Assignment
Retailers have slowly been implementing digital screen networks. In most instances the messages are focused on branding and impacting the customer shopping experience. Very few networks, like Walmart's SMART Network and, to a lesser extent, Target's Channel Red, have also been able to generate a stream of advertising revenue. In the department store category, Harrods is the only high-end luxury store to successfully sell advertising on its in-store digital signage network. Factors such as a solid and consistent customer base and the store's unique environment have contributed to the success of the signage. It is difficult to imagine any retail environment as unique as Harrods.
It is a key destination for millions of visitors who come to the United Kingdom every year (it is the U.K.'s third-largest tourist attraction). It houses the world's finest luxury brands across a million square feet of retail space. It has a history dating back to 1849 and can count the rich and famous from all corners of the globe as its customers. The brand is synonymous with luxury, the "finer things in life," and a range of merchandise unequaled under one roof. Average daily traffic is 45,000 customers (occasionally rising to 100,000 on special days). Many of them are high-net-worth individuals, including royalty from around the world, as well as celebrities and billionaires. Advertisements on the network are sold to premium brands, such as Armani and Cartier. The medium is often sold as part of an integrated marketing campaign, which often includes other media like posters, lift-wraps (signage on elevator doors), windows, and even pages in the Harrods magazine. Combined with other in-store media, screens are an integral part of the campaign providing impact, awareness, and, often, directional signage leading customers to the "heart of the promotion"-the place where the product and the customer meet. The specific location of each screen was carefully considered so that each customer would have a multiscreen sight line. In most cases, customers see more than one screen within their view. The same content appears simultaneously on each screen in the network, so the advertisers have high impact with their ads appearing several times at once. In most cases, screens are positioned on the sides of escalators in the store.
Unlike the case at many transport hubs, most customers in Harrods stand still on the moving steps. As they glide up to the next floor, they take in the view, which includes the digital screens. Each advertiser has a 15-second slot. Harrods' digital screen network is managed all inhouse. There is a dedicated ad sales team, operations team, and technical and creative team who are all committed Harrods employees who live and breathe the brand. These employees believe in and are included in how and what is being marketed. They sit in the building and pass by the media that they are selling and marketing 20 times a day. They also see with their own eyes the audience that they are selling to the advertisers. They see the clothes they are wearing, the limos that deliver them to the store, and the number of Harrods' famous green bags they are carrying. They can see the impact that the screens can have on a consumer purchasing decision, or even simply see customers watching content through their Dior sunglasses as they glide up an escalator. Network staff also have relationships with the brands and the advertisers. They have a relationship which has been nurtured and developed so that they are working "alongside" a brand to find marketing solutions to drive brand sales and awareness, which in turn benefits not only the brand but also Harrods as a store. The store is continuously changing, and as part of that development, additional digital screens are introduced as part of new departments and remodels. When Harrods first introduced its digital signage network, it realized that it had to do something special to integrate the screens into the environment. It didn't want screens hanging from ceilings above walkways that look tacky, amateur, and cheap. It invested heavily in each screen installation, with customized reinforced glass, polished steel bezels, additional cooling fans, and color schemes that are consistent with the store's decor. This gave the screens a look of luxury. A lot of care, thought, and attention has been invested in each location to give the advertiser the optimum in presentation. Harrods monitors the effectiveness of a campaign via sales data. It has some impressive results from advertisers who have enjoyed double-digit sales increases during and following a digital campaign in the store. You'd naturally be asking the question, "Well, why isn't everyone advertising on the screens?" The answer to this question involves many factors including, among other things, the following:
• The medium is new and many vendors are unfamiliar with its benefits.
• Vendors are not always sure about where the funding of digital screen ads should come from. That is, is it a marketing/advertising expenditure or an in-store promotional expenditure?
• There are creative challenges associated with messages. For instance, is the message capturing the attention of the customers? Does it have a call to action or an offer? If there is one way to deter advertisers, then it's to have blank, malfunctioning screens. It seems obvious, but so many networks in retail lumber on with as many as 25 percent of the screens nonoperational. No wonder they find selling ads a struggle! Harrods has a "zero tolerance" strategy within the operations team, resulting in the team's touring the store every morning before the store opens checking that all is as it should be. As well, it has invested heavily in preventive maintenance contracts, and has a backup stock of spare screens available, should a screen die and require replacement.
Digital networks can make money for a retailer. Harrods has realized both ad sales revenue and increased sales of advertised products. However, such results take significant investments in time, resources, and money. The future success for generating advertising sales is dependent on improvements in technical reliability of the hardware and software, combined with more investment in content and creativity. Interactivity via mobile/cell phones is clearly part of the future. Harrods is investing in the latest technology, implementing new and unique content that captures people's imagination, and working alongside brands that are prepared to invest to realize the benefits.
DISCUSSION QUESTIONS
1. What are the reasons that Harrods has been successful at selling advertising on its digital signage network and other retailers have not? Why would consumer product manufacturers be interested in advertising on Harrods' network?
2. What are the pluses and minuses for a retailer offering a digital network in its stores?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.