posted by Nate Nead on January 12th, 2009 • No Comments

RFID tag integration for digital signage targeting and information display

If we were to throw privacy out the window and just talk about the "far-out" technological possibilities of RFID and digital signage, we may well see how both technologies will one day be used symbiotically. As signage morphs into a more dynamic content medium, we'll certainly see more integration with other devices like mobile phones. In fact, RFID chips installed in mobile phones may one day empower digital sign networks to become as targeted as Internet searches, giving us a veritable digital "cookie" for dooh. RFID integration with digital signage is not a new idea, but it does warrant discussion as one of those "techie" ideas that I love to speculate about. The "wow" factor usually doesn't bring revenue immediately, but eventually $$$ can be gleaned the technologies that were once considered "out there."

In addition to the "out there" aspects RFID integration with of digital signs, it will be important to note that RFID integration with digital screen advertising can also be used for product information display. RFID tags embedded in specific merchandise within a venue can trigger specific content to be displayed on the screen, when the items are brought into proximity of the RFID tag reader. This type of RFID technology can be useful in hundreds of applications.

What is RFID and how does it work?

RFID stands for Radio Frequency Identification. An RFID device is usually known as a "tag" or "transponder." RFID technology requires both an RFID tag and reader. The RFID tag can be incorporated into anything: a product, an animal, a person, or a cellular phone. The device is picked up by a reader using radio waves. The signal allows for identifying whatever information is held in the tag. Once the information is read it can then be interpreted for a specific purpose. The tags are very effective and can be read from fairly far distances.

RFID tags contain two parts. One is an integrated circuit for storing and processing information, modulating and demodulating radio frequency signals. The second is an antenna for receiving and transmitting the radio signal.

Uses of RFID Technology

RFID technology is currently used a great deal in supply chain management to track company inventory. Wal-Mart is a great example of this. With such tight controls on their merchandising systems, Wal-Mart can easily track inventory with the use of simple and cost-conscious RFID tags. The uses go far beyond retail asset management. In fact, I have a couple of friends who live in the Washington DC area who have RFID tags embedded into their vehicles which allow them to autopay for their highway tolls. The uses of these devices are virtually endless. Recently, RFID tags have been implemented into cellular phones by a company called SHIFD. Shifd is a story for another day.

We've determined the uses for RFID technology are vast. Similarly, the technology itself is almost as vast as its uses. For instance, there are several different types of RFID tags that can be used, with ranging functionality based on the specific tag. With such vast uses, it is foolish to conceive the digital out-of-home segment not benefiting from RFID.

RFID with Digital Signage

The possibilities of RFID are seemingly limitless. Integrating RFID with a digital signage display can pose very beneficial in the advertising world. Many companies have already implemented this technology for the purpose of pushing their desired products. It can be very useful for targeted advertising for specific merchandise with embedded tags. An example of this would be DVDs in a store with tagged with RFID. When a consumer lifts the video from the shelf nears the "reader" on the LCD or digital display, the screen begins playing the trailer of the film, while information on the film is rotating through a sidebar or ticker. This type of targeted advertising would benefit just about any retail venue where differing products were being pushed.

Using RFID in Cellular Phones for Targeted Digital Signage Advertising

When a cellular phone is activated how difficult would it be to register the RFID tag inside the device? Not very. In fact, it's a simple scenario: embed an RFID tag as standard in mobile devices and embed an RFID reader as standard in digital signage media players. Well, I suppose it's not that simple. In theory it's simple, in practice it is, in fact, extremely complex. Of course, getting the information on the RFID tag may take some coaxing. Some purchasing a new A new PDA or cell phone would simply need to answer a few demographics questions when the phone is first purchased by that individual:

In what year were you born?

Are you male or female?

In what city do you currently reside?

What is your favorite color?

...Plus any other question that could be used in demographically targeting an individual for advertising purposes.

After determining the appropriate answers to these questions, the RFID tag registers the specific demographics of the individual. Then, when a specific tag transmits to an RFID reader, the digital display reads and interprets the tag of the individual in closest proximity to the screen and places content on the screen matching their specific demographics. When that individual approaches a digital signage display with an RFID reader, the RFID tag sends a signal to the screen which interprets the data and displays content according to the demographics on the individuals' RFID tag embedded in the mobile device.

So, in theory, the ad management system on such a digital signage network would be highly targeted and complex, allowing advertisers to enter a portal and specifically target on a local/national basis by age, gender, race, and personal preferences according to the tags that come in proximity to the screen.

I know, I know, it does sound a bit like "1984," or the notorious Tom Cruise flick "Minority Report," but let's face it, we live in a world of decreasing privacy. My grandparents will be eternally in fear because of movies like "The Net," which showed the Internet as an identity thieving tool. In the same vein, it always seems the younger crowds are a bit less reticent to have their privacy invaded and their personal information dispersed to the world.  And, with the sign network gleaning only generalized demographic information without specifically knowing who the person is and what their phone number and address is, we may not be quite as "1984" as we originally thought.

In fact, the RFID tag integration may well go far beyond digital signage, into combined use with electronic jukebox systems, smells/perfumes, and social media sites like Facebook and MySpace. Because one day many digital ooh providers will need greater metrics to compete, RFID could one day bridge the metrics gap.

Technical Issues

Many questions creep into the practically minded when thinking about this subject. Like: what about multiple persons in close proximity to the signage displays? When more than one RFID chip is present, which tag takes priority over this other? These questions would be very important in determining what content was specifically displayed on the screen. What about storage space? If you're talking about storing advertisements on a media player for every type of demographic, how do you manage such a database of advertising information, especially if it's all high-def? Isn't that going to be a bandwidth hog? Simply put, the answer is yes. Perhaps the most alarming question on every practical person's mind has to do with consumer privacy. What about privacy? What if people don't want to register their demographic information into a database? What will the standards for adopting RFID into mobile phones be? Who will help implement such standards? How will the technology be regulated? In some ways it seems a summit that would be almost too daunting. But, where there is a will, there's usually a way. And although there are technical ways to go around some of these issues, the concerns and technical hurdles loom quite large.

Privacy Issues

I suppose it is unfair to have a post outlining how RFID will inundate the privacy of individuals, without discussing the possible issues associated therewith. Some of the crazy ideas outlined in this post may never be implemented. Not necessarily because technology is too slow to adapt, but because people are too slow. In fact, I'm not too keen on the idea of giving out more and more of my information, only to have it used willy nilly by some out-of-home advertiser.

So, the verdict is still out. In reality, the case has not yet even been to trial. Recently we've seen uprising over outdoor electronic billboards in several regions of the country. You think outdoor digital billboards are obnoxious, try a screen that calls you by name as you walk by and solicits your attention for your favorite wares. Annoying? Possibly. Powerfully awesome? Most definitely.

RFID technology is to targeted out-of-home as Google is to online search.

A digital signage system integrated with RFID on mobile devices may still be "out there," but those willing to continually push the technology envelope may benefit greatly from such a stellar techno-combo. Such a technology would also create a signage network that acts more like a measurable online "cookie," giving advertisers the ability to specifically track their digital signage ROI. Much like Google has done for the internet, RFID may one day allow for specific, localized, and targeted advertisements which can be tracked. And we haven't even begun to discuss how this will work when cell phones become our credit cards...that's a discussion for another day.

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    posted on January 12th, 2009 • No Comments

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