Digital Signage 101

Digital Signage; another video wall installation

2008-03-13T14:05:00.000-07:00

We recently had the good fortune of working on an amazing project for Eclipse Bank in Louisville, KY. They really took the use of digital media to it's maximum and it was neat to see them use not only our technology but many others throughout the branch. I am most proud of the video wall installation we did with them. Attached is a picture. Enjoy!

Digital Signage: You have to fit in fun sometimes..

2007-08-15T06:57:00.000-07:00

Yes, I'm behind on my blog posts. Yes, I know I've neglected it. To those that have visited over last few weeks looking for an update to my promised experience article, I apologize. But it is still coming!!! For now I'll post some quick thoughts on a recent project we did at Captive Indoor Media that has direct correlation to experience although when we did it I had no intention to wrap it into the direction of my blog but here goes....

In my humble opinion, experience is something that extends beyond what your customer feels when he/she walks into your branch or store. If your employees haven't adopted your vision for the experience, you may as well pack it in. Experience starts internally!

At Captive Indoor Media, I am not only consumed with our product offering but how my employees feel about working here and then consequently how that feeling extends to our customer base. Hopefully it is positive on both fronts. It takes work to achieve this.

I've had the good fortune to work for both good companies and bad over my professional life. When I reflect back, I can see how my experience with each employer affected my interaction with customers and I try to use that to my advantage as I run my business today. The one thing that seems to strike me as most relevant when I reflect on past positions is the fact that when my mood was positive towards my employer, my customers attitude was more likely to be positive towards me. They were more likely to forgive not only my personal mistakes but that of the company I worked for and that makes life easier.

With that in mind, we did a really fun creative team building exercise in the office over the last couple of weeks. Follow the link listed below to see it in action. We filmed the entire thing and then sped it up by 4000% so it only takes 3 minutes to watch. I'd like to tell you more but the link is all you need to see what we did.

Yes, I promise I'll finish the experience article although I hope you will agree that this is a decent start although a bit off the initial path.

Enjoy!

http://www.youtube.com/watch?v=tQUvUVVBD08

Digital Signage: More on the video wall

2007-06-22T06:21:00.000-07:00

Sound and Video Contractor did a rather large article on our video wall installation for the City of Louisville in their June edition. If you have not yet seen the print edition, follow the link to Sound and Video Contractor and check it out!

Digital Signage: Experience Counts

2007-06-05T06:09:00.000-07:00

Last week I was in Seattle for the MAC (Marketing Association of Credit Unions) Conference. The conference draws around 150 professional marketers from within the Credit Union industry and is always interesting. If you are involved in the industry and have never attended, I encourage you to do so.

During the conference I spent much of my time interacting with other vendors and of course customers. The one topic which continued to repeat itself during these conversations was "Experience". "You have to give people a unique experience," said one. "The branch experience is what will set you apart" said another. Ok, fine but what is the definition of experience? Not one person repeated the definition that another had given me. Interesting.

I think about things as they relate to marketing in a retail space. And make no mistake, a branch is a store. If you don't think that it is, I suggest you take a closer look at what the high growth brands are doing. The most visible brand in the financial industry today is Umpqua Bank. If Umpqua Bank doesn't scream retail store at you, I don't know what will. Heck they even call the branch a store. Take notice.

Ok, so what is "experience" in a retail branch envirionment? I guess that depends greatly on who you speak with so I guess I'll add my definiton to the mix. But before I do, give me a few lines to set it up.

From my perspective I feel marketers today need to do their best to understand technology as it applies to the marketing realm. It is no longer good enough to say to a technology vendor that "IT takes care of that". If you find yourself saying things like that often, you are falling behind. Today's technology can get you closer to your customer and allow for better and more immersive communication. But you as the marketer must recognize the benefits of available technology as they apply to your marketing initiatives. In short, you need to know enough to be dangerous with technology as it becomes prevalent in the marketplace.

OK, so what is my definition right? I believe experience as it applies to a customer in a retail environment is the ability to fully immerse them in a brand from the minute they walk in the door until 5 minutes after they have left. That means giving them interesting interactive displays (check out this link from Infinity for an example) along with informative personal interaction in a unique setting (see Umpqua Bank) and backing it up with great service. If you do that customes will be wowed by your store and keep thinking about you for several minutes after they have left your store. They will also be more likely to talk about you to their friends. That is experience.

