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Dynamic Signage Outlook for 2013

The following is reprinted with permission from the Digital Screenmedia Association (DSA). For more information, go to http://www.digitalscreenmedia.org.

2013 will be another positive year in the decades-long success story that is dynamic signage and digital place-based media, in particular for diligent project directors and suppliers. Specifically:

  • As Health Care Reform legislation, in particular Section 4205 of the Patient Protection and Affordable Care Act of 2010, is implemented, the food services sector will substantially increase its use of dynamic place-based media. This use will spur interest and use in other sectors. Projects in retail, financial services, consumer services, health care and for corporate communications will advance in this current “post-cutting, must build” economic climate.
  • In realizing that successful dynamic signage use and supply is the application of knowledge, proven training programs such as the SPEED II Digital Signage Training Program and others available online through the Digital Signage Expert Group (DSEG.org) and from industry associations will offer an ongoing foundation of project and professional success. Experimentation and trial and error continually give way to structured processes and proven approaches. Under-performing projects and investments will be reviewed and re-positioned.
  • Static sign and digital graphics providers will continue to become a supply force of dynamic signage as the International Sign Association (ISA) offers its members and affiliate regional associations education and resources.
  • Increased integration with data and information feeds, as well as with paid, earned, social, mobile and proximity media will increase the relevance and the business value of dynamic media.
  • Aggregation of display inventory, which has had extremely limited success and sector impact, has a clear path to success during 2013 through operational cooperation. Ad revenue achievement challenges on the part of ad-based networks, the maturing of ad sales and trafficking platforms, and the availability of the ad management and inventory software layer will improve the efficiencies of media commerce on the part of digital place-based networks.
  • Agencies will show more enthusiasm for dynamic place-based media as their clients become more demanding and look to better integrate owned with paid media. The champions of place-based media are the brands themselves, the professional teams of which are ultimately responsible for brand success. It is this brand-driven commitment that is motivating change in favor of brand growth by contributors such as agencies. The fierce competition among agencies and the inherent focus on value and performance to brand client is a point of opportunity to agencies and to the brands they serve.
  • Managed services will become a primary supply option. The convergence of hardware management and cloud services with the need to treat digital signage as an operating, and less as a capital, expense positions the opportunity for managed services organizations and supply approaches to emerge as a significant market option. Ad-based network operators, turnkey system providers and providers of other business-related managed services are well positioned to benefit from this natural trend in sourcing and supply. C-suite engagement (CFO, CIO with CMO) will drive out-sourcing.
  • Strong supply capability will become stronger, resulting in revenue consolidation around those firms that have built and serve a client base. New suppliers risk being driven to low margin and niche opportunities and being “also-rans” as key business deployments go to proven suppliers.
  • Improved research on the sector, the lack of which has stalled investment internally and externally, will become available. This is a must for the growth of the sector.

In summary, the sector has moved beyond the wild west stage of the post-9/11 economy, through a period of technology development and deployment in the mid to late 2000s and is finding its place as a communications and engagement medium, linking and leveraging other media assets and delivering value by “moving the needle” on revenues and providing business operating economies.

The mystery around the technologies that underpins dynamic signage is waning as end users realize that technologies are but part of the business ecosystem required in order for benefits to be realized through the enabling effect of these digital technologies.

The planning and operating construct are clear and well proven. The starting point for investment and optimization is in stating the business value to be realized, then to define the content required to achieve these goals. This is followed by the identification, selection, deployment and operation of the technology infrastructure required to present the content that will achieve the business goals.

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