology that has no standards and can be easily supplanted by new technologies that are on the horizon, e.g. RFID and other near field communications (NFC) technologies. Very few consumers will be interested in embracing a technology that they don’t understand and requires a change in their existing habits. NOTE: At the writing of this article, there are quite a few 2D barcode trials in progress. It should be noted however that some of these trials are using QR Codes, some Scanbuy codes, some Microsoft’s Tag codes and others are using a mix of various encoding schemes. It will be tough to build critical mass in this type of environment
• Fifth, it is a difficult model to monetize.  Although it took UPC barcodes many years to catch on, at least there was a very clear value proposition connected with them:  A company could increase sales and reduce labor costs at the checkout line.  UPC codes introduced tremendous efficiencies into the retail industry.  Fewer checkout personnel could process more customers in less time.  This provided clear financial benefit to those who adopted the technology.  In terms of 2D, the application must be identified that will make the value proposition for 2D as clear and compelling as the UPC code otherwise it will be unlike companies will embrace the technology in mass.

In summary, some believe that 2D barcodes will be widely used in digital signage.  It is true that it is a workable technology for delivering information to a mobile phone, but it has limitation — primarily the lack of standards and the lack of measurable value.  The question is therefore this: Will we see it used in digital signage?  The answer is yes, but I predict on a limited basis.  Most signage operators will find it onerous to manage the extension of content that comes via 2D barcodes and without a clear value proposition, few will want to expend the effort.

Here’s what I have to say two years later:

2D barcodes – particularly QR Codes – have experienced a dramatic increase in deployment.  A study in 2010 showed that 2D deployments had seen a 1200% year over year increase.  Utilization however is quiet another matter.

By and large, consumers are still confused by the value of 2D codes.  According to a recent study by a leading retail analyst, 2D barcodes are only used by 6.3% of store patrons.  It would appear that consumer adoption has been so low that Google, an early and highly visible leader in the field, has withdrawn their active support and has diverted their attention to NFC (Near Field Communications).

After following the subject fairly closely over the past two years, I have come to the following conclusions:

1. 2D barcodes will survive — for a while.  They are not going away anytime soon, but they will eventually go away.  Consumers will learn to use them and they will provide value.  I do not believe however that they will be the marketing panacea that many had envisioned.  I believe they will be used to augment the entry of information such as contact information, URL’s, etc. but they will not be the primary means for engaging a consumer via their mobile device.
2. NFC will quickly pass 2D barcodes as a means to deliver customer engagement.  The NFC model will be more conducive to customer technology usage patterns.  It will be much easier for a consumer to wave their phone over an item than open a barcode reader, position their camera over the barcode and let the reader interpret the code.
3. NFC will become ubiquitous much more quickly the 2D – even though 2D has had a nearly 15 year head start.   NFC will become technology that consumers will use to pay for products and services at the physical point of sale. NFC will therefore be more rapidly embraced.
4. NFC can be interactive. Interactivity will boost the number and types of applications where NFC can add value.  2D codes do not support that same level of interactive.

In summary, 2D barcodes are here for the time being.  As NFC tags get cheaper, NFC will supplant 2D deployments.  In 5 years, 2D will begin the process towards its eventual demise.  In 10 years, I believe 2D barcodes will be almost gone – totally and fully supplanted by better approach and technology.  It would appear at this time that NFC will be that technology.

 

Just Returned From CTIA Wireless 2011

Presenting At The CTIA Wireless Conference

I just returned from a three day trip to the CTIA Wireless 2011 conference in Orlando. I was there on behalf of the Digital Screenmedia Association to give a series of talks targeted at educating the mobile industry on the value of digital signage as a tool for promoting mobile context. We were pleased to have the sponsorship of Symon and Intel, which enabled us to get the digital signage message out to a new audience.

I won’t use this post to talk about “mobile context” but if you’re interested you can read the article on which my talks were based. What I will talk about in this post are my observations from the show and their implications to digital signage.

There were five key trends that I saw this year:

Talk of ever-increasing mobile data utilization and the unrelenting demand for wireless spectrum were again common themes of this year’s show. The T-Mobile/AT&T deal was held up as the poster child of the actions being taken by big carriers to secure enough spectrum to accommodate the incessant demand for data-supported services. There were a lot of new technologies on display for optimizing network utilization. Of course talk of 4G was everywhere and there was even talk of the actions being taken by the wireless carriers to increase the importance and role of WiFi. All in all, the carriers are bracing for exponential growth in mobile data usage, which as you know has been spawned by the smartphones and the new mobile ecosystems.

