Virgin Megastores Tests Interactive Digital Signage That Drives Store Traffic

Digital signage is a fast-coming Virgin Megastores tests interactive audio-visual application that is digital signage that drives store traffic serving to augment a retailer's tra- ditional means of static in-store BY M.V. GREENE print and display advertising and marketing by leveraging comput- ith its cadre of CDs and DVDs, apparel, elec- er technology to present dynamic tronics, games, books and other entertain- content to consumers. ment-culture products, Virgin Megastores is To date, the use of digi- Wwhere hip people want to be. tal signage in retail set- 'At the Virgin store on Hollywood Boulevard in Los Ange- Display hanging tings has largely involved placing signs and change les several months ago, fans screamed as Mariah Carey video display terminals near them dynamically put in an appearance to celebrate the re-Iaunch of ''The checkout areas to disseminate in- Project fashions Emancipation of Mimi: Ultra Platinum Edition," her top-sell- onto mannequins formation and images as captive ing CD. That same week, at the Virgin store in New York's and other objects customers wait in line to make Times Square, reality TV personality Nicole Richie held a Project full-motion their purchases. Virgin and its book signing for her first novel, "The Truth About Dia- video onto glass and partners are taking the signage monds." window displays concept to a new level of applica- Create digital menu tion by projecting the content VlIgin Megastores aims to be as trendy as the stars it attracts, boards to feature throughout the Times Square so to walk into its restyled, tri-Ievel Times Square location and daily specials store and allowing customers to have the Nirvana baby "swimming" at yOurevery move should- Run video featuring interact with images. selected projects n't seem all that unique. from in-store kiosks "The key to this is interactivity Retailers always balancing consumer whim and tight oper- and getting the customer engaged - Incorporate training ating margins - wrestle with finding ways to spur excitement and corporate initia- to stay longer in the store," says and sales.Los Angeles-basedVirginEntertainment Group, which tives John French, strategic business operates the global Virgin Megastores franchise within the busi- manager for digital signage at Ep- ness empire of Britishtycoon Richard Branson, believesit may have found that edge son, which is providing the projection in the deployment of interactive marketing through a digital signageapplication with technology via its PowerLite family of vendor partners Epson America and Canadian software inventor GestureTek. commercial class projectors. 96 STORES I JANUARY 2006 WWW.STORES.ORG DIGITAL SIGNAGE Virgin Entertainment Group chief VincentJohn Vincent. But the idea of its Walk this way marketing officer Dave Alder, finding coming alive and being interactive real- To deploy, a video camera, projector that buzzaround a promotion that mar- ly allows it to be much more attractive and computer deviceare ceilingmount- keters covet, says the signage has creat- - and attract a lot more attention." ed; content isprogrammed into the unit. ed quite the "talking point" in the store. The Epson-GestureTek application al- As the camera views the projection, it is "It's rare today to find an entertain- so gives retailers the ability to display 2. able to differentiate between the person ment store that actually entertains its "hanging signs" throughout the store who is stepping into/interacting with the customers," he says. "Unlike many oth- and change them dynamically, project projection and the image itself, gauging er entertainment retailers,we work hard fashions onto mannequins and other ob- speed and angles. The reaction to the to add value to the shopping experience jects, project full-motion video onto projection is different for each person by adding a true sense of fun. The digi- glass and window displays, create digi- who walks by becauseof unique individ- tal signage marketing initiative is a sig- tal menu boards to feature dailyspecials, ual movements. nificant part of this experience." run video featuring selected projects "Things will move around in conjunc- The baby "swimming" along the floor from in-store kiosks and incorporate tion with the nature ofhow people actu- of the Times Square shop is an image training and corporate initiatives. ally interact with the graphics, as op- from legendary grunge band Nirvana's "A lot of people are looking at digital posed to just triggering something that's genre-defining "Nevermind" album, signage to re-purpose advertisements touched," Vincent says. firstreleasedin 1991 and re-packaged in and promotions that provide some sort GestureTek initially developed its of livelyimage to at- GroundFX system in the 1980s for use tract somebody's at- in corporate promotions, entertainment, tention," says Barry museums and sciencecenters where the Wise, Epson's strate- "camera would look at you, grab your gic business manag- image and put you into the graphics," he er on the Virgin says. "People loveto interact with it.The Megastore install. fact that nobody ever touches anything "We feel that digital is one of the better points in the retail marketing really be- space. Youcan have people veryinterac- comes that last bas- tive and you don't have to worry about tion within a retail something breaking down because of store to automate.. the way people are using it." and to reach out and French says Epson is working with re- touch that customer tail customers to measure return on in- Digital in a number of dif- vestment for the application, but much interactive ferent ways." of that depends on what the retailer DVD format in 2005 aspart of marketing sets Virgincustomers, Alder says, wants to achieve from visual merchan- a classic album series. Virgin Virgin apart have beenintrigued at the sight dising. Virgin's Alder says part of the sought to make a splash to from the pack. of the image of the swimming payback for Virgin Megastores willbe promote the DVD release,and baby chasing the dollar bill as measured in the impact it will have on digital signage is the medium it chose. depicted on the original album cover."It widening the Virgin brand. "The baby featured on the [album] certainly helps to set us apart and en- Retailers increasingly are embracing sleevemovesaround in itspool and bub- ables us to live up to the expectation of the concept of digital signage, and Wise bles emerge as it does so," Alder says. Virgin as a creative brand experience," believes the Virgin Megastore applica- "It's a perfect use of the technology." he says. tion will be like a shot across the indus- Toronto-based GestureTek supplies One ofVirgin's objectiveswith the sig- try's bow. the software and content manipulation nage application is to drive business "What I see retailers doing is making through its GroundFX system,which al- throughout the store. As customers shopping more exciting by identifying lows customers to "control" the adver- move along with the baby's image, they who the customer is and connectingthe tising as they encounter it. are being led toward under-visitedareas message that's being delivered to that , . where sales could use a boost. particular place in time." StORES Billboara on the floor Vincent calls the signageapplication a "You're taking the same concept of a "way-finding" system."It willsort of di- M. V. Greene is an independent writer billboard that might be up above peo- rect you to go in this direction to find and editor based in Owings Mills, ple's heads or on the wall and putting it this particular product and move traffic Md., who covers business, technology on the floor," says GestureTekpresident flow deeper into the store," he says. and retail. 98 STORES / JANUARY 2006 WWW.STORES.ORG.

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