Enable Dynamic Visual Experiences and Drive Business Sustainability With Digital Signage and IPTV

A digital transformation technology report

Enable Dynamic Visual Experiences and Drive Business Sustainability With Digital Signage and IPTV

A digital transformation technology report

EXECUTIVE BRIEF

Analyst Perspective

Engage fans inside and outside the venue with dynamic visual experiences

The sports entertainment industry must focus on creating modern and immersive experiences at the venue as going to a live event is a thrilling and ever-evolving experience. The fan experience is much longer than it has ever been – it doesn't begin when they enter the venue but the minute they buy their ticket, whether that is on presale or days afterward.

IPTV (internet protocol television)–driven digital signage can reinforce branding and engage with passersby and arriving fans to create excitement in the community before fans even scan their tickets. Within the venue, displays providing information about seating, services, amenities, and other facilities make fans feel right at home with the rest of their sports family. Displays can also be used throughout the venue to broadcast the game in real time so fans don't miss a minute of the game, whether they are getting food and beverage or on their way to the restroom.

Not only do digital signage and IPTV create immersive and exciting fan experiences, but they are also essential to maintaining a healthy and sustainable business, as the sports entertainment industry is no stranger to the digital economy. Within this digital-first world, the industry must create more successful stadiums to boost margins and remain competitive. The evolution of connected venues is creating the modern experience that sets sport teams apart. Fans are given more enjoyable, excitable, and memorable experiences through technology such as digital signage and IPTV while venue owners are gaining greater operational efficiencies, optimized commercial opportunities, and insight into fan behaviors (Samsung for Business, 2022).

Elizabeth Silva
Research Analyst, Sports Entertainment Industry
Info-Tech Research Group

Executive Summary

Your Challenge

• Management lacks a framework to rethink how your organization should digitally transform the venue, which causes annual planning and innovation to become an ideation session that lacks strategic focus.
• The team is struggling to find the time to research the digital signage and IPTV market in depth and does not see the value in digital signage and IPTV, putting the business at risk for missing out on a new digital opportunity.
• It is challenging to determine what vendor in the market offers the right features, functionalities, and opportunities for the venue.

Common Obstacles

• The team doesn't know where or how to begin or how to engage the right people, model the business, and drive value for digital signage and IPTV.
• Digital transformation has accelerated across every industry, organization, and department, and CIOs must maneuver this change to keep pace in a digital-first world.
• The business and IT often focus on a project, ignoring the holistic value that it will provide today and in the future.
• Digital signage and IPTV have many unique requirements and maintenance needs that must be considered.

Info-Tech's Approach

• Determine how the business can create value through the sports entertainment business capability map and how digital signage and IPTV can enhance, improve, or create value.
• Use a fan persona and journey mapping exercise to determine opportunities for digital signage and IPTV.
• Through vendor research and interviews, Info-Tech has identified the various features, functionalities, and digital opportunities that each vendor offers, and implementation can be fast tracked with Info-Tech's Rapid Application Selection Framework.

Info-Tech Insight

Digital signage and IPTV create unlimited digital opportunities for personalized and unique fan experiences, as they allow venues to remain competitive, increase margins, and gain insight into fan behaviors to deliver in a digital and experiential economy.

Digital signage and IPTV deliver significant value

What are digital signage and IPTV?

• Digital signage is any kind of electronic display for the purpose of displaying content such as digital images, video, streaming media, and information.
• IPTV (internet protocol television) is a process of distributing rebroadcast television and/or synchronized audio-video (AV) content over an intranet or internet.
  (Media Star Systems, 2021)

Digital signage and IPTV enable fan experience and engagement

• Digital signage and IPTV bring an element unlike any other that engages fans as soon as they arrive at the venue. They catch fans' attention and encourage them to stay near the venue as anticipation for the main event grows. Displays can show other sporting events, information, hype videos, wayfinding, and much more.