I'm going to do some more digging on this subject and post some follow up articles over the next couple of weeks. Be patient with me though. I'll be traveling quite heavily so posts might be sporadic.

Digital Signage: Microsoft Scratches The Surface

2007-06-04T05:07:00.000-07:00

Say what you want about Bill Gates and his army in the Northwest. Call them evil, call them monopolists, call them whatever you want but be sure you recognize the significance of a product called Surface that was released last week. Surface will change the way digital signage is used in retail environments.
My view of digital signage is warped. I live it during the day and dream about it all night long. This I admit. I am wildly enthusiastic about the ever growing applications for digital signage and I’m constantly finding new ways to utilize the technology. With that said, I know, without a shadow of a doubt, that digital signage is less about technology than it is about the consumer experience the technology can create for individuals.
Surface appears to do what our industry has been championing for years but somehow falling short. That is to present a fully immersive retail experience and take the customer through the entire purchase experience in an entertaining, unique and informative way. I have yet to see the Surface product myself so maybe they have an element of spin associated with their pitch as well. I will be interested to get my hands on this product and you can be sure I’ll post my findings here when the time comes.

Digital Signage: Is the Ad Industry Going the Way of Pluto?

2007-03-26T10:46:00.000-07:00

If you read Advertising Age, you are probably familiar with Bob Garfield and his multi-year project entitled "Chronicles of the Media Revolution". As luck would have it, Mr. Garfield has added to his well authored series with a new article entitled “Chaos 2.0”.

This particular article is incredibly interesting to me because it does not simply predict (as some of his previous article’s have done) but references his “Chaos” article of 2 years ago and then diagrams out the time line of events that have taken place since that article was run. If you do remember the Chaos article, you will also remember the industry rumblings that surrounded it.

Chaos 2.0 is not only certain to send rumblings through the traditional advertising channels, but will most definitely send some for the hills. With comparisons to the recent demise of the planet Pluto and quotes from industry pros and even folks like Bill Gates chiming in, this is a must read for anyone involved in the advertising industry. And make no mistake; if you work with digital signage, you are in the advertising industry as well.

Digital Signage: Hey That Screen Is Talking To Me!

2007-03-20T14:03:00.000-07:00

I’m fresh off the CUNA (Credit Union Nation Association) Marketing Conference in Las Vegas last week and, as you might imagine, digital signage was everywhere. What was even more obvious was the use of audio in more and more installations.

The best example was in the airport. Now the Las Vegas airport has had digital signage in some form for several years. The new additions are 32” and 42” LCD panels along the security check-in gates. The screens came dressed with some heavy duty enclosures to prevent tampering and were mounted from the ceiling out of arms length. This was a major installation yet I have not been able to find the provider despite some search time on Google.

What I found most interesting about this installation was the use of sound. It was well done, creative, unusually funny and incredibly targeted. It did what digital signage is supposed to do. It entertained, informed and brought down the perceived wait time to a tolerable level (and if you’ve ever been in Mcarren airport you know this is quite an achievement). The media included funny quips from Carrot Top, Pamela Anderson and other Las Vegas Celebrities. While I’m not sure what Carrot Top said, I’m quite sure Pamela asked me to get all of my documentation ready before I made it to the security person awaiting a few paces away :).

Audio has been a touchy subject with many a digital signage installation and industry pundits pick both sides of the fence. The ones that refute the use of audio argue that it can become annoying to employees and redundant information to customers. I would agree that this is the case, especially in retail situations where repeat customers exist and employees are in constant ear shot of the screen. However I could easily suggest that this can be avoided with diligent management and production of new, creative and entertaining media. So now it comes down to budget and employee resource available to manage a digital signage system.

Proponents of the use of audio might say it is an integral part of a marketing campaign. After all, television and any form of .mpeg video is most likely going to be heavily reliant on the audio to reinforce the visual message. This is also true but I could argue that other types of media such as Flash have a more functional use on a digital sign while requiring less bandwidth and offering a wider pool of talent to pull from for media as well as less money to create.

