Digital Advertising Captures Customer Data With New Interactive Technology

With giant retailers like WalMart and otherstriggered their response.
investing heavily in point of purchase digitalHow Digital Advertising Tracks Customer Behavior
advertising, we can safely say that digital signsTo demonstrate how digital advertising systems
have really arrived as a merchandising andcan track customer data, let's look at three
product promotion tool.methods of interactivity:
The strengths of digital advertising are well• Indirect interaction. This interaction is not
known. One of the commonly cited weaknessesinitiated by the customer. It usually involves some
is the lack of any effective means to measurekind of motion sensor that triggers content to
not only the traffic walking by a digital sign, butchange when a customer stops near the sign and,
also a customer's response and level ofin theory, takes a closer look. The digital
engagement with the sign.advertising system can capture data about what
As interactive digital advertising begins to supplantwas playing when the customer stopped so the
traditional digital signs, new opportunities areretailer knows what kind of content is most
emerging for measuring audience volume andeffective.
response.• Touch screen. This interaction is initiated by
Gauging Customer Responsethe customer and, as such, is more powerful as a
People of a certain age will likely remember beingresearch tool. The customer is attracted to a
stopped in a shopping mall by someone with adigital sign and given options to touch the screen
clipboard looking for participants in a survey aboutfor sales and promotional information, to print a
shopping habits. If you recall these moments, youcoupon, to check product availability and so on.
likely also remember being somewhat annoyed orThe software that runs the digital advertising
brushing the person off with a polite "too busy" assystem can track what was playing when the
you pointed to your watch.customer touched the screen and which
Retailers knew then, as they know now, thatselections the customer made to see which
intruding on shoppers in this way detracts fromoptions engaged the customer most. Tracking
their shopping experience and can buildtime of day against this data paints a picture of
resentment over the long term.what kind of shoppers are in the store at various
In lieu of live questioning, some retailers now askday parts, so advertising can be better targeted
shoppers to participate in online surveys, with linksto them.
usually provided at the bottom of store receipts.• Next generation. This option involves the use
Shoppers are enticed with chances to win giftof cell phones and PDAs. Cell phones are part of
cards or other prizes. The downfall there, ofthe so-called "next gen" in digital advertising. A call
course, is participation. Just like the clipboard-totingto action is displayed on the signs, prompting
mall surveyor, online surveys are easy forviewers to text in to receive a coupon or enter a
shoppers to ignore.contest. As described in a 2006 article on the
Into this environment comes digital advertising.Media in Canada Website, this method is akin to
Before the addition of interactivity, evidence oftracking the click-through rate on a Website ad
the impact digital signs had on shopper behaviorbecause it tells the retailer exactly how many
was pretty much anecdotal - a certain video loopresponses there were for each call to action.
played at a certain time and, coincidentally or not,With interactive technologies capturing the kind of
sales for the advertised item went up.data that advertisers and marketers want to see,
Interactive or hybrid digital signs, on the otherdigital advertising - already gaining popularity as a
hand, are tailor-made for tracking customer data.marketing tool - is poised to become an even
They can tell retailers whether or not customersstronger presence in today's retail landscape.
are responding to the signs and, if they are, what