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SPECIAL REPORT

25 APRIL. 2008

Retail marketing's brave new world

THIS PAGE:
Bluetooth, MOVE technology, plasma & LCD screens and the future Is the modern Australian shopper after plenty of retail therapy, or a quick fix?
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Who is going shopping? How often? And why? All the latest facts and figures

How new digital technology is making its mark out-of-home

The application of digital technology has revolutionised out-of-home marketing and placed it as one of the fastest growing communications sectors. In this report, Louis White looks at where we're at and what's ahead.

f the Telstra T-Life shop on George St, Sydney is anj'thing to go by, expect the influence of digital technology at point-of-sale purchase and in the retail envii*onment to grow in the fiitui-e. With almost 40 LCD and plasma TV sc3:^ns, interactive displays, both static and live content, and a coffee shop in the comer to add to the casual ambiance, Telstra's T-Life store is five times the size of its other outlets. Digital technology' is becoming a new aid in point-of-sale and retail environments. In the past five yeai-s Bluetooth, out-of-home digital narrowcasting, high-definition plasma and LCD screens and interactive billboards designed to attract the consumer's eye have become paramount in shopping centres and retail stores. In coming years, technology will only become more advanced and sophisticated. "What technology was relevant in 1998 is not in 2008," says Anthony Xydis, marketing director of Adshel. "We are only on the cusp of what is going to happen in terms of technology' infiltration." According to the Outdoor Media Association, Adshel has the highest density of outdoor site locations across the Australian and New Zealand markets, generating $428 miihon in net media revenue in AustJ-aha in 2007. Xydis believes the out-of-home digital market will only grow. "Fifteen years ago we haf] \Trtually no roadside advertising and now 15,000 sites exist across Australia." Xydis says. "We can use a multiple of technologies at train stations and bus shelters and so on to reach our tai'get audience. Retail too, has become a really poweiiul environment to reach people." Adshel recently worked with Nike to launch its new Mercurial Vapor boots. The LCD screen shows a twominute video clip of Manchester United's Cristiano Ronaldo using his "secret weapon" - the Nike Mercurial Vapor boots - to race against the

Bugatti Veyron supercar. The sites allow consumers to plug headphones into the sound station to heai' audio for the clip and download an edited, oneminute version of the video clip to a mobile phone - content that is unique to the outdoor and online campaign. "This is only the second time an advertiser has combined a digital LCD display and Bluetooth solution using the Adshel Create portfolio." Xydis said.

ON THE MOVE
Helen Willoughby, chief executive of the Outdoor Media Association, believes the next step will be active audience measurement - an Issue the organisation is cuirently working on vvith measurement of outdoor visibility and exposui-e (MOVE) technology' expected to be available by late 2008. "The MOVE project will be the first outdoor audience measurement tool in the world to cover all outdoor media foiTnats, including shopping centres and aii-port interiore," says Willoughby. "We will be able to track consumers and the mai'ketability of youi" product from the time consiuners leave their home until they reach the shopping centre or store." But it's at point-of-sale, not oudoor, where the influence of digital is growing, according to TVevor Jones, managing director of Phdcreative. Retail Motion is a digital signage company and division of Phdcreative, specialising in the development of TVC quality content for corporate retail and plasma or LCD screens. The company has installed full high-definition 165cm portrait screens for HCF on George St, Sydney, which display customised content. 'Toint of Purchase Advertising Intemational research shows that lfi% of buying decisions are made in-store and Arbitron studies found that 29% of shoppei-s who viewed in-store digital POS made an unplanned purchase

"What technology was relevant in 1998 is not in 2008," says Anthony Xydis, marketing director of Adshel. decision," says Jones. "The message outside the store needs to be multi-layered in order to drive the person into the store ... but everything must be integrated, from out-of-store messages to the in-store digital communication, and the overall key is to get the content right because content is king," he says. "A lot of retailers still aren't using content to their advantage. "Digital is like the internet 20 years ago. That wasn't predicted and the gi'ovrth of digital will be hard to forecast. The crossselling opportunities are endless." gy, says using Bluetooth as part of a shopping centre media campaign is "a great way to engage consumei-s at the jwint-of-pui*chase, with the objective of creating a unique interaction with that brand and driving consumei"s in-store". "Shoppers are bombarded witli hundretls of advertising messages in a shopping centre environment," says Gunn. "Bluetooth provides clients with the ability to cut through these messages and engage with a consumer directly through theii' mobile phone. The beauty of Bluetooth is that it provides retailers with a 24/7 marketing channel - even after hoiu-s, interactive windowdisplays can be delivering content to potential customers' mobile phones (as they are) passing by the premises. > Continued MGE18

BLUETOOTH
One technology that is becoming increasingly popular in the Australasian retail environment is Bluetooth. Claire Gunn, director at Breeze Technolo-

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SPECIAL REPORT
PLASMA AND LCD SCREENS
says The Pharmacy Channel will combine content and advertising designed especially for the healthcare envii-onment. "(It) will aim to engage shoppers while they are spending time in-store, for example, to wait for a presaiption or to seek advice from the pharmacist," says Fishwick. He believes all media has a role to play when communicating to the customer. "A well-planned media campaign that includes retail media on the schedule, will consider the different roles of each medium