So what is the answer? To me it is clear. You need to do 3 basic things:

1- Be Creative- If you want to use audio on your signs, be sure that you have the resources to constantly create new and entertaining media. This is not a :30 TV commercial run once a day during the local evening news.
2- Be targeted- You have to know your audience. By this I don’t mean just demographic. I mean you need to understand dwell time, situational circumstances and environmental influences. The airport in Las Vegas has the luxury of using the same media for a longer time than the local Bank because the airport customer might not be back for days weeks. The Bank is well…. “banking” on regular customer visits (Sorry for the bad joke)
3- Be Different- You must, have fresh content on a regular basis. Yes, I know this is a repeat from #1. But it needed to be said again.

Digital Signage: LCD vs Plasma

2007-02-04T10:32:00.000-08:00

I came across a great article in Self Service World about the use of LCD vs Plasma in digital signage applications. It does a good job of briefly explaining the differences between the technologies as well as outlining what industry folks have to say. You can find that article here.

Digital Signage: More on the video wall

2007-01-31T15:23:00.000-08:00

As promised, I'm posting pictures of the video wall installation we did for the Louisville Convention and Visitors Bureau. We will be releasing this product to the masses in a month or so. In the meantime, enjoy the pictures and if you are ever in Louisville, you can find this installation at 4th and Jefferson in downtown Louisville, KY!

Digital Signage: Are Digital Billboards a Driving Hazard?

2007-01-22T07:09:00.000-08:00

I came across an article at MediaPlannerBuyer.com that goes over the growing concern with digital outdoor billboards. According to that article, digital billboards are expected to grow from a current install level of 400 to 4,000 over the next 10 years. I actually thought that projection was low but I should mention I have not seen any other numbers on which to base my opinion. The article goes on to suggest that digital billboards demand more attention from the driver therefore making them less focused on their driving situation. You can find the article I’ve referring to here.

This article was timely for my company. Captive Indoor Media recently became involved in a video wall project that faces a high traffic intersection in Downtown Louisville, KY. Although not a traditional digital billboard, that project needed a lengthy project review by the City of Louisville before approval. During that process, they invoked limitations on media that could be displayed but little else.

Our project involves eight, 46” LCD screens stacked 2x4 and positioned in a corner of the building that faces the street through floor to ceiling glass windows. The intent of this project is to grab and retain the attention of passersby and the potential hazard introduced at the intersection was a concern for everyone.

Iwill post a picture of our project once installed. That is scheduled to happen this week :-).

Digital Signage: A few tips for attaining good A/V contractors and a quality installation process

2007-01-18T09:43:00.000-08:00

Digital Signage is all about software and content right? That is what your customers are seeing and ultimately the benchmark of success right? Easy to use software, great content and a plan to execute is all I need to get up and running right?

Ok, stop right there. If we can reverse that order and start with “A plan to execute”, now we are on pace. And one of the most integral yet often overlooked aspects of that “plan” is the question of who is going to hang the screen on the wall, hook up the player and service that equipment over the coming days, weeks and years. “No problem” you say, “we’ve got the guy to do it.” Ok, but what happens when you have an installation of 400 screens in 5 states on 200 walls within a tight time frame and in varied construction scenarios? Hmmm. It gets a bit more difficult doesn’t it?

With that question in mind and several scenarios which closely adhere to the above characteristics, I thought it would be beneficial to post a quick list of elements key to a good installation.

1- Work with a known partner

As a company we have used both individual A/V companies and networks of A/V companies provided by an aggregator. The aggregator’s job is to screen the contractor used for each installation and then help project manage the entire process. While this seems to be the most logical approach for implementing large orders, it also presents the most pitfalls. There always seems to be finger pointing and never a firm allocation of fault when a problem happens.

At Captive Indoor Media, we have assembled a team of A/V partners over the years which we work with on a regular basis. Today our network of partners spans across the country and we handle project management in-house. Through the combination of an existing relationship and a single point of contact (us) for our customers, our projects run much smoother and when we do have problems, we can handle them without all of the finger pointing.

2- Make sure the Audio/Visual contractor has experience with Digital Signage

This is absolutely critical if you cannot utilize an installer that either you as an end customer or your software vendor can provide. In these cases, it is necessary to have a qualified person on hand to check the basics from signal quality to the screen and dB levels for audio to network connectivity for the player. When you do use an unknown company, their experience with most any digital signage product should be a key component of your due diligence as to their ability to install a system cleanly, professionally and quickly.

