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Digital signage

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File:Ikea-by-beaver-solutions.jpg
Digital signage in IKEA at the Edmonton, UK store.

Digital signage is a form of electronic display that shows information, advertising and other messages. Digital signs (such as LCD, LED, plasma displays, or projected images) can be found in public and private environments, such as retail stores and corporate buildings.

Advertising using digital signage is a form of out-of-home advertising in which content and messages are displayed on digital signs with a common goal of delivering targeted messages to specific locations at specific times. This is often called "digital out of home" or abbreviated as DOOH.[1]

The benefits of digital signage over traditional static signs are that the content can be exchanged more easily, animations can be shown, and the signs can adapt to the context and audience, even interactively. Digital signage also offers superior return on investment compared to traditional printed signs[2].

Market and applications

While the term "digital signage" has taken hold throughout most of the world, some companies and organisations prefer to use the terms "narrowcasting", "screen media", "place-based media", "digital merchandising", "digital media networks", "digital out-of-home" or "captive audience networks"[citation needed].

China currently leads the world in the number of digital signage displays deployed and number of NASDAQ IPOs, with the country's biggest digital signage firm, Focus Media Holding, alone operating more than 120,000 screens. Total revenue from the digital signage equipment market in the United States – including hardware, software, installation, and maintenance -- is expected to grow by about 33% in 2009.[3]

Digital signage is used for many different purposes and there is no definitive list. However, below are some of the most common applications of digital signage:

  1. Public information – news, weather and local (location specific) information, such as fire exits
  2. Internal information - corporate messages, health & safety, news, etc.[4]
  3. Advertising – either related to the location the signage is in or just using the audience reach of the screens for general advertising
  4. Brand building – in-store digital signage to promote the brand and build a brand identity
  5. Influencing customer behavior – directing customers to different areas, increasing the dwell time on the store premises
  6. Enhancing customer experience – applications include the reduction of perceived wait time in restaurant waiting areas, bank queues, etc., as well as recipe demonstrations in food stores
  7. Enhancing the environment – with interactive screens (in the floor for example[5]) or with dynamic wayfinding

Content

"Content", in the context of digital signage, is the name used to descibe anything designed and displayed on screens. Content can be anything, including text, images, animations, video, audio, and interactivity. It has frequently been argued that digital signage relies on good content if it is to work effectively.[6]

Where the technology has proven itself, it is often the content that fails, because marketers have not adapted their thinking to produce appropriate and engaging content[citation needed].

Content design (much like the design for static signage) is typically done through a specialist agency or in-house. While there are a great number of different software solutions available, the most popular are made for the specific purpose of digital signage. The use of other systems to run a digital signage network often does not provide the necessary flexibility and management.

In many digital signage applications, content must be regularly updated to ensure that the correct messages are being displayed. This can either be done manually as and when needed, through a scheduling system, or by linking in with an outside feed (such as RSS or an in-house data source).[7]

Technology

File:Digitalsignage.jpg
Digital signage in the Warner Village Cinemas in Taipei
File:Showcase-cinemas-de-lux.jpg
Digital signage in the Showcase Cinema de Lux in Derby, UK
Digital signage in a pharmacy store

Digital signage relies on a variety of hardware to deliver the content. This is typically a display screen, player server and a content management server (sometimes both the same thing), over an infrastructure (dependent on the location of these pieces of hardware).

Displays

Digital signage displays may be LCD or plasma screens, LED boards, projection screens or other emerging display types like living surfaces[8] or Organic LED screens (OLEDs). Other, less traditional technologies for digital signage exist, such as 'holographic displays'[9], water screens and fog screens[10]. However, these are typically used for smaller one-off installations rather than large networks.

Rapidly-dropping prices for large plasma and LCD screens have led to a growing increase in the number of digital signage installations.[11] Another price-related benefit that is allowing a larger group of businesses to install digital signage is the increasing availability of newer LCD and plasma display brands in the market. Many locations have opted to forgo more expensive brand name displays for more affordable displays from less well-known companies.[citation needed]

A recent study shows that there is a statistically significant relationship between price and the display size. The same study also shows that there is a significant relationship between price and brand name. These two variables account for 77% of the price in displays[12].

Content playback and management

Content is played to the displays of a digital signage network from at least one player machine. Various hardware and software options exist, providing a range of different ways to schedule and playback content. These range from simple, non-networked media players that can output basic loops of MPEG-2 video to complex, N-tier players networks that offer control over many displays in many venues from a single location. The former are ideal for small groups of displays that can be updated via CD-ROM or USB flash drive, while the latter allows digital signage network operators to either push content to many players at once or have each player pull content from a server as needed.

Developments in Web services have meant the APIs for some digital signage software now allow for customised content management interfaces through which end users can manage their content from one location, in a way which suits their requirement.

The recent introduction of free digital signage software may further expand the pool of potential users of this technology.[citation needed]

Network infrastructure

Unless the player server is located at the display, there is usually a network connecting the digital signage displays. The video (and possibly audio) is distributed to the displays through a series of wired network connections (such as Cat 5 cables) or wireless connectivity through the use of wireless adapters. When distributing through anything other than a video/audio cable, the signal will need to be converted with transmitter and receiver baluns.

To manage a network, a management server is usually required. This can be located anywhere, so long as it is connected to the digital signage network. New content will be managed and organised here, while the actual content itself is stored and played on the player servers.

