Digital Signage in Taxis - narrow
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Digital Signage in Taxis - narrow
W H I T E PA P E R Digital Signage in Taxis By Richard Slawsky Contributing editor, DigitalSignageToday.com Sponsored by: Credit card terminals in taxis are being utilized for in-car advertising content, expanding the reach of digital signage. N ot too long ago, the main entertainment in a taxi consisted of watching a series of harrowing near-misses as the driver made his way through city traffic. More and more, however, digital signage is becoming a feature of the taxi ride. The customer now has the option of getting news and weather information, seeing advertisements for shops along the route or even playing trivia games. Although it’s difficult to tell exactly where the concept of digital signage in taxis got its start, there’s no disputing that it developed hand-in-hand with the increasing number of credit card payment terminals in taxicabs. “[VeriFone Media Solutions] was doing payment systems for taxicabs, and some of the individuals involved had the vision that this could be something that was content-related as well,” said Court Shannon, managing director with Newport Beach, Calif.-based Media 360 Partners, an advanced TV and digital media agency. The company works with VeriFone to provide content for taxicab digital signage networks. “As a result, those payment screens evolved into content delivery screens.” © 2010 NetWorld Alliance LLC | Sponsored by DataStarUSA New York-based VeriFone, along with Long Island City, N.Y.-based Creative Mobile Technologies and Plano, Texasbased DataStarUSA are among a number of companies providing digital signage in taxicabs. How it works Although different companies have their own version of in-taxi digital signage networks, the various systems typically have several features in common. Digital signage in taxis can be used to convey important information, as well as provide entertainment and advertising opportunities. 1 Digital Signage in Taxis The systems generally feature interactive touch screens, audio and full-motion video. The screens also serve as an interface with the taxi’s credit card payment system. Screen size varies depending on the particular system. Taxis using VeriFone’s system in New York, for example, feature 10-inch screens. Content is downloaded periodically throughout the day and stored on the unit itself. The systems usually start playing when the meter is activated. In some cities, regulatory agencies mandate the playing of information related to taxi policies and procedures. Once those announcements are complete, passengers are free to adjust the volume of the displays or turn them off completely. Content includes a mix of news, weather, sports, entertainment and advertising, delivered via a tabbed interface similar to that of a Web browser. The screens are further divided into a number of elements, each which offers a sponsorship opportunity. On VeriFone’s system, for example, advertisers can sponsor the on-screen clock or individual content tabs. Content can be played by daypart, or even tap into the taxi’s GPS system to play location-based content. For example, a department store can choose to have its ads run when a taxi is within a certain radius of the store. “We can play any of the elements that are in the program based on time of day and geographic location,” said Tom Haymond, executive vice president of media sales © 2010 NetWorld Alliance LLC | Sponsored by DataStarUSA with Creative Mobile Technologies. “The geographic location is pretty specific, almost down to a street corner.” Audience metrics Advertising revenue is generally split between the taxicab company and the company providing the credit card terminal. In many cases, the taxicab company receives a significant discount on the equipment in exchange for signing a deal with a content provider. “[Content providers] may actually provide the hardware for free,” said Alp Sezen, general manager of the embedded platform division of Taipei, Taiwan-based Via Technologies. “In return, they will get a bigger share of the revenue.” Via supplies many of the computer processors that are driving innovation in markets such as onboard computing and mobile communications systems. How many times will an ad be seen? In New York, on average: ¾ A taxi ride lasts 14 minutes. ¾ There are 1.4 passengers per ride. ¾ Taxis have 42 rides per 8-hour shift. That means that: ¾ Advertisements will be run 21 times per shift, and will be seen by close to 30 people. ¾ Considering the number of shifts per day and the number of cabs in New York, a single advertisement could be seen approximately 1.2 million times per day. 2 Digital Signage in Taxis “70 percent of people who advertise on these screens came back and renewed their contract. I’ve never seen those kinds of renewal retention rates. And it’s not because we are that great at selling; it is because it works.” — Tom Haymond, executive vice president of media sales, Creative Mobile Technologies One of the main benefits of in-taxi advertising, experts say, is that it is extremely easy to determine how often ads are viewed. “What I’ve found is that 70 percent of people who advertise on these screens came back and renewed their contract,” Haymond said. “What we saw in New York, looking at the number of times that the screen was turned off compared with the number of fares, the percentage settled right around 14 or 15 percent of the time,” Haymond said. “In all the media I’ve ever been in I’ve never sent those kinds of renewal retention rates,” he said. “And it’s not because we are that great at selling; it is because it works.” “In other markets it is less than that, possibly because of the newness of the concept,” he said. “We are also working on having more interesting content.” VeriFone reported a similar turn-off rate. Because the system tracks the number of times it is activated and how often it is turned off, advertisers can determine almost exactly how many times a rider viewed the content. The average taxi ride in New York lasts about 14 minutes, with an average of 1.4 riders per ride. Taxis average 42 fares during an 8-hour shift. Extending the calculation, advertisers could expect to see their ad run 21 times per shift and be seen by close to 30 people. Multiply that by three shifts per day and more than 13,000 cabs, and a single advertisement could potentially be seen close to 1.2 million times per day. © 2010 NetWorld Alliance LLC | Sponsored by DataStarUSA The final say Many taxi drivers have been resistant to the idea of being required to accept credit cards, and since in-taxi digital signage networks rely on those systems, digital signage has faced some resistance. Three trends helped change the minds of taxi drivers. The first was a major enforcement effort by the Taxi and Limousine commission in New York, which conducted sting operations and disciplined cabbies who refused to accept credit cards. Other cities have followed suit. The second trend, Haymond says, was that that the volume of taxi ridership increased, both because people who normally don’t carry cash were able to use their credit cards and because many companies in New York halted the practice of hiring car services for trips around town. “That was really evident last year during the economic downturn,” Haymond said. 3 Digital Signage in Taxis “What we saw in New York was that the private car services through the first half of the year were off something like 30 percent, but taxi fares were either flat or slightly ahead of the previous year.” And third, drivers realized they were making more money on tips when riders paid with a credit card than when they paid with cash. About the sponsor: DataStarUSA provides technology deployment and maintenance programs for customers across the North American continent in markets ranging from retail, financial, telecom and healthcare. DataStarUSA is responsible for the deployment and maintenance of the key technologies Fortune 1000 companies are depending on to reduce their cost of operations and gain competitive advantages in their core businesses. “When riders place their fares on a credit card they tip more, just as is the case in the restaurant industry,” Haymond said. “When it became clear that that was the trend, I think drivers became less and less resistant to accepting credit cards.” © 2010 NetWorld Alliance LLC | Sponsored by DataStarUSA 4