COMMUNICATE WITH FANS THROUGHOUT THE VENUE

The main return on investment of digital signage and IPTV is fan retention and engagement. They encourage fans to spend more time at the venue and be more engaged with live action and related content, all while serving as a steward to fans.

THIRD-PARTY ADVERTISEMENT

For venue operators, selling advertisement space on their displays to external companies or organizations is an attractive option that generates more revenue.

REACH VIP FANS

Provide exclusive and premium signage-enhanced fan experiences in member lounges and luxury suites with large displays to allow fans to enjoy the game while they are away from their seat or dining.

The global digital signage market is projected to grow from US$16.3 billion in 2021 to $27.8 billion by 2026; it is expected to grow at a compound annual growth rate of 11.2% from 2021 to 2026.
– MarketsandMarkets, 2021

"In a report from Capgemini, emerging technologies were found to enhance fan enjoyment, with 70 percent of fans stating that technology contributes to a better game day experience."
– Samsung Business, 2022

In today's digital-driven world, disruptive innovation is inevitable

Digital signage and IPTV drivers

• Digital marketing techniques are rapidly evolving and taking over traditional marketing methods. Digital signage reaches 70% of the public every year.
  
• This technological drive is shifting the way brands communicate as they ultimately try to provide better in-venue experiences. The top three reasons organizations invest in digital signage are as follows:
  • Fan experience
  • Fan engagement
  • Branding and advertising

Other technology disruptions driving fan experience, engagement, and branding and advertising

• Organizations need to use the power of the cloud and mobile connectivity to deliver media-rich experiences to fans by integrating these technologies into the in-venue experience. Fans are generating and consuming media-rich experiences through apps, wearables, and smartphones in the venue for wayfinding, services, and on-demand support. Mobile, AI, Internet of Things (IoT), and digital signage all have a part to play in delivering rich fan experiences.
  
• A convergence of interactive technologies is driving change. Mobile devices, touchscreens, signage, TV, and audience recognition and measurement are impacting traditional approaches to signage and solutions within the market.
• Organizations must look up from their immediate concerns and think outside the traditional signage space to take advantage of disruptions.
  Source: Computaleta, n.d.

"30% of customers say digital signage influenced their purchasing decision."
– Omnivex

"66% of consumers report that digital signage catches their attention."
– Omnivex

Transform the venue to compete in a digital-first world

Venue digital transformation journey

Effectively use digital signage with the AIDA model

The AIDA theory, by Elias St. Elmo Lewis, is an advertising theory that highlights the different stages within the sales funnel.

The AIDA model can be visualized as part of the fan journey, from before a fan even considers a purchase to when they make the all-important purchase.

Source: Trou Digital, 2021.	Part 1 Attention Create awareness of the product/service.
	Part 2 Interest Potential fan becomes interested in finding out more about the product/service.
	Part 3 Desire They begin to favor the product/service and want it.
	Part 4 Action They form an intent to purchase – whether that's ordering something, booking a demo, or getting a free trial.

Create awareness of the product or service

Part 1: Attention – the first part of the fan journey

This is where fans become aware of the product/service. The organization needs to think about what their target audience will be and what they want. Marketer and technology expert Allan Dib states that focusing on the problem the organization wants the product/service to solve rather than what it does will make the marketing message much clearer and will make it more desirable to the audience.

Digital signage is a great way to grab attention, but having an effective strategy is still important. Having a mixture of high-quality content and knowing the target audience is the best way to approach this.

To grab attention effectively:

• Know the target market:
  • Personas, demographics, psychographics, geography
• Outline the messages to the target market:
  • What pain points/challenges is the product/service trying to solve for them
• Cover what media is going to be used

Source: Trou Digital, 2021.

Scenario Example:

Instead of saying "buy a suite to never miss a minute of the game," say something like "save time waiting in lines and spend more time watching the game," presuming the fans' pain point is they are spending too much time in lines and missing out on the game itself.