3- Have a punch list

Here is the reference to my initial comments about executing a plan. Part of the process is the up front work which includes site surveys and a concrete set of requirements for each installation. Is the screen always 8 ft’ above the floor centered behind the tellers or are there deviations? What are the power requirements and is there any existing infrastructure the system can piggy back on? What happens when a truck shows up and things are slightly different than agreed upon when the punch list was created? Do you allow that vendor some flexibility to install anyway or do you have them come back at a later date? Who is responsible for configuring the network connection for the player and who will take the call when that connection is not allowing traffic for the player? These are just some of the obvious questions that need to be covered up front before work begins. Those questions set up the document which lists a set of requirements to be met when an installer begins at each location. When each of those requirements are met, a manager at the location should be required to check each to ensure they have been done and then agree that work is complete with their signature.

4- Have an experienced Software Vendor

As much as I would like to preach that Captive Indoor Media is in the software and content delivery business, we are also in the project management business. We carefully follow progress of each project, big or small, and manage constant communication (both verbal and documented) between all parties involved. Experience in this area should be a part of any vendor selection.

5- Maintain Consistency of labor

When large installations are taking place, we try to assign project teams that will gain efficiencies over the course of the installation project. It seems common sense to claim that 5 teams doing 40 locations each will be moving much faster on locations 30-40 than on locations 1-10. They gain confidence, relationships and knowledge which ultimately transcends to a good, clean installation. If there are constant changes in labor, it is more difficult to attain efficiencies and consistent quality.

Digital Signage: When you peel the layers… It seems like everyone is adding layers…

2007-01-16T09:08:00.000-08:00

Ok, ok, before your eyes glass over about another blog post concerning Cisco digital signage, just give me a few minutes to explain. I’ve got an idea here and maybe we can learn something from all this Cisco news.

For a couple years now I’ve thought that the key to building a successful digital signage product and therefore company is to ensure the ability to layer service on the software platform without great expense or deviation from the business model. In the case of Captive Indoor Media, we have acted out this approach and currently deliver everything from content creation to syndicated news feeds and touch screen applications all with the intent of adding value for our customers while increasing our average bill (yes, we are trying to make some money).

Take a second to admire the cell phone/PDA/MP3 Player in your pocket to get a glimpse inside a successful business model based on layering services in the face of margin attrition. That device probably looks much different from the brick like thing you carried just a few years ago and the service you receive today most certainly is.

Cell phone providers 5 years ago were selling little more than voice service with varied packages for roaming and long distance. Today long distance is free; roaming is a word used mostly for cattle and every mobile service provider I know of is pushing email, fast internet access and text messaging. In the face of product price attrition, they layered new service and retained or increased the average monthly bill. In my unfortunate case, I have actually seen a pretty steep increase in my bill but the service is so necessary to my day to day activity I would probably pay double if I had to.

As Digital Signage continues to get more competitive (300 vendors and counting) we will certainly see pricing come down within the more commoditized digital signage products such as remote access and scheduling capability. Success will be based in the ability of each company to introduce compelling service products which ride on that company’s software backbone and deliver further value to their customers while also increasing the barrier to entry for the competition.

OK, now it’s time for the Cisco reference. Cisco is not in the digital signage game just to start developing content and fulfill delivery of that content. They want to sell the whole kit and caboodle. They want to add on video to the desktop. They want to add VOIP and teleconferencing. They want to sell digital signage not as a unique technology (pssst. It is not new anymore nor unique) but as a means to an end (gulp). They have the expertise, money and capability to plant customer flags fast and implement with speed and precision. Once the flag is planted, it is time to farm the account and sell every product they can over as few platforms as possible.

The good news is that Cisco is big and most of us are small. Well all of us are small in the face of that logo. We will be the ones innovating and they will be the one’s purchasing and consolidating the industry. In my humble opinion there is plenty of room for both of those activities in the coming months and years. We shall see.

To read the article that prompted this post, please follow this link

Digital Signage: Shark in the Water...

2006-12-15T06:34:00.000-08:00

This morning an article was posted to The Street.com which announced the official entrance of Cisco Systems into the digital signage market via the acquisition of Tivella. Whoa..... if ever a validation of the market was to be made, this is it.

