Malls: The Next Generation

In-store POP has been a constant mall presence, and scrolling or multi-panel ads on directories or other shopping-center furniture have become increasingly common. Adding to the media mixture, electronic digital signage (EDS) will become an increasingly viable communication option that conveys advertising messages and aids visitors with wayfinding, traffic and other helpful information.

Dick Trask, marketing director for software manufacturer Scala (Exton, PA), which usually powers flat-panel screens, said a successful network requires an effective collaboration between a software solution, an infrastructure (screens, hardware, etc.) provider and a content provider who understands the content, layout and scale a potential customer seeks. Also, it’s important to know if clients plan to operate the network themselves, or prefer to contract with an integrator, because this can impact the system’s cost and scope.

Programs such as Scala’s InfoChannel, which runs on a Windows®-based system, include content design and plan-based scheduling systems that break down a broadcasting schedule into time increments, or day-parts, and interactive or passive playback functionality on LCD, plasma or LED screens, among others. If the mall uses an IP infrastructure, such as CAT-5 or wireless, to transmit other types of data, Trask suggests integrating the display content to broadcast through the existing infrastructure. An IP network or wireless interface, such as a Wi-Fi connection or handheld device, can manage the content.

When a mall owner considers adding such a network, Trask suggests looking for a scaleable system. If a property owner wishes to pilot a network with a handful of screens, but wants to grow into a seamless web of 100 or more displays, he advises using a system that can expand without sacrificing network functionality. Also, he cited extensibility, which addresses the ability to integrate with existing, in-store POS systems and provide freedom to make frequent content changes to target specific audiences or demographics.

Joe Cuenco, director of marketing for LED screen manufacturer |2140| (Clearwater, FL), said mall EDS systems are in their infancy, but systems installed in McDonald’s® and retailers have proven successful.

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“EDS screens feature increasingly tight pixel ranges that offer resolution matching video screens,” Cuenco said. “Thanks to wider LED viewing angles and tighter pixel pitches, interactive and streaming video captivate potential buyers. There’s strong potential to engage the marketplace.”

Though he doesn’t have in-depth statistical data, Cuenco cites anecdotal reports that retailers who’ve experimented with in-store EDS systems have enjoyed 12 to 14% sales increases.

For outdoor EDS installations, industry veteran and ST columnist Bob Klausmeier noted the following advantages of LED-based, EDS shopping-center installations (see ST, November 2006, page 62):

• High-traffic locations,

• Site-specific advertising,

• Inexpensive cost per impression compared to TV, radio, Internet and other ad platforms, and

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• Rapid message-changing capability.

According to Trask, Indianapolis-based Simon Properties installed 20- to 30-screen systems that incorporate Scala’s software at 10 of its malls during 2006, and he projects 30 more will be installed this year. However, he doesn’t foresee digital-sign networks overtaking POP and other traditional retail advertising, but more as one cog in the advertising wheel.