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Have you been to a mall lately? There’s a lot of good news coming from this sector.

First off, you can still count on enjoying one of those delicious sticky cinnamon buns in most malls across North America. Life is good.

$Billions of Mall Re-development
The shopping centre industry is on the move. After challenging times during the great recession, tens of billions of dollars in shopping centre re-development is planned or underway in North America. Simon Property Group for example announced more the $1.6billion dollars in re-development starting in 2011. *

Out with the tired 20th century décor and cluttered shopping environments, and in with creative, modern aesthetic and amenities, and varied forward thinking, architectural concepts intended to elevate the shopping experience.

Of course, the 21st century mall will be a digital environment that will offer mall operators and retailers new ways to engage consumers at the critical point of shopping, and provide shoppers with more options to help them shape their own unique shopping experience.

Digital screens are not new to malls. Indeed, over the past decade, network operators such as Neo, Pattison OneStop, CBS Outdoor, Clear Channel, Adspace, and many others have deployed screen networks in common areas and food courts in hundreds of malls throughout North America.

It would be fair to say that version 1.0 of digital signage in malls was a mixed bag of minor successes, false starts, disjointed communication strategies, mostly unfulfilled revenue expectations, ill conceived physical deployments (screens located out of shopper site lines), technology flops, service breakdowns, bankrupt service providers, etc.

With the economic recovery well underway, it’s notable that many ad-based mall networks such as Adspace have worked diligently to navigate the trouble waters and addressed key challenges - emerging to deliver to new realistic expectations in terms of effectiveness and advertising value. So it’s time to look ahead.

The Next Push – Digital 2.0
The digital evolution at the mall is about to go into overdrive - leveraging new innovative technologies and applications and new content programming that is focused on elevating the shopper experience through engagement.

Several technology manufacturers have partnered with leading software providers and creative content producers and programmers to develop a variety of digital media systems (kiosks, directories, etc.) specifically intended for mall applications.

For example, the strategic and creative experts at Dorsey Digital Media have led, in partnership with Chilin Solutions (formerly Vertigo Digital Displays) and varied software partners, the development of an innovative digital mall directory system that is delivering a new standard of features with the objective of replacing the print directories currently deployed in most malls across North America.

The digital mall directory is multi-purposed and incorporates a variety of advanced features. One screen (70” - 85” screen) is dedicated to mall messaging and third party ads, while the other screen of similar size provides a dynamic presentation of store listings. The directory screen is divided into three zones - the store listing, a promotional zone (specific to in-mall activities and offers), and a third zone for varied content such as news/weather/clock/parking info, etc-keeping shoppers informed. Other organizations in Europe and North America are also innovating digital screen systems delivering a variety of mall specific applications.

Advanced Interactivity and Applications
Where things get really exciting is with the introduction of interactive capabilities and integrated applications. By touching the interactive directory screen, shoppers will be able to access the store listing, find their store of interest, drill down to find the quickest route (map) to a desired retailer, access individual store information, and review timely and relevant promotional retail offers. All presented in a dynamic fashion with broadcast quality motion graphic content.

With the addition of two-way communication (engaging) applications, shoppers will also be able to access electronic coupons and have these pushed out directly to their smart phones. This is a great new way to enhance the shopper experience and directly drive business from the digital mall directory to the retailer - the latter offering new opportunities to deliver valued metrics to retailers and advertisers and in turn, generate new incremental sources of potential revenues.

What is enabling many of these new features is the ability to integrate applications into newly designed, open software platforms. It’s makes sense if you think of the digital mall directory and other advanced digital screen systems as giant I-Pads. The I-Pad is a beautifully designed communication appliance but the real power of this device are the 1000s of applications that have been developed (by a large community of independent programmers) to deliver a variety of cool and practical features to users.

As a giant I-Pad the digital mall directory for example can integrate new programming and content applications onto its existing software platform delivering new features and added value for both the shopper and mall operators. We’re already seeing how social media applications (such as Foursquare) have been incorporated into some placed-based digital screen deployments.

Looking Ahead
Specific to malls, we can see a future where digital screen systems like the digital mall directory become the portals of access to the mall community (retailers, operators, advertisers, other shoppers, friends, etc).

It’s easy to envision advance applications where shoppers could enter and share personal information with the objective of customizing their visit to the mall. For example, digital systems like the digital mall directory can also be fitted to be wireless broadcast hubs - to track the shopper (with their opt-in permission of course) through the mall and push out relevant information and offerings directly to their smart phone - aligned to their preferences and shopping patterns.

Another benefit of integrating new applications to existing platforms is that technology systems can essentially become future proof. No need to completely buy new or different hardware or software in order to have access to new features and applications that may be developed by independent programmers. Of course, planning for the long term in regards to technology remains critical.

For the most part, leading software providers are embracing this open “application” approach and have come to realize that this will enhance their products while delivering added value to their clients.

