A kiosk including a screen with interactive, "glasses-free" 3-D capability was grabbing eyeballs at the Consumer Engagement Technology World show in New York this week. The question is whether the screen can attract customers when they are installed by retailers.

The 3-D system is being marketed by ProVision 3D Media, a Chatsworth, Calif.-based firm that describes its product as "3D Hologram Advertising Visible Without Glasses." The image is shown through a monitor that can be part of a kiosk or mounted on a wall or ceiling.

Convenience store chain Circle K will begin mounting the screens on the ceiling near the cash register in its Los Angeles-area stores in the first quarter of 2011, says Bob Ostrander, ProVision's vice president, sales and business development.

Additionally Provision told prospective investors in September that it expected its technology would be seen in an unnamed retail pharmacy chain with 7,000 locations. And last April ProVision announced it had signed a deal with New York-based Charter Digital Media to sell advertising on its 3D Rewards Center Network, beginning in Los Angeles with the Hispanic Grocery Network.

The idea is to catch consumer's attention and promote impulse items like chips and candy bars, Ostrander says. "It has speed; it's fun; it's entertaining," he said. 

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The screen shown at the CETWorld show appeared to garner attention of people walking the lanes. The screen was atop a kiosk forcing most to look up at the image. Ostrander used a handheld controller that was reproduced onscreen as a hand. In a game demo, Ostrander held and moved a chalice on the screen and attempted to catch falling golden coins. The three-dimensional aspect added to the challenge of catching the coins.

In another demo, a string of retail brands were displayed in 3-D, appearing to move forward and backward on the screen. In one application the screen would be placed on a kiosk and displayed in high-traffic areas in a store. The retailer's suppliers could rent time on the 3-D device to show their brands.

The kiosks could also be used as part of loyalty campaigns, distributing loyalty cards or coupons of advertisers, says Ostrander. At CETW, ProVision was displaying its 3DEO Rewards Center. Wayfinding is another potential application.

According to a September 2010 Fact Sheet released by the company, ProVision generates its revenues by partnering with retailers, with ProVision providing the hardware and advertising sales support in exchange for placement of its devices near points of purchase. ProVision also offers installation and maintenance services using the field team of Eastman Kodak, says Ostrander.

In its investor presentation, Provision reported an installed kiosk could generate $8,000 in revenues per retail location, per month, from advertising fees and coupon distribution. Monthly expenses could total $2,170 with a $2,000 payment to its retailer partner and costs of $170 for servicing the kiosk. That translated to a profit of $5,830 per location, per month, ProVision says.

Provision projected the deal with the retail pharmacy chain could generate $1,800 per location, per month, due to higher costs and lower revenues than that generated from its other retail partnership. A convenience store location would not generate revenues from coupon distribution, and its profit per location, per month could be $700, according to the presentation.

Three firms have invested a total of about $6.5 million in ProVision since its start in 2001, with another $5.5 million unfunded commitment from Socios this year, according to the company fact sheet. ProVision has $150,000 in cash and $2.5 million in outstanding debt due in 2012. 

Catalpa invested $3.3 million in 2001 and holds a 13 percent stake in the firm, while ProVision's executive team owning 46 percent of the company. The company claims 40 patents or patents pending in proprietary technology and it was awarded the Frost & Sullivan 2010 3D Technology of the Year award.