Mobile commerce continued to be a key topic with mobile payments being the common element among pretty much every discussion. There were several educational sessions dealing mobile payments and a lot of talk about it on the show floor. As it turned out, there were varying opinions about which type of mobile payments mechanism would succeed, but there was definitely agreement that the U.S. is on track to take a leadership role in this space. (It should be noted however that many countries in Asia, Africa and the Middle East are currently leading in the use of mobile payments. Particularly African countries.)

New devices were everywhere. Seemed like everywhere I looked was a new Android phone. Android-based tablets were everywhere as well. With over 33.3 million Android phones sold in the fourth quarter of ’10, it’s easy to see why everyone is jumping on the Android bandwagon. Windows Phone 7 had a presence, but it certainly felt overshadowed by Android. Apple of course was not there. They never are. I would love to be Apple — they just do what they want and grow like mad. (BTW, people are still lining up every morning at the Apple store by my house to be one of the lucky few who get a chance at buying the day’s allotment of iPad 2’s) Just goes to show: If you can build a better mouse trap, the world will beat a path to your door. Word of advice to HP, RIM, HTC, Samsung, LG, Nokia, etc. It’s not just the device that the people are buying; it’s the entire ecosystem that is winning the day for Apple. Remember, the ecosystem, consists of a seamless integration of the audio and video content, the applications, the device and the commerce platform.

Mobile advertising and marketing were a key discussion topic. The talk – as I understand it — focused on how new models like iAd and Google’s AdSense platform. I did not attend any of these sessions because I spent the time in the mobile payments education stream, but the buzz around mobile marketing was definitely palatable.

Mobile health was also a key discussion topic at the show. Numerable advances are being made in using cell phones to monitor personal health. One of the show’s keynote speakers talked of being able to reduce medical expenses and improve the level of service by using wireless technologies to continually monitor and report on a person’s vitals.

In summary, all the talk and buzz around the show was about the cell phone becoming the one device that people use to manage their lives. It is clearly believed that the trend towards mobile payments and health monitoring is going to ensure that people will come to depend totally and completely on their phones in the next three to five years. Our message to the audience was that digital signage can play a role in enhancing the mobile experience.

As a side note. I got the opportunity to spend a lot of time with David Drain, the Executive Director of the Digital Screenmedia Association. It was David’s first time to the CTIA conference so I enjoyed hearing his observations and thoughts about the show. Next time you see him be sure to ask him about the experience. Ask him too about the 3D cell phones. Definitely unique.

 

Digital Signage – Two Years Out

I just finished writing an article for an upcoming edition of the “Digital Signage Future Trends Report”.  The purpose of the article is to convey my thoughts on the prospects for the digital signage industry looking forward two years.  The following is the concluding paragraph from my article.

“My prediction for two years out is this:  A handful of companies will learn to master digital signage and mobile convergence.  Those that do will assume a dominant position within the industry as they facilitate an intimate and measurable experience for the viewers of digital signage.  The great majority of the companies who either refuse or cannot master convergence will be following a path to to their demise.”

Yeah, yeah, I know.  You’re saying to yourself, “What else would Steve say.  His whole life revolves around advocating convergence.  I wouldn’t have expected anything else.”

Well, you’re right.   But there’s a reason for it.  I absolutely believe that signage/mobile convergence is essential to the industry’s survival and well-being.  Let’s face it.  Things are changing.  Our society is changing. The way that people interact with one another is changing.  How they get their news and entertainment is changing.  How they conduct commerce is changing.  Where and when they do things is changing.  And, yes…. Mobile technologies are playing a central role in all of this change.

Every day I Tweet about ways in which mobile technologies are changing people’s lives.  In personal commerce, convenience, safety, security, shopping, communications, health, finances, etc., etc.

To date, the digital signage industry has given lip service to mobile but little else.  I outlined reasons why in my “Future Trends” article.  I’ll let you know when it comes out.

Bottom line, if the industry doesn’t get on the stick, there will be no industry.  It will be an oligopoly.  Showing content on a screen is great, but enabling an end-to-end, immersive consumer experience is quite another thing.

Think I’m overplaying the value of mobile and the real-time nature that mobile delivers, watch the above video to see what Eric Schmidt of Google thinks about mobile and real-time communications.

 

What I Tell Mobile Solution Providers

It’s the venues who will ultimately control convergence

I was recently contacted by the CEO of a major mobile messaging company and asked if it would be beneficial for him to attend one of the upcoming digital signage tradeshows.  He indicated that he wanted to introduce his company and the mobile value proposition to digital signage exhibitors in an attempt to build a foundation for exploring opportunities to work together.  My advice to him: Don’t bother.

