Blog: David Little 
David Little (bio)
Director of Marketing
Keywest Technology
Tuesday, 16 September 2014

Digital signage puts marketers and other communicators in charge of when and where their messages influence consumers. This may also mean changes in the way things get done and who’s responsible for those things.

Day after day, the media are filled with stories of who will do what if this politician or that party takes control. The headlines are filled with phrases like “seizing control” and “taking power” and stories about the ramifications of Democratic or Republican control of Congress.

“Taking control” is part of our daily lexicon, too. “He’s a take charge kind of guy.” Or, “She’s a control freak.” Everywhere you turn, life seems about controlling our words, our actions and our environment. At least it is in most spheres.

But I wonder, if you were to ask 10 communication managers how in control they feel about their marketing message, if even half could honestly say they’re in charge. Sure they design their messages and sign off on the creative product of their advertising agencies. But from that point on they start to lose control.

Marketers cast their messages out to the public through a variety of media, like the Internet, print publications, TV broadcast and radio, without really knowing whether or not the public is fully absorbing their messages. Today’s empowered consumer is far more likely to zap the commercials on their digital video recorder, change the radio station and turn past the newspaper and magazine ads, than they are to actually acknowledge the marketer’s message and take a desired action.

That’s why when it comes to taking control of marketing messages, no other medium appears to approach digital signage. With digital signage, marketers can influence shoppers when they’re in the buying frame of mind at or near the point of sale. They can day-part their messages, appealing to stay-at-home parents during one portion of the day and the after-5-work-crowd at another. Digital signage even allows them to control their messages on a micro-geographic level, targeting a neighborhood, ethnicity, age group, social strata or income like no other medium.

With digital signage, communication managers aren’t only in control of their message but also how, where and when that message is presented to a highly targeted market audience. Digital signage elevates the control over messaging to a level all managers dream of and few currently achieve. When looking at the practical results of this robust communication medium, digital signage is a game changer for advertisers.

Digital signage represents a new age for marketers and communication managers—and a new way of thinking about content, one that can address in real time the ways consumers think and act in the purchase environment. Digital signage is not television. It’s not Internet. It’s not radio. It’s not print. It’s a completely different medium and requires a fresh approach.

Look around you. Don’t let this game changer pass you by and risk intellectual paralysis by over analyzing the obvious. Digital signage is here to stay and is becoming the communication medium of choice for messages where consumer engagement and frequent changes in content are desired. Avoid hiring an agency with old-school paradigms; consider teaming with a full-service digital signage company that has a proven track record and will assume some accountability for your return on objectives.

Posted by: Admin AT 08:00 am   |  Permalink   |  0 Comments  |  
Friday, 15 June 2012
The latest data from PQ Media reveal 2011 was a good year for digital out-of-home advertising, and 2012 is on track to be even better.

While stock markets around the world retrace, the financial picture of Greece and Spain flounders and the world holds its collective breath waiting to see if there'll be an attack on Iran and a spike in oil prices, there is a piece of outstanding economic news for those involved in the place-based digital media market.

2011 was a great year for digital out-of-home advertising, and this year is setting up to be even better. Data from PQ Media released in April show that global digital place-based networks, billboards and signage operators saw revenue grow by 15.3 percent to $6.97 billion last year. This year, the revenue figure is projected to be even better, growing 19.2 percent.

In the United States, DOOH operator revenue climbed by 11.2 percent last year. According to PQ Media, an econometric research and consulting service in Stamford, CT, digital billboard operators saw double-digit revenue growth and operators of place-based networks saw a high single-digital rate of growth.

According to the PQ Media "Global Digital Out-of-Home Media Forecast 2012-16," the compound annual global growth rate for the five year period will be 13.7 percent. Much of the revenue growth appears tied to a recognition of how important it is to reach consumers outside the home where they make purchases. "While TV remains the 800-pound gorilla of ad-based media due to its reach, scarcity and measurement, DPNs (digital place-based networks) offer brands opportunities to extend their reach by engaging target consumers with contextually relevant content in venues outside the home," said PQ Media CEO Patrick Quinn.

Digital signage networks were one of the fastest-growing ad-based media in the United States last year. While PQ Media acknowledged a deceleration in the rate of growth in the second half of 2011 due to cyclical economic events, it found digital place-based networks experienced a revenue increase of 10.7 percent from 2006 to 2011.

According to PQ Media, digital place-based networks are likely to benefit indirectly from the Summer Olympics in London and the U.S. political campaign this fall. Both traditionally inject significant revenue into local television stations as well as cable and broadcast networks. This time around, however, PQ Media foresees a scarcity of TV inventory. As a result, major brands squeezed off television could be forced to consider other video platforms, such as digital place-based networks, said Quinn.

The latest revenue tally from PQ Media is another in a growing string of positive developments over the past couple of years for the digital signage industry. Together, they wins demonstrate that digital placed-based media is a viable and being taken seriously by companies with products to sell and the advertising agencies they hire.

The growing availability of audience metrics for digital place-based media is adding a sense of legitimacy about this new medium for those who control where ad dollars get spent. The PQ Media ad revenue numbers, therefore, shouldn't be too surprising.

Going forward, the next big test for this medium will likely be whether or not those responsible for buying ads will reallocate dollars from television to digital place-based media.

With the possibility of too few available commercial slots on TV in the second half of the year, there might be a hint as to whether digital place-based media can begin taking on the "800-pound gorilla" and winning.
Posted by: David Little AT 05:15 pm   |  Permalink   |  0 Comments  |  
Friday, 11 May 2012
New research from IHS iSuppli indicates growing adoption of digital signage around the world as professionals in the retail, hospitality, healthcare, corporate and government sectors look to the medium to communicate to audiences on the go.

