With the grip of the recession easing, research firm iSuppli projects strong digital signage growth in retail and indoor applications; a nontraditional source of ad revenue could give both a boost.

Last week, research firm iSuppli came out with a forecast of LCD and plasma display shipments for digital signage applications this year, and panel shipments for indoor venues and retail signage look to see dramatic growth.

The El Segundo, CA, based research firm is predicting the number of LCD and plasma signs for use in entertainment facilities, hospitality centers, healthcare facilities, auditoriums and indoor arenas -collectively described as "indoor venues" by iSuppli- will reach 720,000 units this year -up more than 70 percent from the 419,000 shipped for indoor venue use in 2009.

LCD and plasma displays for retail signage also will enjoy significant growth this year, says iSuppli. Displays used in grocery stores, shopping malls and fast-food restaurants, will climb 18 percent from the 2009 level to 848,000 units. That's an increase of some 131,000 from last year.

According to Sanju Khatri, principal analyst for signage and public information displays, "renewed economic vigor after the recession" is responsible for the strong growth forecasted. More panels mean more touch points with consumers, and advertisers looking to capture their share of consumer spending as economic activity picks up will renew their commitment to digital signage, which was growing before the wheels came off the economy.

While there are plenty of traditional advertisers -from apparel to produce, soft drinks to pharmaceuticals- who've had a taste of digital signage ads and want more, there may be a source of ad revenue with a history of spending millions upon millions of dollars on ads that probably has never even considered digital signage advertising. However, cashing in with this advertiser will require a little out-of-the-box thinking on the part of both the ad buyer and ad seller.

On Jan. 21, the U.S. Supreme Court in a 5-4 split decision said it was a violation of the First Amendment to limit the amount of money corporations and unions spend on political advertising. I do not intend to argue in favor or against the court's decision in the space. Rather, I wish to point out a fairly obvious, but easily overlooked, fact: with the bans lifted, the tide of corporate and union money spent on political ads in 2010 is highly likely to rise in a significant way. Both as well as the candidate receiving their financial support will be able to spend without restriction.

As they do, they're likely to continue to rely on their mainstay media: radio, television, newspaper and direct mail. But without a spending cap, they may also be receptive to new advertising media like digital signage. After all, Internet advertising on political ads -a relative newcomer in terms of the storied history of campaign ads- has experienced steady growth.

A look back at the last off-year election cycle in 2006 reveals about $2 billion dollars were spent on political advertising. With several political pundits predicting the 2010 campaign could result in a change in control for one if not both chambers of Congress, political ad spending this year is likely to be far higher.

To be sure, politicians, corporations and unions have a well-established track record of seeking out the greatest number of eyeballs for their ads. So, it won't be surprising if local and network TV continue to dominate ad buys. But consider this: digital signage can offer politicians, corporations and unions with specific, highly tailored messages an effective means to reach a desired constituency just as it offers advertisers promoting a particular piece of merchandise a targeted way to communicate with a specific audience.

For instance, digital signage might offer organizations backing candidates who support the Second Amendment a way to reach gun owners via signage hanging in a sporting goods store, gun shop or discount retailer. Or, a car company wishing to back a candidate who opposes stricter fuel efficiency standards might run ads on signs in car dealership service waiting areas or car parts stores. The possibilities are seemingly endless.

As LCD and plasma displays dedicated to digital signage applications are forecasted to grow in a dramatic fashion this year, the gift of an unexpected, potentially significant new ad revenue source may help make achieving the break-even point of putting the signs in place occur long before otherwise would have been reasonable to expect.