Those of you who have been following my writings know that I have been an unceasing advocate of the convergence of digital signage and mobile technologies.  So why would I tell a leading mobile company not to bother with digital signage tradeshows.  Two reasons:

1. The lack of homogeneity within the digital signage industry would limit his ability to deliver a broadly coherent and appealing message.
2. Those who exhibit at digital signage tradeshows are not those to whom he would sell his products.

Regarding the lack of homogeneity, there is a common misconception by those outside of the digital signage industry that all digital signage providers are the same.  There is little understanding of the various economic and operating models that exist within our industry.

Those outside the digital signage industry do not typically know who the companies are that sell only hardware (e.g. media players, servers, screens, video switchers, mounts, etc), sell only software (e.g. content management systems, content design tools, network monitoring, etc.), sell only services (e.g. consulting, content creative, solution design, installation, etc), sell a mix of hardware, software and services or sell the total solution (e.g. hardware, software, services and support).

Those outside the industry are unaware that of those that sell the total solution some provide venue-managed solutions, some provide third party-managed solutions and some deliver their own form of managed solution.

Those outside the industry are unaware that some solutions are sold for the purpose of showing advertising, some are sold for the purpose of supporting venue messaging priorities and some are sold for the purpose of supporting both advertising and venue priorities.

Finally, those outside the industry do not know that some solutions are hosted while others are premises-based.

In order to successfully deliver his message, the mobile CEO would need to tailor his message to appeal to each of the aforementioned constituencies.  More importantly, he would first need to know which of these constituencies would even be receptive to his message.

Receptivity.  That’s the key point.  As referenced in point #2 above, those who exhibit at digital signage tradeshows are not those to whom a mobile company would likely sell its wares.  Mobile companies need to sell their services to those who are actively involved with managing a venue’s message to the market as well as their customer engagement strategies.  This is a group that is not likely to be at a digital signage tradeshow.

So why do I promote mobile/signage convergence when there is so few within the digital signage industry who would be interested procuring mobile solutions?  Two reasons:

1. The digital signage industry needs to be aware that mobile technologies are both a competitive threat and a benefit.  The industry must be prepared to speak to this when asked by prospective buyers.
2. Venues who purchase digital signage need to be aware of the value of converging digital signage and mobile.  After all, it’s ultimately the venues who will control convergence.

 

Money Flows Where The Herd Goes

Over the past two years, I’ve spoken and written extensively about the trends and events that are facilitating a gigantic mobile revolution.  The point of my efforts has been to educate the digital signage industry on how the exploding consumer affinity for mobile will ultimately impact both digital signage and digital signage ad revenue.   

Reactions to my work have been mixed.  Although most have embraced my message, others – particularly those involved in ad-funded digital signage – have attacked my work (and sometimes me) as being nothing more than a self serving promotion of a personal agenda at the expense of digital signage.   

Today it is clear that the impact of the mobile revolution has been far greater than the wildest expectation of almost everyone.  In only a year, the growth in mobile has been so dramatic that hundreds of thousands of smartphones are now being sold daily, tens of millions of apps are now being downloaded weekly and billions in new ad dollars are now being funneled to mobile annually. 

Earlier in the week I had a discussion with one of my detractors.  I asked him if he still felt the same about my message given the market feedback and all that has transpired in the mobile space within the past year.  Net on net, he agreed that mobile is having an impact on digital signage but he still maintained that certain digital signage implementations have a distinct value that mobile cannot address. 

Although I fully agreed with his position, I pointed out that our respective views on the matter were in fact irrelevant. The research clearly shows that for a marketer to ignore mobile at this point would mean career suicide for the poor soul. The bottom line is that money flows where the buzz goes — and the buzz is certainly in mobile. 

While it is true that money flows where the buzz goes, it is also true that the money flows where the herd goes.   Everyone knows that a stampede starts with a few spooked cattle.  Once the stampede begins, the entire herd follows.  None of the cattle question why they’re stampeding; they only know that the leaders are running and so should they.   That’s where we are in retail.

In retail, the mobile stampede is underway.  The Best Buys, Penney’s, Targets, Amazons, eBays, Starbucks, Pizza Huts and other leaders in the retail world have embraced mobile and it’s working for them – and working very well.  They’re off and running and the rest of the herd have taken notice and is following suit. The herd is not stopping to ask why they’re running.  No, they only know that if they don’t run they’ll fall prey to the wolves. 