Examples of media:

• Videos
• Animations
• Facts
• Limited time and countdown offers
• Live feeds
• Social media
• QR codes
• Reactive content
• Strong branding
• Company messaging
• Questions
• Reviews

Potential fan becomes interested in the product or service

Part 2: Interest

• Interest is when the fan starts looking at the product/service to learn about it and see if it is a good fit for them. An example in this stage is using digital signage to promote what they are interested in.
• It's important that the content is easy to read and well-structured to maximize the chances of it being seen and read.

Scenario Example:

Having a display that says, "we sell high-protein vegan food" at a concession stand that is targeting vegan fans will result in fans concluding, "yes, this is for me."

Source: Trou Digital, 2021.

"More than 50% of fans said they would attend more games as a result of a tech experience."
– Samsung for Business, 2022

Fans begin to favor the product or service and want it

Part 3: Desire

• Desire is where the consumer develops a favorable disposition toward the product/service, and they want it.
• Having a unique selling point (USP) will assist in making the products/services more desirable and standing out from competition. Try to include USPs and make them known. Highlight the organization's differentiator in the market, think about what is important to the fans, and let it shine through the content.
• USPs that are trending right now are:
  • Sharing new insights or industry facts about the products/services on displays
  • Being sustainable/carbon neutral
  • Providing support and service to ensure fans are looked after

Source: Trou Digital, 2021.

Info-Tech Insight

Once the fan turns into a buyer, delivering a world-class post-sales experience is important to retain fan business and loyalty. This can be done through frequent communication and adding value each time content is displayed, such as providing advice, free resources, or another offer. This will keep the fans engaged in the content. Increasing the fan lifetime value, such as by implementing a loyalty program, upselling, etc., is also a great way to retain fans.

Fans form the intention to purchase the product or service

Part 4: Action

Action is the final stage where the fan will be making the decision on whether they purchase the product/service or not. To encourage action, the organization will need a call to action (CTA).

The main goal of a CTA is to provide the fan with the next step.

Examples of CTAs on digital signage are:

• QR codes indicating "scan here"
• A "call us" message with a phone number
• Content featuring a "buy now" button
• A message telling the audience what to do next, such as visiting a website
• Buttons that tell the user to press them to take an action such as seeing a map for wayfinding, seeing more info, booking a meeting, etc.

On displays, the organization will want to include a CTA, whether the goal is to sell, direct, or generate calls and sign-ups, as a CTA is crucial to generating an action.

Scenario Example:

Buttons are often used in emails or landing pages, saying, "book now," "contact us," "get your free trial now," etc.

In the offline world, CTAs look like displays saying, "pay here," "post here," "sanitize here," etc.

"One study found that adding a CTA button to their article templates increased conversions by 83%, and it boosted ecommerce conversions by 22%. Copyblogger found something similar; when their CTAs looked like buttons instead of plain text, they saw a conversion rate increase of 45%."
– AdEspresso, by Hootsuite, via Trou Digital, 2021

Engaging fans outside and inside the venue will create the ultimate 360-degree fan experience

Outside the Venue

1. Entertainment areas: Use displays in prime entertainment areas outside the venue as a destination to get fans hyped up for the event.
2. Billboards: Draw fans into the venue and engage them as they drive to the venue with billboard displays. Strategically place these billboards along major roadways near the venue for maximum effectiveness.
3. Street displays: These are displays that can be placed along streets for advertising and timely information at eye level, where they are most likely to influence fans traveling through public spaces.
4. Parking displays: Parking displays can integrate seamlessly with existing networks and architecture while providing vibrant text and images for traffic control.
5. Ticket window displays: Displays for ticket windows and queue areas help manage crowds and advertise upcoming events at the venue. Use them for wayfinding, helping fans find ticket lines, etc.
6. Marquee displays: Develop a connection with fans as they pull up to the venue with a huge display at the entrance of the venue providing team-branded content, game-day information, entertainment, and upcoming events.