Political watchers probably are familiar with that often-asked question -and even more often asked in an election year: Is the country on the right track or the wrong track?

I would propose that those who make their living communicating marketing messages, ads, information and even entertainment on digital signs should frequently ask themselves a similar question. Is digital signage on the right track or wrong track? In other words, is digital signage a growing, vibrant communications medium that is headed in the right direction as a viable communications choice? Or, is it losing favor?

A new forecast from display market research specialists IHS iSuppli suggests that, indeed, digital signage is on the right track, at least if its adoption is any indication. According to the forecast, digital signage will see impressive growth. Worldwide shipments of signage and professional displays this year will reach 17.2 million units, up from 15.4 million in 2011 and 13.5 million in 2010. For the year, the unit shipments will reach 12.6 percent, and by 2016 they are expected to reach nearly 26 million units, IHS iSuppli forecasts.

The research firm attributes the healthy growth to a few factors, including a greater need for digital signage in public spaces and the rapidly declining price of LCD panels.

The IHS iSuppli forecast also identifies the largest digital signage markets for 2011. They include retail, hospitality/healthcare and government/corporate. The forecast also finds the education, outdoor and control room/simulation markets to be important.

So why are those with a message to communicate increasingly adopting digital signage? A few reasons are clear. First, digital signage has the unique ability to reach the public with clear, impactful communications when they are on the go.

Second, because it's a place-based medium, digital signage communicators can identify areas to locate signs that likely will be frequented by their target audience. For example, a restaurateur has a pretty good idea that the people entering the restaurant have eating on their minds, and the registrar of a college knows students entering the administration building at the beginning of the semester are likely interested in class registration information.

Third, digital signage offers communicators the chance to change messaging frequently -at little to no expense- which makes the medium responsive to rapidly changing requirements.

For all of these reasons and several others that have been well discussed in this space in the past, digital signage increasingly is being selected as an important part of an overall communications strategy.

As this nation enters the political season, journalists surely will report on the public's response to the right-track-wrong-track question. I'm sure each time I hear one of those stories, I am will be reminded of this column and the clear evidence from IHS iSuppli that digital signage is indeed on the right track as a communications medium.

While prognosticating about the results of any of this political season's races is a craps shoot, one thing is predictable. Digital signage as a communications medium will remain on the right track as long as professional communicators need to reach people on the go with their important messages.
Posted by: David Little AT 04:52 pm   |  Permalink   |  0 Comments  |  
Friday, 13 April 2012

Digital signage communicators must begin looking for ways to leverage the ubiquity of smartphones and media tablets.

If you are like me and drawn to science fiction, fascinated by quirky views of the future, you might remember a mid-1980s TV show called Max Headroom. While the particulars of the series have blurred in my memory over the years, the one thing that hasn’t is the ubiquity of television in the society portrayed in the show.

I’m not talking television simply being convenient; in the world explored in the series, TV literally seemed to be everywhere. Not just in homes and apartments, but on the streets, resting on a pile of trash, in the trunk of a car. You get the idea. It was impossible to get away from the blasted things.

That feeling of society being overwhelmed by the tube –now there’s an antiquated term- seemed so impossible, so remote, so “sci-fi” just a couple of decades ago. But today, I would argue, we are well on our way to similar television omnipresence.

In May 2011, the Nielsen Company estimated the number of TV households in the United States to be more than 114 million, or 96.7 percent of all households in the country. In January of the same year, Nielsen estimated there to be on average 2.5 TVs per U.S. household. Impressive, but nowhere near ubiquitous –at least not by “Headroomian” proportions.

But TV households don’t tell the whole story. According to an online Time Business article published a few weeks ago, Apple has sold 55 million iPads in the two years they have existed. When all media tablets –not just the iPad- are factored in, market research firm IHS iSuppli projects that 275 million tablets will be sold by 2015, or about 16 times the number shipped in 2010.

Getting a little closer to ubiquity? Perhaps, but don’t forget about smartphones. A CNN report from July 2011 quotes a report from the Pew Internet and the American Life Project estimating 35 percent of Americans own a smartphone. Another study from research firm In-Stat, quoted in an August 2011 CNET article, forecasts that 65 percent of Americans, some 200 million people, will have smartphones and/or tablets by 2015.

Now, it seems to me, we are approaching the Headroom threshold of TV ubiquity. Granted they are more likely to take the form of a sleek tablet, smartphone or flat panel TV than a beat up set teetering on a mound of broken TVs in an alleyway, but ubiquitous nonetheless.

This sort of near omnipresence would seem to raise a fundamental question for digital signage communicators: What is the value of communicating via a digital sign, if hundreds of potentially competing screens are literally a few feet away in the pockets and purses of passersby?

I would argue digital sign communication is not threatened by the broad availability of smartphones and media tablets, but potentially enhanced in at least three important ways.

First, those portable devices offer a means for digital signage communicators in the future to continue their dialog with their audience once they leave the store, arena, lobby or other venue.

Second, if television-viewing habits are any indication, many people don’t replace their TV viewing with online viewing, they complement it. Millions of people today regularly interact with their friends online via Facebook and other social media about a show while they are watching. It’s not too far-fetched to envision similar sorts of interaction while in front of a digital sign, depending upon the circumstance.

Third, total viewing time of video entertainment is increasing. Rather than cannibalizing an existing audience, new media devices are driving greater viewing. For digital signage communicators, this increased viewing means it should be easier, not harder to attract people who have demonstrated a willingness to watch media on flat screens.

To me, it seems the Headroom-like availability of screens on the whole will complement the communications efforts of those who market and message with digital signs. Not embracing the ubiquity of these screens and looking for ways to leverage them would represent a major missed opportunity.
Posted by: David Little AT 05:20 pm   |  Permalink   |  0 Comments  |  
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