So what about those situations in which digital signage is clearly a better fit than mobile?  For all but the most forward thinking companies (aka the leaders), digital signage is likely to be an afterthought – on the back burner so to speak.  The herd will not consider digital signage regardless of its value. 

The herd will be more focused on how they’re going to keep up with the leaders who are already seeing very tangible bottom line results from mobile.  Only those with the intellectual and resource bandwidth to consider alternatives will take the time to factor in what the herd will increasingly view as the more capital intensive and less measurable digital signage.

Where does this leave digital signage developers and digital signage network operators?  Simply put: Either dazed and confused or naive and unsuspecting.  But, this need not be the case.  Digital signage is actually in a tremendous position to facilitate the mobile experience.  In fact, mobile is very likely to be the “killer app” for digital signage.  And this is how digital signage developers and network operators need to start thinking from this point forward.

In the weeks that follow, I’ll be writing on the strategies and techniques that developers and operators can employ to take advantage of the mobile wave. 

I know what you’re likely thinking: “Why would a guy who works for a digital signage company like Symon be working to help the competition?”  The answer is really quite simple. As an industry, we won’t be competing with each other; we will be working to maintain our mutual relevance.

Think I’m wrong?   Read my blog (www.steve-gurley.com) Read my writings, look at the articles I’ve selected.  If that’s not enough, in the coming days I’ll be launching a Tweeter series called: “The 25 Reasons Digital Signage Networks Need to Embrace Mobile.”  Follow me on twitter at @steve_gurley to see why mobile can be either friend or foe to digital signage.

In the end though, we all have to share information.  The challenge we face is bigger than any single company.

 

Addicted to Mobile

Five months ago, I wrote a white paper describing five key trends that would affect digital signage – particularly ad-funded digital signage.  Those trends focused on the increasing affinity of consumer to:

1. Consume video-oriented content – particularly via mobile devices
2. Consume and share information via social networks – increasingly via mobile
3. Adopt wireless technologies – specifically next-gen smartphones
4. Use wireless technologies – specifically location-based services and apps
5. View and engage with mobile ad’s

The point of my paper was to help those deploying digital signage to consider the mobile experience and the habits of the mobile user.  This was intended to help the digital signage operator understand one essential truth:  A failure to appreciate how consumers engage with mobile technologies can result in a signage deployment that consumers ignore.

Since I wrote the white paper, the aforementioned trends have continued to rapidly evolve.  In response, I plan to re-release an updated version of my paper in late January to reflect the latest statistics and observations.  In the meantime, I’d like to call your attention to a sixth emerging trend that I find fascinating.

A few months ago Matt Richtel, a technology writer for the New York Times, spoke with NPR about a series of articles that he had written on the affects that technology – particularly mobile devices — were having on peoples’ brains.  The points I found most fascinating were as follows:

• The average person is consuming three times more information today than in 1960.
• An ever-increasing amount of information is being consumed via mobile technologies.
• People are less engaged with the world around them when they are constantly using mobile devices as opposed to when they are away from them.
• The immediacy of information delivered by mobile devices appears to be creating a physical and psychological dependence.
• Research indicates that checking the phone or a “buzz in the pocket” prompts a dopamine and adrenalin release that becomes addictive.

According to Richtel, the research is still in the early stages, but the empirical evidence suggests that the addiction to the mobile experience is real. 

Think about it.  Have you ever heard anyone refer to their BlackBerry as the “CrackBerry?”  Millions of BlackBerry users tell stories of compulsively reaching for their devices whether notified to do so or not.  Some have even told of regularly feeling their phone vibrate even when no vibration occurred.  These have been labeled phantom alerts.

Business users have understood the Crackberry phenomenon for years.  With the launch of the new generation of smartphones (e.g. iPhones and Android phones), consumers are beginning to experience the Crackberry addiction as well.  But it’s not necessarily email that’s driving consumer addiction; it’s Facebook, Twitter and text messaging.

So what does this emerging trend of mobile device addiction mean to the digital signage operator?  It means now more than ever, operators need to understand the psyche of the mobile user.  It means that they must be aware of how, where and when a mobile user will engage with their devices.  As noted above, failing to do so will result in a signage deployment that consumers will not watch because they’re too engage with their phones.

As a postscript, shortly after writing this article I turned on the television to watch the news.  The first thing I saw was an interview with Sarah Palin’s nine year old daughter, Piper.  Piper was asked how she felt about her mother’s growing infamy.  Piper said: “She’s really busy and addicted to her Blackberry.”   Based on the NPR interview with Matt Richtel, Sarah really could be addicted to her Blackberry.