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Six trends for in-store media in 2010

With global spending on technology products and services expected to grow 8.1 percent to more than $1.6 trillion, 2010 is likely to be a major year for retailer adoption of digital media.

February 17, 2010

Since the New Year arrived, I've been asking myself, "What significant changes are occurring in the world of in-store digital media? How will 2010 be different from previous years?"

The pace of change in retail technology is typically slower than that of high-octane technologies like the Web or consumer electronics, so sometimes it can be difficult to notice when something new and important is happening. But with global spending on technology products and services expected to grow 8.1 percent in 2010 to more than $1.6 trillion, there is likely to be more retailer adoption of digital media than we have seen in some time.

Below are some key areas of change that retailers and technology providers should consider as digital media budgets are loosened in 2010.

The bottom line is everything: Are you surprised? Probably not, but given the current economic environment, few retailers are deploying digital media solely to improve customer experiences. Approved projects need to solve real in-store problems or provide measurable sales lift, as well as enhance overall consumer and brand experiences. My advice to retail technology buyers is certainly not new, but is often overlooked and it matters now more than ever: To get your project approved, make sure you have a solid grasp on the exact problem you're trying to solve, the benefits you expect, and how you will measure your success.

Multi-touch arrives: After years of talk and extremely expensive small-scale solutions, mass production multi-touch screens are finally here. Multi-touch technology allows interactive developers to create more fluid, tactile experiences, which in turn engage customers on an entirely different level. Samsung, 3M, and HP have all recently launched multi-touch devices, and more options are constantly being introduced. Add Microsoft's Windows 7, which includes built-in multi-touch capabilities, and you can expect to see industry players take their interactive experiences to the next level. User interfaces currently being built for in-store environments could quickly look dated if planning for this new way of interacting is not done.

Mobile gets moving: It has been a long time coming, but major retailers are finally taking a serious look at incorporating mobile solutions into their stores. By this, I mean Web sites and apps designed for mobile phones that enhance or facilitate the shopping experience while a customer is in the store. I would stop short of calling it a trend, and everything hinges on the results retailers see, but this is definitely an area to watch closely. The technology exists for retailers to get creative with in-store mobile apps, and good results by high-profile players could trigger a rush to mobile shopper assistance tools.

Brands find a new channel: Brands have long been a driving force behind in-store displays, but to date their involvement with in-store technology has been somewhat limited, focusing on digital signage advertising or "push button to see demo" displays. In the year ahead, I expect brands to become more involved with retailer-driven in-store interactive solutions, primarily because the available technology is changing. In the past, a brand either owned a screen in a store for a period of time or not. It was an all-or-nothing, costly proposition. In contrast, I now see retailer interest in systems that subtly integrate brand messages into larger interactive experiences that solve a problem for the shopper. Brand messages are only shown when a shopper has signaled interest in a particular product or product category. This new technology should prove attractive to brands and retailers alike.

Bigger is better: Over the last few years, there has been a well-established trend toward larger screens for in-store digital media. The underlying drive for this, of course, is to get noticed. At the same time, cost and customer resistance to being "on display" while using interactive systems have been diminishing. This trend has now reached the point where shoppers often expect large format, media-rich experiences. Small-screened, traditional kiosks are increasingly being used only for mandatory interactions. Bigger screens will rule shopper attention going forward.

Information everywhere: Growing experience with digital signage, plus pressure to control labor costs have emboldened retailers to embrace content-rich shopper assistance systems. Interactive media systems are now being designed with detailed, localized product content, recommendation capabilities, demonstration videos, vivid graphics and direct connections to mobile and email. As these systems become more sophisticated and widely deployed, expect online and brick-and-mortar shopping to become more alike.

Global spending on technology products and services is on the rise, and key solutions ranging from multi-touch screens to affordable brand messaging platforms are emerging. The result is that in-store retail technology is positioned to reach new heights of innovation and mainstream adoption. It will be interesting to see which retailers will tap these technologies to redefine their in-store experiences and whether 2010 becomes a turning point for retail technology.

Troy Carroll is CEO of Intava, a provider of interactive retail technology.