I guess this is really no suprise. I've been to several tradeshows of late only to find Cisco teatering on the edge of a true digital signage product via their new ip telephony and training applications. They have also drilled me with questions and I had a suspicion their interest was beyond just learning about the space.

Now I don't know much about Tivella but a quick read of their site tells me their product is more geared towards the Corporate Campus. It is also built from the ground up on Cisco equipment and technology. Another check mark on the "makes sense" scale for a Cisco acquisition.

My conclusion on this announcement is that the consolidation game is on for real in the Digital Signage space. The race has been on years now but the big boys are going to start coming hard. We only have to look at NEC, Planar and now Cisco to see that writing on the wall. This is definitely a good thing for the industry. More money, more talent and certainly more visibility will propel our products and opportunities at an even faster rate than before.

If you would like to read the article about the acquisition, you can find it here

Digital Signage: Ad Agencies Say They Are Taking the Leap; Sounds good to me!

2006-12-01T07:22:00.000-08:00

I’ve been in the marketing business for quite some time now and I’ve always pushed a non traditional product of some sort. I fully believe that the more unique the promotion can be, the more memorable your product will be. I also continue to preach that the combined effect of a unique and memorable promotion will make for a more successful impression on your audience. The problem is that the “unique and memorable” media vehicles are often difficult to measure, lack the longevity necessary to prove a concept and do not offer the reach needed to create the buzz across a brands target audience which exceeds the expense of each event. In other words, you might remember the inflatable Dean’s milk bottle mascot at the football game (obviously I do) but there is little chance you will find Dean’s Milk dumping the greater percentage of their ad budget into funny mascots.

Now please do not misinterpret my comments from above; I am not comparing an inflatable milk bottle to digital signage. But I am saying the in many respects we have been lumped in with other interesting and innovative advertising vehicles that are believed to make an impression but have yet to be measured with any uniformity.

Digital signage, in my opinion, has been a bit of a leap of faith on the part of both vendors (like me) and customers that implement the technology. By leap of faith I mean that we have been pressing along without the advantage of hard statistics generated from years of studies performed under the direction of similar or universal rules. As I’ve repeated many times on this blog, until we have a set of principles in place, the fragmented state of our industry will remain. This fragmentation becomes particularly challenging as advertising agencies start to take part in the review and introduction of digital signage products for their customers. .

Ad agencies are in business because they sell and create media. That media might be in the form of a local ad in a small newspaper or a Super Bowl ad. Regardless, when they go to a multi-million account for approval of their media plan, they are hesitant to risk the entire account for an untested vehicle. That has been the state of affairs for many decades but a recent article from Adage suggests things might be changing a little.

Today, no one can deny that grabbing the attention of a consumer via advertising is more difficult than ever. In order to be successful, a brand must be focused in their message, placement and delivery. Advertising agencies know this and are eager to find a vehicle which can alleviate the declining rate of return being presented by traditional Print, Radio and TV. With that in mind, they have turned at increasing levels to digital forms of media.

To date the digital media I just referred to has been on the internet. That media has also been effective and measurable. I think it would be difficult to find an agency of any scope which does not have a department dedicated to purchasing of media on the internet as well as generating media plans which include increasing percentages of budgets directed towards online initiatives and advertising.

From my perspective, the success of this media sets the stage for Digital Signage to be the next great vehicle. We still have a few years to go until true convergence comes to fruition but we are getting close. One by one we have to each continue to push customers, vendors and agencies to take the leap of faith. If we can do that, statistics and principles for gathering statistics will certainly emerge. That emergence will close the chasm which sits below the person or entity taking the leap of faith with Digital Signage.

You can find the link to the Adage.com article here .

Digital Signage for Banks: A Report from the BAI Retail Delivery Show

2006-11-22T08:21:00.000-08:00

I spent last week exhibiting at the BAI Retail Delivery Show in Las Vegas. For those of you not familiar with BAI, it is the largest show in the financial industry which is focused entirely on technology designed to improve the customer experience at the retail branch level.

I’ve been to this show before and it is always interesting. You see everything from Check 21 systems to ATM’s and fraud detection systems. But this year, the growth of digital signage at the show was very interesting. The expected names in the industry were on hand but the thing that really grabbed my attention was the attempt by other product vendors to make an effort to consolidate digital signage technology into their products.

