Digital Signage OVERVIEW (As presented in chapter C8 of the Digital Signage Planning Guide)
Digital Signage is a network of digital displays that are centrally managed and location-addressable for targeted information,
promotion, merchandising and advertising at locations. The high return on investment from the medium is based on its ability to simultane- ously brand, merchandise and provide improved ambiance and vitality at a location. Digital Signage is also referred to as Dynamic Signage, Place-based Digital Signs, Electronic Signage, Digital Media Advertis- ing, Digital Signage Network, In-store TV Network, Captive Audience Network, Narrowcasting Network, Out-of-home Media Network, Digital Media Network, Advertising Network.
An Explosive Element of the Media
Industry: Digital Signage is a high growth and rapidly expand- ing digital media sector with a sustained compound annual growth rate of over 20%.every year since 2003. An estimated 20 million flat panel displays are currently operational in locations in North American where people shop, eat, travel, gather, work and study. The highest growth sectors of use are retail, food services and grocery, healthcare, sports and recreational venues, entertainment, hospitality, transportation, pub- lic services and other public-use locations. It is also used for staff and visitor communications in corporate and manufacturing environments.
Over $1 billion in advertising is spent annually on digital out-of-home message presentation. This amount is growing by 13% annually based on the inherent benefit of location-based audience targeting.
Digital signage is usually “owned” by the end user organization and may be sourced as a managed service, The marketing or human resources departments are typically “own” the digital signage initiative with information technologies, facilities and procurement departments providing support. Over 450 advertising-based networks are currently operating under investor ownership.
Typical Content includes video, still or an- imated images, “ticker-tape” or scrolling messages for advertising,
offers, promotion, messages, entertainment, instruction, notices, safety alerts, educational materials, announcements, wayfinding, schedules or information updates such as news, weather, sports, etc. Digital signage also serves as a business dashboard of key performance indicators in corporate and manufacturing environments. A wide range of media for- mats can typically be ingested, managed and presented from MPEG2- 4 and HTML to .jpeg and .pdf,
Business Impact of digital signage use is proven to be significant with high return on investment. Products and services
generally experience a 4% to 50% sales lift with as high as 300% hav- ing been realized. 5 to 15% increase in service enquiries are realized in financial retail, health and wellness services and automotive repair. 60+% ad recall is realized with digital signage and the medium reduces perceived waiting time by 40% or more. An InfoTrends/CapV impact assessment in 2005 reported the following consumer views of digital signage being “highly effective”.
• 42.7% Improved brand awareness • 29.5% Increasing average purchase amount • 31.8% Increasing overall sales volume • 32% Repeat buying • 32.8% Increasing traffic or customers visiting stores
Attractive to Venues: Digital signage provided value to the location in which they are placed by improving the visit
experience and information flow, reducing information costs, reducing perceived waiting times (typically by 40-60%), improving safety and reducing liabilities related to public information. In the 2005 InfoTrends/ CapV study, consumers reflected that digital signage was “highly effec- tive” in improving the venue experience.
• 46.1% Enhancing the customer's experience • 33.4% Increased time in store
Control over Message Display: Each digital signage display is able to present unique content or groups of
displays can present the same information. Central control and playout scheduling in a closed system protected by various access permission approaches assure messaging security.
Exploiting Technology: Digital Signage has emerged quickly due to decreases in the cost of electronic displays
and the ongoing pressure to get better results from communications, promotional and advertising spending. Other driving forces include improvements in the power of computers, the lower costs of digital content creation and better message targeting,
Training Use: The digital signage network infrastructure can also be used for staff training or communications of management mes-
sages, presentations, information briefings, announcements and other corporate presentations. Organizations have used similar networks for distance learning and business communications for over 30 years are now using the digital signage network to improve staff productivity.
Lyle Bunn is a widely-recognized subject matter expert, analyst, advisor and educator of digital signage who presents at ADI Global EXPO events. He has assisted hundreds of end user organizations in their planning, funding, design, sourcing and op- timization of digital media initiatives and has helped to train thou- sands of end user and supply professionals. He has published over 350 articles, whitepapers and guides.
Lyle@LyleBunn.com
Lyle Bunn is the author of the Digital Signage Planning Guide which includes planning resources and templates as well as powerpoint slides for end user and supply professionals. The guide is now in its 6th edition and is used around the world. It is the single best source of resources for planning, design, sourcing, operating and optimizing digital signage projects, with in-depth guidebooks for dynamic signage application in retail, food services and on campus. Presentation slides are useful to guiding, funding and advancing digital signage initiatives.
http://www.lylebunn.com/digital-signage-planning-guide-6th-edi- tion-now-available.php).
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