Inside the Venue

7. Lobby/entrance displays: Large welcome displays create great opportunities to immerse fans in team pride as soon as they walk in the door.
8. Concession and merchandise displays: Concession stands can use displays to create menu and merchandise boards and provide real-time advertising, all while updating fans with the main event as they're away from their seats.
9. Club/suite displays: Displays within clubs and suites provide a premium and exciting environment for fans to watch the game in high resolution. Fans can celebrate with the crowd in the stands when game prompts are synced to show throughout the arena while also keeping with other games happening.
10. Ribbon displays: Ribbon displays are meant to be placed around the venue in whichever shape
    and size the specific venue may be.
11. Main video displays: Venues are installing bigger and bigger main video displays as they become the center of attention for game replays. These displays have endless opportunity, from sharing live video and stats to opportunities for sponsors and advertising.
12. Press conference displays: Digital signage is starting to replace static canvas backdrops at conferences as it presents better on TV cameras and sponsors' content changes seamlessly.

Inside the Venue

13. Auxiliary video displays: These displays complement the main video displays by providing a complete system integration for an overall, venue-wide experience. They allow for additional sponsorship ads and moments of exclusivity.
14. Fence displays: Fence displays are meant to bring an extra dimension of excitement to the game-day experience by providing crowd prompts, stats, advertisements, and video clips to any fence.
15. Vomitory displays: These displays are typically placed above the team entrance onto the field where they can display advertisements, animations, stats, etc., igniting the experience.
16. Field-level displays: These are fence displays that are at the field level for advertisements, crowd prompts, etc.
17. Stanchion displays: Maximize advertising space by using displays right next to the action of the game. These can be placed in strategic areas of the venue, giving prime exposure to sponsors and creating increased attention to ads.
18. Score table/dasher displays: Dasher displays are a promotional entertainment tool that provide excitement for fans directly in the dasher board of the game.
19. Centerhung display: This display is placed within the center of the venue, providing fans with creative display for a versatile experience.

Unique requirements of digital signage and IPTV to drive success and profits

LOW LATENCY

Latency in this case refers to the time delay between seeing and hearing something live in action vs on TV. Since live games are typically loud, it would be awkward to have a high latency or delay for those viewing on a display in suite compared to those watching the game in the stands. Therefore, low latency is a critical requirement. Less then 500 milliseconds of end-to-end latency across all devices is preferred. The main challenge for sports venues is achieving low latency and a high quality image at the same time.

CONTENT MANAGEMENT SYSTEM (CMS)

A CMS is the most critical management tool required for effective administration. It provides the ability to easily manage, modify, and display all graphical, streaming, and data-centric content to any player or group of players. A CMS also provides the ability to monitor, troubleshoot, and fix player network connectivity and playback functionality and reports.

INTEGRATIONS

One of the key points of digital signage and IPTV is the reliability and capability to integrate with the users' own systems, whether it is an off-the-shelf system or a custom application created by the business. Each sport is different and has different use cases for third party integrations.

SYNCHRONIZED PLAYBACK

If there are multiple displays visible from one location, each player must decode and playback all streaming and content in sync, with zero latency in image presentation between players. With so many displays visible in one location, any unintentional change or drift in display content can be visually disconcerting, causing fan disengagement. Intentional synchronous change of screen content across many displays can create a dynamic visual opportunity that draws immediate attention to the screen.

ROBUST EDGE DISPLAYS/PLAYERS

With the unique variety of environmental conditions that venues reside in, it is critical that displays and players are robust. Conditions include:

• Full or partial outdoor exposure to the elements of weather (cold, hot, sun, moisture, dust, etc.)
• Fan-less chassis and flash-based storage
• Mounting locations higher than 10 feet, requiring a vertical/boom lift or scaffolding to access
• Minimal physical attention once installed
• Displaying multiple layers of animated content while efficiently decoding one or more IPTV streams
• Needs ability to be powered on/off across the network

EFFECTIVE NON-EVENT DAY FUNCTIONALITY

As most venues are multipurpose and host a variety of events, it is important that the digital signage and IPTV can be used for other hospitality services outside of game days.