This was most visible among coin counting companies like CoinStar and Magner. Both showed up with an approach to digital signage yet each was very different. I had the opportunity to speak with the founder of Magner during the conference and he is making use of an existing software product from AdCue which controls his counting system as well as displays messaging during the wait time associated with counting the coins. I think this has value.

Magner took the path of least resistance. They simply mount a 32” LCD to the top of their coin machine and then AdCue integrates their software with that of Magner. I was not able to confirm if they connect the units to the internet on every installation but I assume that they push for it. AdCue functions much like our product and it is necessary to utilize the internet for media updates.

As for CoinStar, they went to the opposite end of the spectrum from Magner. While I’m not sure what software package they are using or if they wrote their own, what is clear is that they are serious about selling digital signage with their product. CoinStar fully integrated a screen into their coin machine.

Here is where I will admit my ignorance of coin counting machines. I have never even opened up the cabinet of a counter before. With that said, I feel confident that there are plenty of moving parts in there and it probably creates some heat and vibration. Unfortunately heat and vibration are both enemies of digital signage systems. That being the case, I have to assume CoinStar spent some time and money to develop a product that will be stable and reliable and that can’t be cheap. I guess time will tell as to whether they get their money out of the initiative.

Regardless of the true success of this approach, I find it very encouraging to see more and more vendors embracing digital signage as an augmentation to their product portfolio. If you have been reading my blog, you will remember my recent post about vending machine integration. To me this is very similar as it validates the strength of the digital signage within the retail space.

I expect to see many more attempts by myriad manufacturers over the course of 2007 to integrate digital signage software with their offerings in an effort to maximize the retail impact of their products as well as offer additional ROI opportunities.

As always, I will post those findings when I come across them.

Happy Thanksgiving!!

Digital Signage: ABA Study Confirms Budget Growth

2006-11-21T11:32:00.000-08:00

A recent study published by the ABA (American Banking Association) definitively states that marketing budgets among community banks has been growing for the last few years. According to the study, budgets grew with in banks with less than $100 million in assets by 61.5% from 2003-2005.

As a company we are very involved in the financial industry and I have no problem believing the numbers quoted in the study. Now I need to find some numbers on what percentage of marketing budgets with in the space is being allocated to alternative media and digital signage in particluar. I am hoping the second part to Steve Platt's initial study released last month will give some insight to this. You can be sure I will post the new study (at least what I can) when it is released.

In the meantime, you can find the full ABA study here

Digital Signage: A Framework For A/V Contractors

2006-11-14T06:34:00.000-08:00

I came across a good article from Pro AV Magazine this morning which covers many of the issues involved in selling and fulfilling a digital signage project. As the article suggests, digital signage is cretainly a growing wave in the A/V world, but it still remains little understood.

I suppose that any technology in it's beginning stage should expect to have some confusion populated in the marketplace. It is not that we don't have knowledgable professionals working hard to ensure education of the market happens, but the speed with which changes are taking place within the digital signage industry. Our application has had 7 new releases in 2006 and we're expecting 2 more before the end of the year. The challenge of keeping just employees up to date on that type of change is daunting enough. Now take that example and multiply it by the mountain of competitors which exist or are entering the space and it becomes clear that the digital signage industry has it's hands full as we grow.

The good news is we don't have to look too far in the past to see examples of this scenario. I compare it to the telecommunications industry in the late 1990's. Back then, equipment and capabilities changed so quickly, it was possible to quote a solution one way and 3 weeks later have a totally different approach available for the same customer. Then the challenge became to determine which one best suited the requirements of the customer and deciding if the introduction of a new solution would add vvalue or cause confusion on the part of the customer. In the end, some telecommunications providers would suggest the newest solution and others would go with what they knew. It was very possible for an IT professional to face a decision to go with the newest (but unknown) or the standard (but possibly less effective) solution. The problem was, the decision they made also controlled their job stability.

I don't think Digital Signage has quite reached the now ubiquitous critical nature of internet connectivity and dial tone but I'm not sure we are far away from that. As more installations such as the one described in the Pro AV Magazine ( University of Tennessee's Football Hall of Fame) take place we may start to face the same issues on a bigger scale than they exist today.

