2010 – The Year of Choice… On How To Engage with Digital Signage
By Lyle Bunn The “train” that is Digital Signage left the station in the post 9/11 economy when advertisers and marketers sought more productive ways of communicating. Since then it has been picking up speed at a double digit compound annual rate of growth and acceleration, and now has a full head of steam and is thundering down the tracks in just about every market and application area. Digital signage continues to be installed at points of purchase, transit, waiting and gathering, at and near where people shop, work and study to inform, influence and increase safety.
Arbitron has reported that Out-of-Home video as a medium reaches 67 percent of Americans 18 years and older each month, and delivers a fairly representative cross-section of consumers. 76 percent of those seeing digital signage noticed displays in multiple venues.
A “critical mass” of displays has been deployed, which allows advertisers to reach targeted audiences based on demographic profile, Designated Market Area (DMA), geography and even the activity in which they are involved (shopping, transit, café, workout, attending a game, etc.). More than 180 ad-based networks exist with 47 of these (as Out-of-Home Video Advertising Bureau – OVAB members), accounting for almost 400,000 displays. DisplaySearch reflects that almost 1 million displays have been deployed in North America for dynamic media presentation to shoppers, patrons, staff and students. A Compound Annual Growth Rate (CAGR) in display deployment of 23 percent+ is forecast. This growing critical mass substantiates the value of the medium for marketers and other communicators.
20 percent of the 1200 firms that responded to the fall 2009 industry survey conducted by the Digital Signage Association indicate they will spend between $200K and $1M per year on DS/DOOH. This represents 240 firms of the survey respondents themselves expecting to spend a total of $48 to $240 million. Forecasts by industry analysts place industry projections in excess of $1.2B annually.
So the question is not whether or not an end user or suppler organization will engage with digital signage during 2010, but “how.” End users, suppliers and integrators all have the choice to be part of digital signage or not, with consequences to those that do not, and benefits for those organizations that do.
End users such as retailers, service providers and others will lose revenues and patrons to competitors that use the medium, or will enjoy the benefits of more effective communications spending, meeting the information needs of target audiences. We are increasingly a “visual” society and the effectiveness of digital signage as a communications device is being proven across a wide spectrum of projects.
AV and IT integrators are ideally suited to providing the technology integration needed. Some have lost market positioning by not offering digital signage earlier, while others have seized on new clients, revenues and margins, while other parts of their business have declined. Some are generating new, ongoing revenues from services such as network planning and design, network operations and content production. End users are going to buy from someone, and the ability to respond to needs is the basis of ongoing supply relationship.
The field of the suppliers of technologies that comprise the technology “ecosystem” continues to grow. While some bring more cost/effective elements for media authoring, management, connectivity and presentation, many are enhancing their offering by bundling technology elements.
Once the choice of whether to engage is made, the important question of “how” needs to be addressed.
The following chart illustrates the framework for digital signage planning, supply and operations. It provides the context of the choices that end users and suppliers must make as they decide HOW they will engage with DS.
No single organization can supply all elements of a Digital Signage network and there are a wide range of more or less encompassing approaches used in both the sourcing and supply of the required elements. This presents opportunities while also making decisions about sourcing and supply both important and complex. Digital signage starts in the same way as the typical audio/visual project; however, they are typically much more complex in the definition of intended use, outcomes, Return on Investment (ROI) and Return on Objectives (ROO). A challenge of this phase is that the lack of understanding of what the digital signage technology can do, often constrains the process.
So consideration for the enabling technology in terms of functionality/benefits/costs relative to ROI and ROO is needed. The iteration and refinement of communications goals and the technology will result in a balance of outcome versus investment.
During this planning and assessment, the approach to technology sourcing/supply will be determined.
This feeds into the business model of “who supplies what” and “how.”
And in this process, some areas of ongoing operation emerge as key sourcing/supply issues. These include network operations, help desk, playlist administration, and content creation and sourcing in particular.
Throughout the process, end users as well the integrator and suppliers must each decide on the nature and degree of their involvement in each phase of the system deployment life cycle and the sourcing of required technologies and services.
New digital signage projects will be advancing in 2010 across the economy. And, as the communications objectives become broader in scope and the technology infrastructure of existing networks is refreshed, new sourcing requirements and supply opportunities exist.
So, 2010 is a year of choices.
Correct decisions by end users will result in successful projects with ROI/ROO from the sourcing and use of digital signage.