Digital signage networks can either be closed or open to the Web, which will affect how the content on the screens is updated. For closed networks (without Internet access), updates need to be done locally through USB sticks, DVD drives or other 'on-site' updates. Open networks (with Internet access) can be updated remotely and stream data from other Internet sources (such as RSS feeds). The availability and type of Internet access (wireless, broadband, etc.) depends on the location and client.

Technologies such as IPTV allow digital signage to be used as a method of broadcasting. The content is played according to instructions provided by play lists controlled by the digital signage system content management server. Convergence between digital signage and broadcasting allows for real-time distribution of broadcast sources (TV) on a narrowcast network (digital signage).

Other technologies

Digital signage can interact with mobile phones. Using SMS messaging and Bluetooth, some networks are increasing the interactivity of the audience. SMS messages can be used to post messages on the displays, while Bluetooth allows users to interact directly with what they see on screen.[13].

Standards

In March 2009, POPAI released the first of three digital signage standards to promote "interoperability between different providers". "Screen-Media Formats"[14] specifies the file formats that digital signage systems should support. The objective of this and future standards documents from POPAI is to establish a foundation of performance and behavior that all digital signage systems can follow.

Issues and progress

Digital signage in the broad sense has been in use for decades in the form of LED ticker signs and LED video walls. However, despite its recent growth it has yet to become a major public medium, due in part to the following negative factors:

  1. Uncertain ROI – the costs of deploying digital signage can be high. Large outdoor screens expensive - for example, the LED sign in front of the Las Vegas Wynn Resort cost $15 million[citation needed] - but the much more common, and much cheaper, digital signs based on LCD screens can still represent a significant investment when a large network is planned: the cost of installing one screen in, say, each restaurant in a large fast-food chain could run to millions of dollars. Any investment of this magnitude has to be justified by a clear ROI plan before receiving approval.
  2. Lack of interoperability – digital signage products today are mostly closed, proprietary systems. It is difficult to advertise across digital signage networks running different solutions, making the emerging media inferior to nationwide advertising media such as television and the Internet. Due to the lack of a common communication protocol, products from different vendors do not mix, making digital signage systems expensive to build and hard to expand.
  3. Complex value chain - a digital signage network can involve at least the following vendors: displays, media player, management software, project planning, installation, field service, network connectivity, bandwidth, content creation, and advertising sales. Managing such a complex value chain is a daunting task and all parties involved may introduce risk factors to fail a project.
  4. Lack of understanding - despite considerable media coverage there remains a general lack of understanding about the requirements for the successful use of digital signage. Problems arising from this include poor content and improper type or location of screens.[15]

These issues are being addressed today in the following ways:

  1. Understanding the ROI – studies have shown digital signage to be effective in aiding customer recall and retention of displayed information[16] in large-scale merchandising applications, especially taking into account the downward trend in LCD panel and playback device prices. Today a small-scale retail or restaurant digital signage installation can be implemented for just $4-6,000, and ROI may be realized immediately.
  2. Open standards for digital signage – industry organizations including POPAI (Point-of-Purchase Advertising International) and OAAA (Outdoor Advertising Association of America) are actively developing and promoting technical standards that will make it possible to communicate across digital signage networks made by different vendors. Interoperability across systems and media players is increasing competition in the supply chain, significantly lowering costs and making the ROI on building networks vastly more attractive.
  3. Value chain consolidation - business entities have been formed to consolidate segments of the long value chain. Display units with built in media servers, content design agencies which also provide hardware and support, as well as management software which allows advertisers to manage a whole signage network are examples of how the industry is coming to work together and consolidate.
  4. Understanding the industry - there are a significant number of trade shows with conferences as well as specialized conferences and also more informal training and briefing sessions all focused on aspects of digital signage.

See also

References

  1. ^ "DOOH - Digital Out of Home". ISE Europe. Retrieved 2009-03-19.
  2. ^ "The Digital Signage ROI Calculator". IAdea Corporation. Retrieved 2008-03-11.
  3. ^ "US Digital Signage Market to Grow by One Third in 2009". ABI Research. Retrieved 2009-03-17.
  4. ^ "Do you rely on line managers for employee communications?". MediaTile. Retrieved 2009-03-09.
  5. ^ "Flasma: Moving images in the floor". Flasma. Retrieved 2009-03-09.
  6. ^ "ISE DOOH Business Conference Presentation". DailyDOOH. Retrieved 2009-03-09.
  7. ^ "Global Media Manager". Beaver Group. Retrieved 2009-03-02.
  8. ^ "Microsoft Surface". Microsoft. Retrieved 2009-03-12.
  9. ^ "Researchers develop a 360-degree holographic display". engadget. Retrieved 2009-03-12.
  10. ^ "Fogscreen: projecting images in the air". Gizmag. Retrieved 2009-03-12.
  11. ^ "Time to Put Off Buying LCD TVs and Displays". Wall Street Journal. Retrieved 2009-03-12.
  12. ^ "Digital Signage Display Costs White Paper" (PDF). Projective Marketing LLC. Retrieved 2008. {{cite web}}: Check date values in: |accessdate= (help)
  13. ^ "Interspace Integrates Bluetooth Into Airport Digital Signage". aka.tv. Retrieved 2009-03-12.
  14. ^ "POPAI Screen-Media Formats Standard". POPAI. Retrieved 2009-04-10.
  15. ^ "Tesco shuts down retail TV". digitalsignageforum.com. Retrieved 2009-03-17.
  16. ^ "The OnSpot Digital Advertising Concept" (PDF). Arbitron. Retrieved 2006. {{cite web}}: Check date values in: |accessdate= (help)
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