Click here to find the article written by Mike White of Multimedia Solutions

Digital Signage: Equipment Plays Role In Exposure Growth

2006-11-07T07:27:00.000-08:00

An interesting article was published the other day by Automatic Merchandiser regarding the growing interest in digital signage among vending machine companies. To me this is a natural fit and I look forward to seeing it work.

But regardless of this initiative's long term success, the attempt by several manufacturers within the space is an initial validation that digital signage has a place in most any retailing experience.

The full article can be found here

Digital Signage: This Smells Big

2006-10-31T05:50:00.000-08:00

I'f you've ever walked down the aisle of a grocery store with a specific task in mind only to find yourself enamored by the smell of the pig in a blanket stand 2 rows over, you've experienced the power of the olfactory sense (smell) within a marketing program. Now it seems, some big names are taking the power of smell to the next level and some of them including digital signage.

Advertising Age published an interesting article this morning about the growing number of companies taking an aggressive approach at an age old tactic. One such company, called Smellavision (sorry, I couldn't find the link to this one) says they are going to 8,000 "scent delivery systems" in Kroger stores over the course of 2007. And if that isn't ambitious enough they've also named 2007 "The year of the scent" :).

Whether you take this approach seriously or not, the likes of Mars, P&G, Kraft and Pepsi Co. are giving it a sniff. Those brands do "stink" of enough cash that they would be able to support the introduction of such systems. It will be interesting to see if the scent of this one lingers or fades away like the smell of the last cold pig in a blanket from the sample stand.

The article in Ad Age can be found here

Digital Signage: Minicom Gets a Mighty Investment

2006-10-26T06:03:00.000-07:00

Anyone involved in digital signage knows that the flow of investment capital into the market is growing at a fever pitch. It seems that anyone with a decent bank account, or access to one, is starting up a business and putting their proverbial hat into the digital signage ring. Most of the investment news has centered on new product launches and new start-ups or, more recently, acquisitions. I guess some of these new products must have had some sticking power because some traditional players are raising money and ramping up development and sales efforts. Minicom is the latest.

Minicom is an Israeli company that has been around for many years. Their core product category has been in the Audio/Video space and it sounds like digital signage applications have been good to them so far. The company manufacturers equipment that helps to amplify and distribute video signal over CAT5 which greatly increases the viablity of digital signage applications where distances from the player to the screen(s) are greater than 50 feet.

With that solution in hand, as well as several other strong KVM products, Minicom went to Intel Capital and raised $7 Million in Venture Capital. The article from Globes Online does not specify if the investment will focus on digital signage products or the other areas of it's portfolio but I'm guessing the digital signage industry is playing into this move heavily.

Digital Signage: We're Snowballing Now

2006-10-24T06:40:00.000-07:00

The digital signage advertising model seems to have no limits. Companies have put them in bars, malls, bathrooms, and everywhere in between. Now comes along a company that has decided to put a bet on installing digital signage in the lift lines at ski resorts across North America and beyond. That company is called Sitour.

When I first saw this article I had no idea who Sitour was. It turns out that they are a multinational company involved in selling advertising at over 1,000 resorts in 14 countries. Wow. Oh yeah, they've been around since the 1960's too.

Now I've seen a lot of advertising models based on digital signage over the last few years (uhh umm, I'm guilty of trying it as well...) and most of them have failed or are floundering. If you've read my blog before, I have repeated the fatal flaw of advertising business models. That flaw in my opinion is lack of scale and reach offered by fragmented network operators. Without the scale of many hundred displays it is not possible to offer the reach required by large advertisers which is where the real money is. From the looks of Sitour, we may have a player beyond Walmart and Captivate Networks that can give some solidity to digital signage as an advertising medium.

For now I'm happy to sit on the sidelines and watch how the advertising model develops. I'm convinced it is here to stay but I do think further maturation is necessary before we see a true convergence. This is certainly a step in the right direction.

The article I came across on this subject was Media Life Magazine and can be found here.

Digital Signage: Statistics for Banks

2006-10-23T07:17:00.000-07:00

The most recent publication from the American Banking Association's "Marketing Journal" included an interesting article from the highly regarded Platt Institute about the use of digital signage within a branch.

The article itself lacked in specific measurements but was quite informative about the method which financial institutions should employ as they consider the implementation of a digital signage network. For those (like me) that have experience working with financial institutions the emphasis on method rather than hard numbers will not be a suprise. As the article suggests, each instution needs to develop their own specific agenda and execute their digital signage initiative according to that plan.

