'Times Square Everywhere' – OOH ready to revolutionize retail as we know it

As e-commerce and retail technologies continue to expand, interactive kiosks are finding greater use as retail enablers.

Retailers already comprise the majority of self-service kiosk operators, according to the 2019 Kiosk Marketplace Census Report, with retail order-and-pay being the leading type of kiosk operated. But as retail technologies and e-commerce continue to expand, interactive kiosks are finding additional uses, such as end-of-aisle fulfillment for omnichannel shopping and as buy-online-pick-up-in-store destinations. But that's not all.

Self-service kiosks are also playing an important role in retail strategies that combine the benefits of both physical and online stores — known as "phygital" — such as The Fitting Room, a Swedish concept that allows customers to browse merchandise on interactive kiosks, try on sample shoes and clothing, place orders and have them delivered to their homes.

Such innovative concepts are not surprising, given the versatility of interactive kiosks. And as exciting as these uses are, there are indications that we've hardly scratched the surface. New purposes will continue to emerge as the more dominant consumer technologies, such as online and mobile order and pay, create new consumer habits and needs. 

An author's prediction

Mark Boidman, a New York investment banker who advises technology and media companies, believes out-of-home digital, known as OOH, is making major strides and promises big changes in consumer shopping behavior. He describes it in detail in his book, "Times Square Everywhere; the Next Wave in the Fast Changing Media Landscape."

While OOH accounts for only a small fraction of media spending today in comparison to television, radio, newspapers and magazines, Boidman expects this to change rapidly, and he sees OOH playing a major role in everyday commerce. He goes as far as to predict that OOH will soon replace television as the dominant media channel.

He sees a blending of mobile technology and OOH, where the content provider holds the consumer's attention for a limited but critical time period.

Location based marketing — yet another rising retail technology — brings the ability to push individual messages to consumers based on demographics and where they are physically at a specific point in time. The technology makes it possible for marketers to engage with consumers at a point in time when they have their smartphone available to make a purchase, and boosts the consumer's likelihood of making a purchase.

Retail environments that enable this marketing opportunity are poised for growth, which is where kiosks and digital signage come in.

Digital technology can create a more engaging experience than traditional advertising channels, Boidman argues, and digital content can be more contextually relevant by displaying the right message at the right moment in the right location.

He goes as far as to suggest that young people will soon choose to bypass stores that don't have display screens to assist them in their shopping journeys.

Why kiosks and digital signage matter

The bridging of physical and online media — which kiosks and digital signage are uniquely capable of doing — can amplify brand engagement through the strategic placement and timing of messages. Boidman points to studies that indicate consumers are more likely to engage with content on mobile devices if they have previously seen related content on a large screen — such as on a kiosk or a digital sign — in a public place.

"While interactive kiosks are hot now, we see new tech where you can interact with kiosks without touching them," Boidman told Kiosk Marketplace, referring to scenarios where consumers use mobile phones to connect to kiosks, as well as other technologies such as gesture recognition. 

He gives the example of a consumer using a kiosk in a restaurant placing an order that includes chocolate syrup. Thanks to location-based marketing, the kiosk collects data about that transaction that will allow the chocolate syrup brand to target a message to that consumer the next time they visit a supermarket. 

While some might consider this level of messaging intrusive, Boidman notes surveys have found that consumers — particularly younger consumers — are comfortable with sharing information in exchange for recommendations and promotions.

OOH unique benefits

Another factor Boidman cites is that OOH messaging is more accountable than other media since it allows marketers to measure its impact by tracking consumers' mobile phones. 

And as OOH networks expand, so does the opportunity for media revenue.

Boidman views OOH as the next phase after online media, which has already surpassed television. He points to a 2017 PJ Solomon Ad recall Study that found OOH had the highest ad recall rate of all media. 

He further notes OOH, having the advantages of a stronger "wow" factor and being non-intrusive, is the only media channel that technology has benefited. All others — newspapers, TV, radio and magazines — have lost importance.