Correct decisions by integrators and suppliers will result in new revenues and profits, the retention of existing customers and expansion through new ones.
Lyle Bunn is a highly regarded independent consultant and educator in North America’s Digital Signage Industry. He is a member of the Academy Faculty of InfoComm, has published over 80 articles and regularly presents at industry events. He is author and principal presenter of the SPEED Digital Signage Training Program which was used by over 1100 people during 2009 to plan their project and supply approaches. Go to http://www.LyleBunn.com or email him at Lyle@LyleBunn.com Back to Top |
Ten Digital Signage Buzzwords and Phrases That Need Shelved Now
By David Haynes Robin Wauters at TechCrunch did a great piece recently about words he would love to see banned from press releases. It is very Silicon Valley-focused, but much of what he had to write could be applied to this sector.
I thought I would use that for inspiration for my own, DS-centric list. The hype in this space is crazy, and there are entire press releases that don’t say much at all, but have lotsa words and phrases we all read way too often, and that need to go away.
We’ve all read this press release:
Dynamic HyperDigital LLC, a leading global provider of best-in-breed, scalable and cost-effective digital signage solutions, announces the release of its next-generation software platform, ScreenMax 5.2, which revolutionizes the way businesses can manage their screen networks.
A pioneer in digital signage solutions since 2007, Dynamic HyperDigital develops leading-edge … blah, blah, blah
Mere mortals have at this point given up, and still have no idea why they should be interested.
With that buzzword blizzard laid out, here’s the must-go list, in no real order:
1 – CONTENT IS KING
“At XYZ Creative Studios we believe content is king…” Click. Gone. Not reading that thing anymore. The phrase is so old and tired it’s slipped into a coma. Stop! Just stop.
This stuff really is all about what’s on that screen, but the people who STILL drag that phrase out instantly kill their credibility. There are many ways to write or state the same thing.
2 – LEADING
I did a very casual survey once and even built a little word cloud to visually represent ALL the leaders – the industy leaders, the leading providers, the global leaders – in the digital signage sector. There was a PILE of them. As TechCrunch notes, just because everyone else writes that, it doesn’t mean you are breaking some rule by skipping it. When everyone says they are the leader or at least a leader, the term becomes meaningless.
Variants: recognized leader; leading global provider; worldwide leader; world-leading
3 – REVOLUTIONARY
That’s one big, loaded term, and it gets used by companies saying their new bits or baubles will revolutionalize digital out of home media. Or whatever. Revolutionary technology comes along only ever so often, and when it does, everyone knows. The iPhone was revolutionary. Same with the Blackberry. Not so much with the Palm Pre. Use the term with care, otherwise you look goofy.
Variants: revolutionized; groundbreaking; game-changer; disruptive
4 – LEADING EDGE
What does that mean anymore??? New???
Variants: Cutting edge; Taking it to the next level (eeesh)
5 – NEXT-GENERATION
Also noted in TechCrunch, a seriously overused nonsense phrase. It gets used to express the notion that the stuff coming down the pipe is new and cool. Does next-gen mean something 20 years ahead of its time? Or does it mean upgrade?
6 – PIONEER
“So and so, a pioneer in the something or other.”
Honestly, there are a few people who have been banging away at this digital signage thing for 15 years or more. Unless you were around before it was even possible to buy a flat panel, or needed $10K to get one, you’re not an industry pioneer. Nor is your company. Exceptions go to companies that are bringing newer technologies into the space, though pioneer is still a pretty tired handle.
Veteran is OK. It expresses you’ve been around the block and made some mistakes, and learned some stuff.
Variant: “the first!”
7 – TURNKEY SOLUTION
The term is now so liberally used it is impossible to sort out what might really be a turnkey solution. A turnkey solution, properly defined, is one in which “a product or service can be implemented or utilized with no additional work required by the buyer.” So, good luck with that! Most of the guys peddling a turnkey solution aren’t even close to being able to say, “Here ya go buddy, network’s done. Here’s your keys!”
The other problem is the risk of typos. Ask BroadSign, which a few months ago saw a plug for a turnkey solution turn up as a turkey solution.
End-to-end is a a variant, and still a bit of a cliche. But at least it conveys more accurately a sense that a company can work with a client from the start of a project through to inception.