Unique requirements are:

• Easy management of hospitality and meeting space content for customer branding and presentations
• 24/7 scheduling and automation of content and displays
• Easy viewing and error-free integration with third-party AV control systems

Source: Sports Video Group, 2016.

Properly operating and maintaining digital signage can be difficult but is worth the effort

Ongoing maintenance is a key component of any digital signage and IPTV operating plan. As the organization relies more and more on digital signage and IPTV to market the products and services and to engage and entertain fans, signage is only going to be effective if it's attractive and functioning properly.

CLEANING DIGITAL SIGNAGE

Since the COVID-19 pandemic, fans are more conscious of the cleanliness of touchscreens and other digital signage devices. Displays should be cleaned regularly with screen-safe antimicrobial wipes. Digital cleaning services are also available in the marketplace and can be added as a monthly or weekly service. This is valuable for high-traffic areas. Displays should also be dusted periodically to ensure the fine particles don't interfere with the operation. Outdoor digital signage also requires routine inspection of the supporting and protective structure to ensure they remain waterproof.

SOFTWARE MAINTENANCE

Digital signage and IPTV software should be kept up to date and patched to prevent glitches that could affect the performance and uptime of the equipment. Security patches are also extremely important as digital signage and IPTV are connected to the network. There is a risk of security threats or hackers taking control of the digital signage content and using it as an entry point to the entire network of the venue. Organizations should do periodic software reviews to determine if the software continues to meet the IT and business requirements.

HARDWARE MAINTENANCE & REPAIR

Sports entertainment leaders should invest in high-quality commercial-grade digital signage and IPTV equipment that's designed to operate 24/7 in unique and harsh environments. However, even the best equipment can fail. Leaders should still have a plan for maintaining their equipment, performing repairs, and replacing equipment if needed. Marketing and IT teams often do not have the knowledge or staff capacity to address issues in a timely manner, negatively impacting the fan experience and the value of the digital signage and IPTV investment. Maintenance of digital signage and IPTV may be overlooked, and this is one of the biggest obstacles faced in this initiative.

NETWORK MONITORING

As most digital signage is in public areas, it's important to secure the network to restrict physical access. Ensure that all screens are adequately secured to the wall and all attachments are difficult to access and remove. Keep all public players in a locked, break-proof enclosure and if possible, keep them out of sight. Also, make sure all PC ports and connections are secured. Additionally, monitor the signage network for the up or down status of display endpoints to prevent blue/dead screens from appearing and to verify if content is being displayed on the signage endpoint to ensure visual experiences, advertisements, etc., are being displayed properly.

Source: Sage Net, 2021, Broadsign, 2017.

Be security conscious and triple-lock the digital signage and IPTV

Sports entertainment leaders should be security conscious when it comes to digital signage and IPTV to ensure that the content being streamed over their network is not going to be illegally accessed, copied, hacked, or tampered with in any way. Solutions should have basic security features such as digitally signed playlists, selection lists, and media lists that the system administrator can use to control the selective viewing of content on different screen outlets. More robust solutions will have additional locks and keys where they can prevent unauthorized access to media files, livestreams, and other content as its distributed.

HDCP PRO PROTECTED CONTENT

The HDMI output on a video "source" device provides a digital video and audio signal that allows it to provide a "perfect" TV picture to a TV display. The TV display then takes the "perfect" picture, scales it, and shows it on its own display. To prevent the HDMI digital TV picture being illegally reproduced, the digital signals on the HDMI output are frequently encrypted. The encryption system used for this is called HDCP (High-bandwidth Digital Content Protection) and it is administered by Digital Content Protection LLC (DCP LLC).

