There has been a great deal of talk over recent years that the digital signage industry is finally “crossing the chasm” of early adopters and pioneers into the mainstream. We believe that this process is now underway and that the growth in the industry that has often been predicted is materializing.

We believe that this is based around five key factors:

a) Clearer understanding of the benefits of digital signage by sector.

When any new medium arises, it tends to use paradigms from old media to launch the new medium. For example, television borrowed from theatre and the Internet borrowed from magazines. This continues for a while until the new medium begins to create its own vocabulary and changes things in line with the way consumers use the new medium.

Similarly the DOOH space initially used the paradigms of billboards and television when it first launched. While these paradigms may be appropriate in certain situations, it is only now beginning to re-invent itself as its own medium meeting the specific needs of consumers in a place-based way.

There is now a much clearer focus on understanding the role and objectives of the network it is an advertising, merchandising and information network with clearer metrics on measuring the ROI.

This also spills through into understanding how the signage network will work in different environments and how the customer should be addressed. Advertising has classically gone through four phases: interruption, entertainment, engagement and dialogue. In the first phase, the ad interrupts what the consumer is doing and often forces them to watch the ad. This was the classical television advertising model of the seventies where consumers had no choice but to view the ad.

The eighties marked the start of entertaining advertising where the consumer wanted to see the ad and received a payoff from it. The Internet moved things along in the nineties towards an engagement model where the consumer focused on ads that interested them and they became more engaged with the products. Finally in the last few years brands have realized that advertising is about a dialogue with the consumer. Mobile and social networking technologies facilitate this ongoing dialogue.

Digital signage can also use these models effectively in different environments. For instance, in environments with a fast moving audience (outdoor, transport hubs, malls), the interrupt model still dominates the out of home space. In areas with a higher dwell time (cinemas, beauty salons), you start seeing more of an entertainment and engagement model while in other specific areas of healthcare, some retail environments and food services you can now move towards an engagement and dialogue model.

The dialogue model is being used effectively by some digital signage providers. For example, EnQii partner with Ping Mobile, who link the digital signage software to their mobile marketing infrastructure. This allows viewers of digital signage ads to respond and interact using their cellular or mobile handheld technology.

This type of strategic analysis of the networks allows the operator to ensure the best content is delivered in the most appropriate fashion to get the desired result.

b) Maturing of the technology and content

Another area that is driving the industry forward is the maturing technology. Historically, the industry has moved from unconnected DVD based networks to simple connected networks to more complex networks with sophisticated advertising scheduling.

Going forward, it will be important that the network owner has technology that utilizes the basics – it needs to be scalable, reliable and secure. But it also needs to be an open platform that allows third party and internally developed applications to link to it to provide cost and revenue benefits. EnQii, for example, has always been a believer in open API’s (Application Program Interfaces), which allows customers to create front ends that link to the software so that they can link into their own workflows. This also allows linkages to “best of breed” systems such as ordering systems for digital menu boards, wayfinding, ePOS and queuing systems on an as needed basis.

Finally, the technology needs to be easy to use, but complex enough to perform all the key tasks needed. This is no mean feat, as the software has to be used by marketing professionals as well as systems administrators. The wrong design fill frustrates both types of users, whereas the right design will ensure neither of them notice the complexity.

The content has also matured. Initially networks often put up TV or stills that they had available. However, current networks such as Footlocker, Care Media, Harley Davidson, and the WHEN network are realizing that ultimately what matters is that what is seen on the screen and a deep understanding of customer behavior will allow the networks to get the best results.

c) ‘Serious’ companies beginning to invest in signage networks

As is typical for companies “crossing the chasm”, network operators have gone from an entrepreneur with a dream and some family funding to large multinational companies beginning to invest as well as financial companies putting serious investment behind networks.

This is important because a lot of early failures in the industry’s experimental years have been from entrepreneurs who secured a good estate and some financing, but they made the mistake of assuming that they could build advertising revenues as they rolled their network out. Typically ad revenues come in on a stepped basis over time. Ideally, networks need a certain critical mass which is dependent on the advertising strategy (national, regional, local) and the desirability of the demographic before receiving any revenues. Hence, there is a need for adequate funding to bridge the gap to that critical mass as opposed to assuming ad revenues will flow as soon as just a few locations are installed.