Like many other teams in the industry, we’ve also looked at other aspects of the mall where digital media could deliver greater benefits. For example, we have a prototype design in development called the digital mall concierge, a sleek, modern, and modular digital media structure that will be positioned as an alternative to the traditional customer service / information desk. This incorporates an in-line hub of interactive screens complemented from above by large format screens for use for promotional communication.

Similar to the digital mall directory, shoppers will have the ability to access the information they want, view and select promotional offerings, and print coupons and gift certificates on demand (the transaction finalized by a service representative) – just a few of the advanced features that can be integrated. The promotional screens will be dedicated to deliver to the marketing, branding, and advertising objectives of the mall and its advertisers.

The Digital Advantage
An important advantage of leveraging digital media technologies in malls is the ability to network all the digital media screens (no matter the configuration) and control them from a central hub. This enables mall and network operators to control each individual digital directory or screen in one mall, multiple malls, regionally, or on a national basis. This flexibility delivers added value to advertisers and enables mall operators to more effectively target shoppers with relevant messaging, offers, and engaging experiences.

The advantages versus print signage are compelling. Digital signage with motion graphics delivers a more captivating visual experience, offers more timely and targeted messaging capabilities, and provides the ability to deliver multiple messages on a single media platform/structure making maximum use of limited mall real estate.

Challenges at the Mall
There are still challenges to overcome in order for mall operators to fully embrace the exciting new opportunities offered by digital signage.

Over the past couple years, I’ve met with hundreds of North American mall managers and mall operators who conveyed a mix view of digital signage. Some are gun shy citing the less then stellar ad revenues they had been promised from ad network partners. Others noted being stuck with obsolete equipment when digital signage partners went out of business or simply walked away from a flawed business arrangement.

The majority though voiced hesitance to move toward greater digital integration due to lack of understanding of what it will mean for them, what’s available, what’s involved, and the complex deployment and cost structures. Simply, many expressed varied levels of risk aversion due to lack of clear information and understanding. Print signage is safe (they understand all aspects of the business proposition) and is easy to fit into their traditional planning processes. From our experience, this has resulted in the need to spend much time educating mall operators as to the merits and potential of digital.

Better Content, Strategic Planning, and More Education
So how do we move beyond the challenges of the past to fulfilling the exciting new opportunities of the digital mall?

Well this process is already underway. Some of the leading mall network operators have in the past few years modified their business models and strategies, and begun the process of making mall management believers again.

Better content (from creative teams that get it) is delivering to in-mall promotional needs (focusing on products and services sold in the mall), screens are being deployed in a more strategic manner including the introduction of new technologies, and new programming and interactive applications are working to enhance the shopper engagement and experience - offering new creative ways for mall operators and advertisers to more effectively reach and connect with their targeted audience.

As the mall industry pushes forward with re-development in the years ahead, its important that mall operators begin to include digital within their strategic thinking.

One basic consideration is to think ahead at what type of cabling and digital network infrastructure (hard wired or wireless connectivity) should be part of the design process during the build or refurbishing phases - allowing for future digital integration. Like ones home, it’s easier and less expensive to run cables, network connectors, and sufficient power sources during a renovation (before walls and floors have been closed up and finished) then to have to tear things up after the fact.

From a planning standpoint, mall operators need to get plugged-in to the digital world and begin consulting with digital media experts who can help them shape a well thought out long-term digital strategy.

The digital signage industry in turn, must continue to educate and provide consultative advice to mall operators – simplifying the complexity, and getting them excited at the current and future possibilities of going digital.

No one can fully predict the future of digital in malls but two things are for sure. The 21st century digital mall is coming to a city or town near you and a tasty “Cinnabon” will be waiting there with your name on it. Don’t forget to first stop by a digital mall directory to see if an e-coupon is available.

About the Author
Stephen Dorsey is the CEO of Dorsey Digital Media Inc., a Toronto-based digital media services provider specializing in Digital-Out-Of-Home (DOOH) solutions for businesses. Established in 2007, Dorsey Digital Media Inc. is led by an award-winning team of seasoned brand and marketing strategist, content strategists, and creative, new media producers with decades of demonstrated success in the North American retail, entertainment, and digital media industries. In addition to providing expert strategic consulting services for DOOH network deployments, DDM produces broadcast quality media content for in-store digital screens, resells licensed music programming and pro audio messaging solutions, and offers network management and installation services for the deployment of retail-based digital media networks. stephen@dorseydigitalmedia.com www.dorseydigitalmedia.com

*ICSC News release, Nov. 2, 2010

great article Stephen! looks like you are strategically positioning yourself to meet the needs of the future malls! this article really explains where things are going within the retail mall environment. thanks for sharing this with me! keep resistor in mind as a content partner for any motion graphics work you will need for these large mall interactive screens!

brian
http://www.resistor.ca
brian@resistor.ca