PRO:IDIOM-PROTECTED & AES-ENCRYPTED CONTENT

Pro:Idiom is a proprietary content encryption system that is predominantly used in the US hospitality industry. Typically, "low value" TV channels are provided unencrypted, but high value HD TV channels are encrypted with Pro:Idiom. AES (Advanced Encryption Standard) is an industry standard encryption process that is used as the underlying encryption "engine" of many branded encryption systems. In an IPTV/digital signage network, AES can be used to protect assets if they are not already being protected. AES protection can be used in addition to control user access to content according to the user or screen identity.

NETWORK SECURITY

When placing digital signage and IPTV on a network, it's important to be conscious of overloading the network. This can cause disconnects, frequent timeouts, and drops, making the network and by extension content playback unreliable.

Consider installing a separate logical network for the signage to remain PCI compliant and mitigate cyber risks.

Info-Tech Insight

Triple-lock the digital signage with all three security systems as they can all be integrated into a single IPTV/digital signage system so that they are easy for the installer and system administrator to implement and are transparent to users in normal use. Together, these security locks can create the most secure but easily configured digital signage and IPTV.

Source: Media Star Systems, 2021; Digital Signage Today, 2020.

Consider the operating model for digital signage and IPTV

Digital Signage and IPTV Operating Model Illustrative Example

DIGITAL SIGNAGE OPERATING TEAM It is important to consider the team that will be responsible for operating and maintaining the digital signage. A leader for this initiative may have been identified already, but they cannot work in a silo. Decide on a team of individuals that should be responsible for the daily and key tasks to ensure upkeep of the hardware and software. IT will play a role in this initiative but will need to collaborate with other departments, such as the operations management team, to properly support and maintain the signage. IT & IT SECURITY DEPARTMENT The IT and IT security departments own and manage the digital signage and IPTV system to provide security, ensure proper network connectivity, and enable the rest of the business to be successful as a user of the signage. IT and IT security are the back-of-house administration team that takes care of the items end users would not see, such as device protection, end-user and consumer protection, and auditing. OPERATIONS/FACILITIES DEPARTMENT The operations/facilities department may be partially responsible for the installation and maintenance of digital signage and IPTV because the department is equipped with the correct team to do so. The IT team may own a project, but that does not mean they are exclusively responsible for every initiative that must be done to meet the needs of the business or complete the project. Some vendors/third parties may also provide the installation and ongoing maintenance of digital signage and IPTV.

Note: Operating models vary per organization depending on size and business needs. This is only an example of the most high-level and generic operating model.

Digital signage and IPTV technical architecture illustrative example

Note: System inputs, outputs, and architecture vary per vendor. This is only an example of the most high-level and generic implementation.

Visual experiences don't stop at digital signage

Consider the art of the possible with other signage-related innovations

The opportunities revealed by digital signage overshadow the challenges

Measure the success of digital signage

Source: Zendeck, 2022.; CFI, n.d.; Disruptive Advertising, 2020; Personify, n.d.; "How to Calculate Recurring Revenue," Salesforce, n.d.; "How to Calculate Customer Churn Rate and Revenue Churn Rate," Salesforce, n.d.; Hubstaff, 2020.

Digital signage and IPTV benefits

IT BENEFITS

• Enhance the fan experience by creating 360-degree in-bowl experiences no matter where the fan may be in the venue.
• Increase revenue through third-party advertising and developing unique interactive marketing messages.
• Provide personalized experiences for suite and VIP fans through vibrant digital signage and services.
• Remain competitive by maintaining a healthy and sustainable business in the digital economy by continuing to advance in digital experiences.
• Gain insight into fan engagement behaviors through digital signage impressions.

BUSINESS BENEFITS

• IT will be seen as a valuable partner and will enable the success and transformation of the business while elevating the CIO's influence with the leadership team.
• The business will invest in technology that enables a holistic and seamless fan experience.
• Gain insightful data and analytics through digital signage reporting.
• IT and marketing departments can begin collaborative work with a digital signage initiative, broadening the IT department's expertise and role within the business.