With the above said, I hope the next article published by the ABA in conjunction with the Platt Institute will have gone through the motions with several institutions on method and measurement. Although it is certainly a challenge to generate solid numbers from an industry that does it's best to sell "relationship" and not "product" like banks, I hope that as time passes the real numbers will start to graduate into the public forum.

You can find the ABA article here

Digital Signage: As Panel Prices Decline, Signage Shipments Increase

2006-10-20T06:48:00.000-07:00

According to a study released today by iSuppli, combined shipments of flat panel displays and digital signage are to increase at a CAGR rate of 3.6% through 2010 and produce revenue of 13 Billion. That number is up from 10.6 Billion in 2005.

The study goes on to project a continued decline in pricing for flat panels but does not make mention of price pressure for digital signage software applications. It does estimate that the market for digital signage applications will grow at a blazing 24.1% CAGR. A Compounded Annual Growth Rate of 24.1% over a 5 year period is phenomenal. I suppose we will need to wait and see what happens.

To find the full article, follow this link to DigiTimes.

Digital Signage: Impart "parts" From Advertising Model

2006-10-17T06:15:00.000-07:00

Impart Media Group released comments about anticipated 4th Quarter results early yesterday in a press release stating they have changed their business model. Impart had a heavy weight towards advertising revenue and had made a strong push to establish itself as a leading network operator of digital displays over the last 18 months.

If you look at Impart's 2nd Quarter results, it is easy to see why they have had a change of heart. Although revenue increased by $700,000, their net loss went from $161,00 for the first 6 months of 2005 to an incredible $5.9 million loss for the first 6 months of 2006. To be fair, it appears they made a few acquisitions along the way but let's face it, a cashflow negative company balloning their loss to 5.9 million over 6 months is a monster issue to face regardless of future revenue projections.

I believe the lesson to be learned here is that the advertising model demands that the cost of the equipment necessary to operate such a network must be absorbed by the customer who hosts the equipment. In otherwords, convince the venue of the value of the software for their need and then sell advertising as a way to offset the cost of the equipment and software. Unless the location has some "skin in the game" they will be reluctant to help with advertising sales, equipment upkeep and other issues that may arise.

If the value delivered is software first and advertising second, I believe the medium has a chance to proliferate at a much quicker pace.

Digital Signage: Let's Define & Measure not Measure and Compare

2006-10-16T08:11:00.000-07:00

If you've visited my blog in the past, you've probably come across an article or two about statistics. Statistical data is the key success factor to any form or media. It is what fuels value in the eye of the media buyer both within Fortune 500's and small Mom & Pop stores. Without a benchmark to reference, the successful sale of an advertising or marketing vehicle will be difficult at best.

Thankfully, the Digital Signage industry is now at the point of transitioning out of early adopter technology and into mainstream. With this progression, there have also been a flurry of statistical studies. Over the last 2 months alone it seems like the study of Digital Signage has really ramped up and it is very encouraging. The problem is, the industry can't seem to decide what is mainstream.

Is Digital Sigange an advertising tool which generates revenue from the sale of time on a network of screens? Is it a corporately controlled medium designed to push product at the right time and in the right location? Is it an interactive technology which executes a transaction itself? Is it a combination of all three? The answer is probably a little of each. But more important than coming up with one complete answer as to the targeted use for Digital Signage, I tend to think we need a set of measurements relative to our medium which will help both vendors and consumers to hash out useful applications.

The above soapbox type rant is a product of an article published this morning by Media Post. The article is a basic overview of the recent survey by BIGresearch entitled "Simultaneous Media Usage Survey". The survey is meant to be a representation of 'In-Store Media" and it's influence capability on consumers within a retail environment.

The study itself is very informative but I would be interested to know the metrics used to compare what they call "In-Store TV" as it compares to the other marketing vehicles included in the study which cover everything from "Product Sampling" to "Parking Lot" and Sidewalk Events". As our industry grows and large deployment implementation decision cycles acclerate, we are doing ourselves a disjustice to allow traditional metrics to control our medium's success.

In the end, we must respect the traditional statistics and work to understand how Digital Signage can best augment the reach of a customer message.

The article from Media Post I've referred to in this posting can be found here