Besides enhancing security and taking preventive measures to prevent offenses, video recording also enables visitor video analytics.

This is a treasure trove of information for the marketing department. If the available information is used correctly, it is possible not only to increase the flow of customers but also to raise the average check, integrate personalized advertising, and optimize trading and working processes. All this, in sum, allows increasing profits, saving costs, which is the main goal of any marketing campaign.

Why video analytics is needed

Three main categories of input data can be identified, which video analytics allows obtaining:

1. Demographic statistics. You can find out the total number of visitors, what percentage of them are men and women, adults and children. This alone will help form an accurate target audience for future advertising campaigns, such as digital advertising on digital screens.

2. Tracking visitor map. Video analytics allows, for example, building a “map pattern” of the average visitor and optimizing this route so that a potential customer encounters the most relevant products more often. This tool has been popular among the largest retailers for decades. But modern video analytics allows integrating it literally into any store using software for digital screens.

3. Integration of personalized advertising. For example, video analytics will show that in the morning the main flow of customers is men aged 25 and older, at lunchtime — the same number of adults and children, in the evening — it’s family couples. Based on this, relevant advertisements will be displayed on digital screens.

And it is worth noting that video surveillance will also help monitor the overall situation in the trading hall. For instance, in a supermarket, it will indicate when one of the shelves is empty and additional products need to be added. The load on the staff will be reduced, which will positively affect the optimization of all labor processes.

Another option: the system will indicate that one of the visitors is from a conditional black list. For example, previously caught stealing or attempting to deceive the staff. It is no secret that in large stores, losses from theft can reach up to 15% per month, as criminals mainly steal expensive items. Video surveillance with video analytics will significantly reduce such losses.

Many mistakenly believe that all these modern technologies are available only to big businesses. But no, the prices for equipment and specialized software are now more than affordable. By the way, here you will learn how to integrate Digital Signage into your business with a limited budget.

How it works: technical details

Ordinary video surveillance is needed for video analytics. However, it is preferable that the video signal is immediately received in digital form: this eliminates the need for conversion, which increases delay.

The number of video cameras for an object is selected individually. The main goal is to ensure a good view with sufficient lighting in the area through which all visitors pass. The best place is right at the entrance. If there are multiple entrances, the same number of surveillance cameras will be needed. Place them on the ceiling at an angle of 45-60 degrees. The main thing is for each visitor to be fully in the frame, with their face clearly visible: this is necessary for successful visitor recognition by the software.

The video signal from the surveillance system is transmitted to a server where the analysis and image processing take place. Based on the data, counting and gathering all necessary information is conducted. There are cloud solutions that allow all this to be done automatically. Therefore, purchasing equipment is not mandatory, and cloud payment is usually subscription-based. This is an advantage for small and medium-sized businesses. If a full-fledged video surveillance and analytics system was previously inaccessible to them due to high costs, the integration of cloud solutions opens up such opportunities without creating a significant budget burden.

As a result, the client receives a detailed report on visitors. All this data can be sent to the marketing department, where they will develop an optimal advertising strategy to convert it into profit. There are many ways to use this data.

It is not necessary to store all recorded material. As a rule, only video from a few key cameras is recorded for security purposes and stored for 5-30 days. Again, cloud storage can be used for this now. Therefore, installing a server is not necessary if the facility has constant high-speed Internet access, preferably with an emergency power supply system.

Varieties of video analytics systems

There are conditionally three main variations of video analytics, which differ in the location of the analysis software:

1. Embedded. This refers to IP cameras that already have software for video data analysis. The advantage of such systems is their small size and low cost. The drawbacks include the limited functionality of the installed software. Typically, they can only automatically start recording when motion is detected or activate night mode in low ambient light conditions.

2. Server-based. This system consists of video surveillance and a separate server that receives all the signals, which are then subjected to video analysis. The main advantage of this solution is its customizable functionality, which can be further expanded using various software combinations. The disadvantage is the cost of the server and software development. Maintenance of all this is quite expensive.

3. Cloud-based. The principle of operation is the same as in server-based systems. The only difference is that instead of a physical server, a virtual server (or even a set of them) is used. Video signals are sent to it, analyzed using software, and then the sorted information can be sent to the marketing department for further research and data analysis.

Which option is better is selected individually for each field. Some may simply need visitor counting, others — demographic analysis, and still others — integration into automatic Digital Signage management.

What equipment needs to be used

If a video surveillance system with data analysis is being launched in test mode, it is recommended to prefer cloud servers. This is convenient, quick to set up, and the financial investment is $20-40 per month per camera, which will allow you to assess the system’s effectiveness and understand its basic principles of operation. Many cloud video analytics services even offer the opportunity to test their functionality for free (with some functional limitations), and later you can switch to paid plans.

For large commercial sites, it is better and more reliable to use your own server. However, you will definitely need a specialist for equipment maintenance and a programmer (if you do not plan to use third-party software). The required equipment in this case includes:

– A server (at least an 8-core processor with a powerful graphics card, 32 GB of RAM, and a fast hard drive with at least 512 GB of storage);

– A media receiver (for merging video streams).

