Blog: Stuart Armstrong 

Stuart Armstrong (bio)
President Americas
ComQi

Wednesday, 12 January 2011

No, I’m not referring to an obscure version of the Chinese calendar (by the way this is the Year of the Rabbit), but rather looking at what aspects of digital out-of-home (DOOH) will be emphasized this year. An emphasis on content is nothing new; we've heard it for years that "Content is King" and that content relevance is an absolute requirement for effective digital signage. So why do I feel that 2011 is unique and not just an echo off the industry walls from years gone by?

First, there is the huge wave happening with mobile and social media. Can you imagine what it must be like to be Mark Zuckerberg? I can’t. Facebook, as with social media in general, is a phenomenon that is reshaping human interaction and defining relevance down to the individual level; when you couple that with the mobility offered by smart phones and tablets (the two big buzzes at this year’s Consumer Electronics Show) you have an incredibly rich communication medium that is with you wherever and whenever you want it. This undoubtedly extends to digital signage, where viewers’ eyeballs, and more importantly, their attention will be gained by content that understands their need state and overall state of mind. Digital signage networks that do not deliver relevance to the viewer will be ignored and not deliver on any viable business model.

Second is the maturing of digital signage technologies. The leading DS software providers are offering sophisticated yet easy-to-use systems that intelligently target content to the right place at the right time, based on who is watching. Sophisticated back-end systems will utilize meta-tagging, location attributes and business rules to automatically distribute content, target its display and generate playlogs and performance analytics. In addition, these providers realize that digital signage is part of a DOOH ecosystem as they create very smart ways to integrate it with mobile and social media applications.

This “targetability,” or narrowcasting as it is often called, brings about a huge demand for everything from original and licensed content to dynamic content driven by RSS or other data feeds (like POS, inventory and loyalty programs) and viewer-generated data such as SMS and interactivity (touchscreens, QR codes, etc.).

So will we see agencies develop content using a traditional creative and production process? I don’t think so. I believe that a new breed of content design and production will emerge that takes into consideration the soaring demand for highly targeted, quickly produced and cost-effective content. Examples of such companies include AccuWeather, CustomWeather, Eventful, Locamoda, Never.no, Saddle Ranch Productions, Screenfeed and others. Please forgive me if I left anyone out, and I welcome your comments below to help create additional awareness.

A call to action for content design and production companies to step up and take more of a leadership position in the industry

I have been generally disappointed with the lack of leadership from content design and production companies in this space. With some notable exceptions, this group has been relatively silent and willing to ride along without putting their hands on the wheel. Most of the thought leadership in this area has come from software providers, network owners and consultants.  

Well, 2011 is your year. Get involved. For starters, if you are not a member of the Digital Screenmedia Association, join today. If you are and you are not actively involved, then start having a voice. Also, this spring at the Customer Engagement Technology World (CET World) show in San Francisco there will be a dedicated pavilion for content companies to show their wares. These are low cost mini-booths equipped so you can just show up and plug in your content. There is limited space, so make sure you sign up quickly.

Posted by: Stu Armstrong AT 09:57 am   |  Permalink   |  2 Comments  |  
Tuesday, 03 August 2010
Throughout the ages, the idea of venturing into the unknown has been too frightening for most people to deal with. One of my favorite examples is of early cartographers using sea monsters on maps to depict the realms of the uncharted. As scary as these images are, they were found to be more comforting then the thought of not knowing what was out there. However, explorers looking for adventure, fame and fortune could not be stopped; they moved beyond the boundaries and, in the process, discovered a new world.

The analogy may be a bit over the top when describing today’s voyages from the old world of traditional above-the-line advertising (TV, print and radio) to digital out-of-home media, but there are some entertaining parallels.

First are those pesky sea monsters. There has been a lot of talk on industry blogs and group chats about the possible early demise of digital signage. One that I found particularly interesting was a Digital Signage Universe group on LinkedIn called “Is Digital Signage dying already?” Lionel Tepper, managing director of Digital Signage Universe and one of the more knowledgeable industry contributors, and other smart folks chimed in on this topic. The general consensus is that digital signage users equipped with a new set of media tools and business models are finding success. They are the ones thinking of this as a media play underpinned by strong technology, not as a technology play where content is an afterthought. They also tend to find ways to engage viewers with multiple media touchpoints. This is where they turn a glance medium into real consumer engagement.

Exercising mobile marketing applications such as SMS, Bluetooth, Microsoft Tag or Interactive Voice Response (IVR) can be a game changer where CPMs go from $5 to $35-plus. Check out what companies such as LocaModa and Never.no are offering. Also, it's worth checking out how Foursquare, a location-based social networking app, is working in conjunction with digital signage to deliver very sticky engagement.

While the soft economy is certainly not helping the industry’s progress, growth is still happening. PQ Media’s Global Digital Out-of-Home Media Forecast 2009–2014 cites a projected 5.7 percent growth, down from 17.2 percent growth from 2004–2009, but still moving in the right direction. iSuppli, a global leader in technology research, is pointing to  25 percent growth of worldwide shipments of LCD and plasma screens for use in digital signage and professional displays in 2010. Add to that the recently published Digital Place-Based Video Study 2010 where the folks at Arbitron found over two-thirds of American teens and adults have seen a digital screen in a public venue in a 30-day period and over half within seven days. More importantly, almost half of those that saw the screen remembered what was on it, and almost 20 percent actually made an unplanned purchase after seeing the item featured on the screen. In my book, growth and results equal signs of sustainability.

So with all this good news, why are some writing the industry’s eulogy? In going back to my analogy, many of the explorers have not designed their ships to get to the new world. In other words, their business models don’t take advantage of the communication and money-making power of digital place-based media. Two points come to mind.

Move from reach to relevancy

Old world media thinking prescribes to communicating over a mass medium, such as television, to a large audience and hoping you get your message to stick with some percentage of the viewers, and typically a very small percentage. But digital out-of-home is about place-based relevancy. That means your content has to earn the eyes and mind of your audience. Don’t think you are going to accomplish that by just putting up TV show trailers between advertisements. If you want to see an example of how this is done right, Care Media Holdings is a network that attracts advertisers because they can demonstrate that they're engaging the target audience. Check out the content on any of their three networks (KidCare, PetCare and Woman’s HealthCare), and you will see what I mean.

Get the brand into the viewer’s pocket

This new world of customer engagement is an active world that, for the most part, exists out of one’s home, where consumers are not passively sitting on their sofas in front of a TV. They are on-the-go to school, to work, to the movies, to the doctor, to the store with the venue type and the viewer’s frame of mind coming together to create engagement opportunities. Consider how content on a kiosk, digital signage or smart phone can motivate someone to engage with a brand and possibly even opt into a branded community. If you have an ad-based model or are a venue owner, don’t limit your thinking to a single technology channel; design your programs with touchpoints that engage your intended audience and increase your chance of success.

Today’s media pioneers are charting the course to the new world. With researchers establishing audience-measurement standards, media planners and brands paying for real engagement, investment and analyst communities getting behind this industry and content providers getting innovative about how to produce smart and affordable content, we have an industry that is sure to be large and sustainable.
Posted by: Stuart Armstrong AT 03:08 pm   |  Permalink   |  1 Comment  |  
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ComQi
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