In the last six months we have seen companies like McDonald’s and well-financed companies like Care Media and Zoom all invest in the space. These rollouts bode well for the industry, especially in recessionary times. The food services sector, healthcare, hair salons and a few others continue to do well in a soft economy as the network operators realize the importance of staying close to the consumer and influencing their purchases when dollars are tight.

Finally, the ad agencies have also started to set up dedicated divisions for digital out of home with Kinetic and Posterscope taking the lead in this area.

d) ‘Serious’ suppliers providing a full service

The flip side of serious network owners is that of serious suppliers. Historically the digital signage industry was a bit of a cottage industry. Over recent years this has changed and EnQii was set up specifically to create a leadership position in the space. The focus moved from hardware to communications – having a deep understanding of what signage works and what does not and how to get the best return. Operating as a global player and being well funded became the focus in order to be able to invest in the best technology for the customers. It became about creating the best partnerships and offering a full service solution to large networks. The idea is to let the networks do what they do best – monetizing their customer by offering the best service and content while allowing the service provider to do the rest and minimize the risk of the venture.

e) The view from China

Finally, the growth of DOOH in the Chinese market has proved that there is a real business there. Focus Media is generating close to $400m a year in revenues and has bypassed many of the agencies to go directly to advertisers for a large portion of this money. AirMedia had revenues of $119m and Vision had revenues of over $100m. While some dynamics in China are different – for instance, there is a higher propensity for out of home consumption – it proves that there is real money to be made in these businesses.

In summary, optimism remains about the growth of the DOOH sector and the belief that it will continue to accelerate as all involved learn more about the medium and how the consumer interacts with it.

NEW YORK — EnQii has announced that it will be rolling out significant digital signage networks with the following new clients in the food services, health, retail and leisure sectors.

1. McDonald’s has completed its trial and is expanding the digital signage network in their restaurants in the U.K. to enhance the in-store experience and raise sales through digital merchandising. Initial results have shown a positive uplift for their sales and impressive ROI.

2. Care Media is one of the largest healthcare operators in the U.S. with screens in pediatric and women’s health centers. They are following an advertising model as pharmaceutical companies are finding DOOH an effective way to reach their customers.

3. EWI Worldwide, one of the leading U.S. designers and manufacturers of in-store merchandising and retail environments, has selected EnQii as their digital signage solution partner. EWI Worldwide’s Digital Media Solution is being deployed in major retailers, financial services and other shopping venues.

4. AMF Bowling is a leisure operator in the U.K. and chose EnQii to develop their digital merchandising strategy and provide screens in their bowling alleys to promote merchandise products available for their clientele.

5. DC Lottery is a major lottery operator in Washington DC and selected EnQii to deliver digital signage to promote their lottery products.

6. Sports Display is a company that runs activity and information centers in sports and retail locations in the U.S. They chose EnQii to launch advertising based screen products.

7. Health Media Network has screens in hospitals in the US and is using EnQii to deliver an advertising based network.

8. Prime Digital Media is Australia’s number one digital out–of–home media company and has joined forces in a comprehensive partnership with EnQii designed to employ EnQii’s EnGage technology across its DOOH media networks.

9. Village Roadshow is Australia’s largest operator of cinemas and theme parks and chose EnQii for advertising and merchandising screens in their cinemas.

10. Gloss Media has appointed EnQii to roll out their digital signage network in beauty salons, initially across the New York area.

NEW YORK — EnQii Holdings, a global leader in the use of innovative media, services and technologies for out-of-home digital media markets has announced the addition of 10 digital signage network accounts with the new clients in the food services, health, retail and leisure sectors.

McDonald’s has completed their trial and is expanding the digital signage network in their restaurants in the UK to enhance the in-store experience and raise sales through digital merchandising. Initial results have shown a positive uplift for their sales and impressive ROI.

Gloss Media has appointed EnQii to roll out their digital signage network in
beauty salons, initially across the New York area.

Datacasting is emerging as an attractive alternative to DSL, satellite and cellular connectivity for digital signage/DOOH network operators because it combines the cost-effectiveness of multicasting with the addressable media transport associated with DSL/Internet. Datacasting offers the rapid, low-cost deployment that makes cellular attractive, but can provide much higher connectivity capacity and speeds.