This server will be sufficient for simultaneously analyzing 2-3 video streams in real-time. For most stores, this is more than enough. The server can additionally be used for automatic Digital Signage management and for processing business processes (database, 1C, etc.).

A digital signage player and a digital signage system can be integrated to improve advertising effectiveness. Using a Digital Signage player allows for the optimization of advertising management processes and enhances customer interaction.

Integration of artificial intelligence

In 2023-2024, the active development of artificial intelligence technologies began. Gradually, they are also being integrated into video analytics. By the way, China has made the most progress in this direction: there are already stores where each customer is assigned an individual virtual assistant-consultant. However, the customer doesn’t even realize that this assistant automatically adjusts based on all available data about the customer (and all their previous visits) provided by video analytics.

Of course, integrating such complex systems everywhere is not necessary at the moment. But it is precisely these technologies that will drive future competition.

The main tasks that artificial intelligence can solve in video surveillance and video analytics systems are:

1. Improving visitor recognition algorithms.

2. Optimizing targeted advertising. For example, each customer’s probable route through the store is pre-compiled. The advertising screens installed along the way display ads that are likely to interest the customer.

3. Conducting automatic analysis of the target audience. The marketing department won’t even need to study the collected data independently: artificial intelligence will do it all by itself.

4. Predicting visitor behavioral factors. Such systems are already used by the “Rive Gauche” retail chains. Moreover, the accuracy of their systems’ predictions was about 33% at the start. Machine learning will eventually increase this figure to up to 80%.

And most importantly: all this will work automatically. Even if it concerns a large network of stores, just one control center is enough to optimize all marketing campaigns. This represents a huge financial saving.

In which commercial areas video analytics will be useful

Video analytics will be useful for optimizing all processes in the following areas:

– Government institutions (administrative service centers, DMV);

– Transportation (stations, bus stops);

– Entertainment and leisure (hotels, casinos, amusement parks, cinemas);

– Retail of all variations and levels (stores, supermarkets, megamarkets, shopping centers).

Additionally, video analytics is now actively integrated into infrastructure objects to support social security. These systems allow identifying wanted individuals and instantly transmitting information about their current location. Therefore, such systems are increasingly integrating into everyday life. Business is just one of the areas where they can be most productively used.

Use of software for Digital Signage

The main tasks that artificial intelligence in video analytics solves include optimizing targeted advertising through Digital Signage software. For each customer, their probable route through the store is pre-composed, and the advertising screens display the ads that might interest this particular customer.

Additionally, Digital Signage software allows for automating the management of advertising campaigns, which leads to significant financial savings. By using a digital signage player, advertisements can be easily integrated into the screens in retail areas, attracting customers’ attention to relevant products and services.

Using video analytics to increase sales

The most promising direction for using video analytics is its integration into commercial areas: stores, cafes, casinos, restaurants, and so on. The main ways this can be practically applied are:

1. Customer segmentation: Video analysis systems can accurately (with a correctness rate of about 95%) determine the customer’s age, gender, and even create a three-dimensional model of their face. This allows for creating a behavioral profile of the customer and classifying them. For example, the system will automatically identify a regular visitor, a VIP customer, and convey this information to the floor manager.

2. Visitor counting: Necessary for optimizing all retail processes, determining the optimal work schedule, and the number of managers on the floor.

3. Queue length control: Especially needed for large stores with multiple checkout counters. Regular long queues will likely drive customers to prefer competitors, which must be avoided at all costs. The video analytics system can analyze in real-time and instantly notify the manager about the need to open an additional checkout.

4. Shelf stock monitoring: Allowing a sought-after product to be unavailable is a fatal mistake.

5. Creating personalized advertisements: For example, in markets, there are now control scales where customers can weigh an item and immediately learn its price. There is also a display that simultaneously shows advertisements. By adding a camera and processing the signal through a video analytics system, it’s possible to immediately determine the customer’s parameters: age, gender, and the product they are currently interested in. Based on this, advertisements that are likely to interest the customer will be shown.

In the aforementioned situations, the average error margin for video analytics systems is between 5 to 15%. Using software with artificial intelligence and machine learning algorithms can reduce this error to approximately 2-3%.

How it works

You can learn about how information is collected and subsequently analyzed to increase profits here.

How much It costs

The final cost of integrating video analytics depends on:

– The number of installed cameras whose video signals will be analyzed.

– The type of equipment used: stationary or cloud server.

– The type of software used.

There are companies that specialize in installing video surveillance with video analytics. They also provide cloud software for screens with payment via a monthly subscription. The average price of an equipment set is from $300 (a couple of simple cameras and a receiver that sends the signal to the internet). The subscription fee for cloud video analytics is from $10 per month per signal source. The average price of a server is from $1000.

Thus, video analytics is currently the main driver of marketing. If you do not use this tool in time, you are likely to lose the competitive battle. But most importantly: such systems are now widely accessible. They can be integrated with an initial budget of only $300. However, such a project pays off in the shortest time, as confirmed by the financial reports of businesses that actively use this marketing tool.


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