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R O A D MA P TO CHANGE V-Engineering concept overview (continued) MEDIA SIGNAGE The placement of static media that quickly is taken for granted gives way to dynamic signage including video and audio information and promotions. As high defi nition digi- tal signage becomes more popular, protocols related to digital signage content management will likely be- come standardized. The frequency of digital displays, both machine mounted and wall mounted, are ex- pected to be a source of incremental advertising revenue. PRODUCT INFORMATION Filling machines based on a planogram did not adequately ad- dress the needs of specifi c market segments and thereby gave way to category management (mod- eled after other retail formats). Impending government guidelines mandating the presentation of ac- curate ingredient and nutrient data requires that available products be properly identifi ed and associated with correct product information; the focal point of product recogni- tion software. PRODUCT SELECTION The traditional user interface that involves product selection through button to column location is being replaced by a video touchpad that allows for product information display as well as product selection. Adjustment in the auto-retailing model will position a shopping cart on a video screen enabling shopping fi rst with payment to follow (multiple products; single payment). The implementation of search engine mechanisms and fi lters that contribute to limiting acceptable product choices will promote consumer satisfaction. Formatting will evolve to also include targeted promotions, fl ash sales and dynamic couponing. C ONT INUED ▶ ing targeted messages where and when they seem to matter most; at the point of purchase. Traffi c volume and sales data by time of day (often referred to as day parts) are basic elements used to evaluate media success. Generally, there are three techniques used to deter- mine the impact of digital media on point-of-purchase behavior. These factors being: Sales correlation Intelligent marketing refers to providing the consumer relevant messaging at the point of purchase based on an analysis of personal profi le and day part. Matching POS transaction data to digital content will generate a correlation index between sales and product- specifi c messaging. Different messages will likely have varying impact on purchase decisions, and understanding how unique broad- cast content infl uences consumers from various demographics can be important to menu engineering. Event-based couponing Vending machine messaging that promotes a specifi c product or combination of products may also generate a discount coupon, or "e-coupon," to further infl uence purchase decisions. Media experts claim that this form of promotion conditions the customer to pay attention to broadcast content as there may be a promotion or other benefi t to be gained. Digital signage can present vending an unparalleled sales opportunity, especially in conjunction with the use of QR codes and dynamic mobile marketing campaigns. Net impression tracking An evaluation of the consumer's ability to recall the content of a digital display is termed net impression tracking. When a mes- 52 Automatic Merchandiser VendingMarketWatch.com May 2012 sage is broadcast, an impression is created. Measuring the consumer's strength of recall can be used to evaluate this relationship. This is often a diffi cult metric to compute but can be very meaningful in terms of next step strategies. Often, practitioners report that short messages (as short as 10 sec- onds) may have a higher recall rate than a longer promotional piece. Additionally, the longer the mes- saging at a vending machine, the more likely there will be a service slow down. Digital signage can have a positive impact on vending as it increases the range of information available to consumers at the point of purchase. Some important per- formance metrics for digital signage in vending include: 1) revenue lift resulting from product promotion, 2) purchase transaction time, 3) index of customer satisfaction, and 4) increased number of customers using the vending machine. Digital media represents a powerful tool for location specifi c promotions as content can be remotely managed in real time and compressed for rapid transmis- sion. Vending operators are able to place digital screens in a bezel or slot mount on the front of a vending machine as well as to a machine side panel or away from the machine on a wall bracket. Streaming video technology, in combination with Internet connec- tivity, presents a vending operator with the capability to create a pow- erful network for video advertising, news alerts, and product promo- tion. As new content is available, it can be automatically downloaded from a remote location to vend- ing machine supported screens for immediate implementation. In essence, the placement of digi- tal signage can effectively transform C ONT INUED ▶