8 – SCALABLE
Now scalable is meant to convey that a particular technology or service can grow with a client, from 10 to 10,000 if need be. Scalability is indeed important. If you do it right and the platform really is built to scale up, then you should be able to operate a very large network with only a relatively small increases in resources needed. Invest in a platform that’s good for 50 sites but can’t handle 500 connections, and you are for in a world of pain. Problem is, everybody now uses that term, and scalability has lost its meaning. Plain language – just flat saying what your doodad can manage – will do just fine.
9 – COST-EFFECTIVE
This is code for affordable, or justifiable. But when just about every solution out there describes itself as cost-effective, it’s no longer a phrase that’s going to resonate. If you’re selling on price, just point out you have a low-cost solution. People get that.
10 – BEST IN CLASS
Says who? There are no real objective, thorough ratings or reviews in this space, certainly not for the software platforms, so how does a company get to be at the top of the heap? By self-declaration, of course.
So the phrase is empty, and prospective buyers know that. What makes a company top of class is how much business it does and how many clients stay with that client year after year, not to mention how the company behaves. Variant: Best of breed; best in breed; best in show (OK, never seen that in this context, but it will happen.) Dave Haynes is the founder of pressDOOH, a marketing communications firm focused specifically on the digital signage and digital out of home sectors. Haynes writes a general blog about the industry called Sixteen:Nine, and another called Buzz, Not Buzzwords that he hopes will guide industry members about what NOT to include in company marketing pieces.
Back to Top NEC Launches New Low Priced DS Displays Yesterday, NEC Display announced the addition of a new ProAV-grade product line, the E Series. Debuting for this entry-level series are the 32-inch E321 and 42-inch E421, which NEC says gives corporate users an affordable option for lobbies, boardrooms and small conference rooms, while addressing the display needs of digital signage users in retails stores, waiting rooms, and health clubs.
Although these are labeled "entry-level," it's hard, looking at the specs, to differentiate these 32-inch and 42-inch monitors from higher-end models as they are native 1080p LCDs with a 4000:1 contrast ratio spec, use less than 190 watts of power, have HDMI and analog inputs, and integrate ATSC (HDTV) tuners. Plus, they're priced at $499 and $849, respectively! Both will ship next month.
For complete specs, go to: http://www.necdisplay.com/Products/Series/?series=a0690faa-9872-4b2b-88c0-4329cfb4ba7a Back to Top Minicom Unveils Nine Display Video Wall Last month, Minicom showed their new DS Vision Wall something they are dubbing an Ultra High Definition (UHD) display wall solution aimed at the in-store retail signage market. The DS Vision Wall can drive up to nine displays in their native HD resolution, in any shape and configuration. It includes bezel compensation and the screens can be mounted in different ways – vertically, horizontally or side by side.
Want to learn more? Go to: http://www.minicomdigitalsignage.com/big_images/image_cat.asp?i=11&img=dswall Back to Top Scala Partners with TruMedia to Integrate AlliO Systems Scala has partnered with TruMedia Technologiesto provide the AlliO audience measurement system and AlliO Proactive Marketing Solution (PROM) to Scala Certified Partners.
AlliO PROM is an application programming interface (API) that enables real-time integration between the AlliO audience measurement system and Scala’s digital signage software platform. Using PROM, end users can adapt their digital signage content to match viewing audience demographics for proactive advertising. TruMedia’s AlliO uses sensors to analyze facial images of people watching the displays in real time, providing business-critical data such as audience counts, individual exposure times, and gender and age group demographics. This data can be used to select specific media appropriate for the audience. This allows for better media planning and targeted advertising.
Interested in learning more? Go to: http://www.scala.com/news/2009-press-releases/december-22-2009-2013-scala-partners-with-trumedia-to-integrate-allio-systems-with-its-digital-signage-platforms Back to Top SpinetiX HMP100 Integrates with Poster Digital 1.0 Software SpinetiX is integrating their HMP100 Hyper Media Player with little-known Poster Digital 1.0, a web-based digital signage management software tool. The tool is from a Madrid-based engineering company, Tecnilogica Soluciones Avanzadas, who told rAVe DS that the Poster Digital 1.0 has been created with the HMP100 in mind. The integration of the HMP100 and Poster Digital 1.0 is aimed at small to medium installations.
