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.”
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|
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.
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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.
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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.
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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.
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“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
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