25 APRIL, 2008

Retail's digital revolution

"Detailed reporting too provides l-etailers with valuable infoi'mation on the peak download times, over a number of locations." Breeze Ifechnology - Media Planet's Bluetooth technology' partner - recently worked on a fou]-week campaign with Warner Music to promote the Veronicas new single Hook Me Up and the new Now Summer 2008 album in 360 shopping centres and food couits across Australia. The campaign resulted in 11,000 downloads, but tracking Bluetooth downloads to sales isn't easy. Julie Frikken, creative director at Prime Digital Metlia (PDM), says the jury's still out on Bluetooth technology. "It can be perceived as intrusive, and limitations in the technology tend to hinder integi-ated and longer term campaigns. Interactive screens, in theii* many formats, do work, but only in very specific envii'onments. "It's important to remember that, in almost all environments, the audience is there to do something else. Asking too much of them sounds gi-eat in a planning session, but doesn't always translate to success in real life." PDM control Austi*alia's largest centrally managed out-of-home digital network. They recently worked with Boost Juice to provide content for portrait and LCD screens at 65 prominent locations aci-oss Australia. More t h ^ one million youth consumers, 85% aged between 18 and 34. are \ietting every month. "The cuirent state-of-the-art

tone, manner and sense of urgency. "We call this retail media's ability to close the gap between tbe couch, the cai' pai'k and the cash register."

COMMUNICATION THE KEY

Frikken believes that there is still some misconception i-eg'dniing technology in the out-of-home space. "There still seems to be a view that it's difficult to traly engage consumers in busy out-of-home envii'onments," says Frikken. "This may be as a result of the underwhelming quality {)f content on many eai'ly Australian digital signage networks, and paitly as traditional media folk still anticipate that people Svatch' OOHD sci*eens like they do a television rather than tjiking away high impact snipi^ts of infonnation a.s they dweO. "I suspect it's also simply a case of clients and media agencies adapting and accepting a new media," she says. Frikken adds that OOHD deliver messages to a highly targeted anil 'captive' audience in a rich and compelling way. "PDM's media is imique in that it allows mai'keting 'surgical strikes' - messages relevant to a paiticulai- envii-onment, location, and the day of the week and time of the day. In environments with frequent revisits, the constant refreshing of content also engages. Mixing advertising content with other

'We think the jury's still out on Bluetooth. It can be perceived as intrusive, and limitations in the technology tend to hinder integrated and longer term campaigns. - JULIE i, ECD, PRIME DIGITAL MEDIA
technology is intemet facing high-definition media players connected to high-definition plasma or LCD screens," says Frikken. "The acceleration towards large-format digital continues unabated." Out-of-home specialists TorchMedia is another company embi-acing the use of broadcasting content on LCD and plasma screens. The company recently announced its involvement with The Pharmacy Channel, a new digital network of LCD screens being rolled out across 700 Pharmacy Guild pharmacies across Australia. Mark Fishwick, managing director of TbrchMedia, and a(^ust the execution accordingly," says Fishwick. "For example, media such as TV and magazines are gi'eat for long-term branding. Media that are on the way to the retail environment - which can includeradioand transit advertising if the person is on the way to the shops, and also includes advertising in the cai- pai'k and enti'y points to shopping malls - acts as a short-term brand recall zone. And in-store media is the sales activation zone. An advertising campaign that effectively includes all three zones will use the same core message but with a different

Mall / Grocery / Liquor / Petro-convenience / Pharmacy

25 APRIL, 2008

SPECIAL REPORT
shopping centres is solely for communicating with shoppers at the point of purchase,"

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"Advancements in innovation provide stylish and effective technology," says Julie Frikken. Ibniis of'infotainment', such as real-time news an entertainment headlines, also drives impact. "As 'sameness' pei^ades categories and brand loyalty continues to decrease, a mediiiin that influences a clearly defined consumer definitely works. Urban myth has it Ihat this media works better in F'MCG-type categories, but wefindquite the opposite. We have found that bnmd rather than trade drives most large-scale networks being internationally deployed - and that's across all categories." she says. Mike Tvquin, CEO of Eye Media Australia and New Zealand, is in agi*eement over the pivotal role of digital technology at point-of-sale and in a retail envii'onment. "From a client and media agency point of view, I would say one of the main misconceptions is the \-iew that aflvertising inside

vision and mobile interactivity) there to make high impact brand statements. "All of this means less barriers in place'The evolving retail environment pi-oment, more ways to engage and interact vides a much broader bi-anding opportunity with the consumer and fascinating new cretargeted to a broadcast audience. ative opp{)rtunities," she says. "Interestingly, some of the key growth Tyquin believes that technology will concategories within this environment include stantly reinvent itself. automotive and malia. 65% of Australians "Technology is never a 'fad' as such. are regular shoppers, visiting centres once Advancements in innovation provide stylor more a week and spending an a v e r ^ of ish and effective technology', which togeth90 minutes in centre each visit." er with well suited creative content specific to the audience, forms the basis for a sound THE FUTURE advertising business model. With new innovations in technology "It is also dependent on audience appealing quicker than we can click to the engagement and the suitability of this - in next site, point-of-sale and retail environline with changing consumer behaviour, tho ment.'; will become even savvier in their bid right execution, the fii'st time - is essential. i-f consumer spend. But what techAs far as fads go it has become apparent noiogy will survive? to advertisei*s that fonnats which use a FiiMten says an "80/20 rule" will TVC style approach, including audio apply in the near future. sound, has not proven to be an effec"The liread and butter' tive fonnat for communicatOOHD media wiO be driven by ing to consumei*s in a shoprobust, centrally managed netping centi-e environment," works of high-definition he says. screens playing a strategic mix There is no doubt that What modem of quality targeted content, digital media is an attractive shoppers r while 20% will be a combinaadvertising option. It will want from tion of niche technologies I inly become more promiretail experie.. (interactive projector, in-winnent and more tai-geted page2d dow touch screens, weatheras new technology and proof displays, WTap-;SD teletrends e m e i ^ . a

TORCHVIEDIA