For more information, contact them at: http://www.tecnilogica.com/ Back to Top DISE Digital Signage Platform Adds never.no Mobile Interactivity Option never.no, a provider of the technology that enables people to use their mobile phones to interact with a DS display, announced a partnership with the developer of the DISE digital signage platform, Klocktornet AB. Under the agreement, Klocktornet, headquartered in Karlstad, Sweden, will offer customers around the world the DISE Digital Out-of-Home (DOOH) solution with the option of interactive capability.
The never.no Interactivity Suite is a video platform that enables audience participation by modifying the video stream based on live, user-submitted content. Able to function with traditional TV, Web TV, IPTV, and mobile TV platforms, never.no products power interactive TV formats and entire channels by enabling viewers and consumers to participate through mobile phones and the Internet.
You need to check out never.no – it’s very cool: http://www.never.no/ Back to Top Visix Improves Weather Offering and Feature Set with AxisTV v.7.0.21 Visix has unveiled the latest update of its premier digital signage software application, AxisTV version 7.0.21. The company is also offering a new Flash animated weather module for AccuWeather subscribers. This feature allows users to display animated icons for a more dynamic presentation of weather information. The release includes a variety of new features, enhancements and bug fixes for a significantly improved user experience. Two notable items of the update are the new Channel Player Snapshot and Weather Icons Enhancement.
The AxisTV v.7.0.21 update is available for download from the company’s web site and is free of charge to current Software Maintenance Agreement (SMA) clients. New content manager and media player orders received by Visix after January 30, 2010 will ship imaged with the most recent release to minimize deployment configuration requirements and field upgrades.
By the way, Visix is celebrating their 30th anniversary this year! Congratulations to Visix! Read more about AxisTV version 7.0.21 at: http://www.visix.com/software_updates.html Back to Top NEC Announces Revenue-Sharing Program for Channel Partners NEC Display announced last week that channel partners will receive a recurring revenue stream from advertising if their customers register their digital signage networks on the VUKUNET platform. VUKUNET is NEC’s new initiative that connects network owners and operators of digital signage with advertising revenue, by giving advertisers and agencies an easier way to buy place-based, digital out-of-home (DOOH) advertising.
VUKUNET combines free content management software (CMS) that runs on a PC driving the screen content, with a Web-based advertising platform that connects all digital signage networks so that ad placement, proof-of-performance and payment are centrally managed and automated. rAVe DS covered VUKUNET in detail in our November issue here: http://www.ravepro.com/digital_signage/issues/2009/11/index.html#t0923
To enroll in the program, VARs need to be a part of NEC’s Partner Net site, participate in the VUKUNET training and sign a VUKUNET reseller agreement. Details are available at www.necdisplay.com/partners Back to Top PEI WEI Rolls Out DS Menus Nationwide After two months of running demo tests in early 2009 with three NEC LCD displays and a three-month pilot test in Arizona, Pei Wei went national with their digital signage in June and finished their deployment in October. All told, Pei Wei purchased 486 displays (three per store) at each of its 162 nationwide locations. The displays are installed in portrait mode near the entrance of the dine-in area of each restaurant.
The Goal
Simply put, PEI WEI wanted the ability to not only change their menus in real time, they also wanted to push specials and new dishes to customers, ultimately driving sales up.
How'd They Do It?
Pei Wei’s internal graphic designers provided the creative services to build Flash-based files with Rise Vision software. Since the initial testing in January they have continually made changes to the different merchandising zones – created in Adobe After Effects. One of the key advantages provided by the NEC / Rise solution is the ability to allow Pei Wei to schedule content and manage everything remotely. Back to Top News from SpinitiX, DailyDOOH, Visix… Swiss digital signage manufacturer SpinitiX has appointed Beijing-based Avopo Technologies as its Certified Distribution Partner (CDP) for China and Datumstruct as its CDP for Southeast Asia… DailyDOOH is sponsoring a Blogger Lounge at ISE 2010 in stand 10N118 in Amsterdam next month, with an espresso/capuccino machine, free Wi-Fi, and comfy sofas… Visix is celebrating their 30th anniversary this year. Back to Top So, that's rAVe DS [Digital Signage] for this month! Remember, we are here to HELP the AV market penetrate the DS market. Less than 5 percent of the DS market is integrated by AV companies. The other 95 percent is IT-based. Now, there are AV publications and even an association that would like to draw those IT people in to AV (it would increase readers, right? – and more readers means they can charge more for ads). That is NOT what we are doing. rAVe DS is specifically designed to pull AV into the DS market and teach AV companies how to take business away from the currently dominated by IT market.
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