Reactrix Reaction

This past spring we had the pleasure of being a featured vendor at an Avenue A/Razorfish customer event in New York. Of the eight or so companies there, Modiv Media had the least sexy presence (cans of Pringles and bottles of shampoo to scan just can't compete with interactive window displays when it comes to across-the-room eye candy). One of the ain't-it-cool companies featured was Reactix, which featured interactive ads projected onto the floor.

Consumers could trample civilians and parked cars, play a mini-game of soccer or basketball, make flowers bloom, etc., all by interacting with the projected image. It personally made me long for the Nintendo Wii I had purchased the week before and left with my family back in Boston.

The company boasted of some mall and movie theater installations, some custom projects and a few advertisers, but there seemed to be a few key issues with the product. For one, the hardware costs for such a system seemed pretty significant, and second, while it is a very engaging advertising format, it also required very custom content development for the unique interaction model - something I am sure Reatrix often picked up the tab for as they struggled for traction.

Well, now the news on the street is that Reactrix is one of the first digital signage companies to go under during the current economic slump. As in-store (or in-mall) digital marketing goes through this trying time, these innovative yet expensive mediums will be under severe scrutiny. As strapped companies decide what initiatives to invest in, the ROI needs to be clear.

Mediums requiring expensive custom content with limited reach and a large installation cost will be hard-pressed to survive, yet alone thrive. Models such as Modiv's, that are directly linked to transactions and operational activities and have an easily measurable impact will be in a better position to compete for both the retailer's and advertiser's dollars.