One of the major players in this area of the digital signage industry is National Datacast, a commercial, wireless data broadcasting subsidiary of the Public Broadcasting Service (PBS). NDI has acted as a content delivery provider since 1988, but is turning its capabilities in connectivity service and media management to the digital signage and digital out-of-home sectors. National Datacast provides regional or national connectivity through partnerships with PBS member stations and their satellite networks.

While digital signage software from firms such as BroadSign, EnQii, Harris, Scala, STRATACACHE and others can provide flexibility and ease of use in designating display groups and specifying content spots for playout on even individual displays, I believe past connectivity options have not offered a cost-effective combination of network-wide media fueled with fast, player-targeted download.

Today’s connectivity model is a fundamental element of digital signage, in-store TV and DOOH dynamic displays since centrally-controlled networks are “media-fueled” to present information or ads according to pre-defined, often day-parted playlists.

The typical architecture is to forward media spots and a playlist file from a network operations center to media players at display locations, and then to add live inputs from databases or external feeds such as weather, news, sports scores or financial information.

Internet connectivity, such as DSL, and cellular treats each media transfer as a separate connectivity transaction, and as such requires large connection capacities to process network traffic.

Multicasting, the transmission of the same files to multiple locations at the same time, can offer media transfer value, but can add an overhead to media management at each location.

The datacasting model NDI’s datacasting network (short for “data broadcasting”) uses digital file transfer techniques that are similar to delivery of content via other means – that means a digital signage player can readily utilize content files delivered by datacasting. Datacasting applications are numerous and include transfer of video and audio files, corporate digital file transfer, updating of software, gaming and information, training and education, alert notification, safety and security and information services.

Datacasting empowers the capabilities of available software tools and offers operational cost-effectiveness that can allow digital signage/DOOH network operators to expand networks and better apply their day-parting capabilities.

This reliable, national infrastructure of commercial-grade digital connectivity has been used by a long list of clients such as Movie Gallery, Update Logic, TV Guide, Microsoft, Disney, VISA, IBM and others.

The receiving equipment is also very simple in nature. A standard antenna is connected using coaxial cable to a specialized digital television receiver which is then connected by USB to a media server or on some other type of content processing computer/ display. The antenna and receiver typically costs under $200 retail.

Other datacasting service features important to digital signage/DOOH network operators include:

Nationwide coverage that allows network operations in multiple regions to be provided by a single connectivity operator.

Transmission reliability is not affected by user volume, cable breaks or environmental conditions such as rain, snow, smog and dust.

Multicasting allows satellite transmission to deliver value to a large network deployment.

Multiple file formats can be transported, reducing the need for transcoding or file re-formatting, which increases overheads and can degrade playout quality.

Security at the highest level associated with an enterprise application.

The NDI Network Operations Center (NOC) can manage media distribution in any predefined display architecture.

Their Top Ten List is as follows:

=1 Cisco
=1 EnQii
3. Broadsign
4. C-nario
5. YCD
6. ScreenRed
7. Scala
8. Remotemedia
9. TELentice
10.Stratacache

Some of the criteria used in the DOOH’s choices were:

Please read the entire article; it will not only clarify all of these things; it will also give you lists of other digital signage companies that bear watching!

The Daily DOOH’s article can be found right HERE.

Entitled “Creating Competitive Advantage with In-Store Digital Signage”, the half hour speech at 3:00 P.M. is designed to point attendees in the best direction regarding the use of in-store digital signage.

Armstrong will be joined by Bernie Shimkovitz, president of Alliance Financing, in order to demonstrate various business models and how to avoid the traditional up-front capital expenditure (CapEx) outlay for a network.

“This is an excellent platform to convey some of the knowledge we have amassed at EnQii about digital signage,” Armstrong said. “I’ll be showing how to drive increases in core metrics such as conversions and sales uplifts, as well as putting teeth into cross-channel merchandising. And both myself and Bernie Shimkovitz with be talking about the effectiveness of digital merchandising when applied to financing options.”

Enqii was recently rated #1 of the Top Ten Digital Signage Vendors, according to the Daily DOOH.

EnQii has a customer base of over 100 customers in 14 countries, and a proven track record of over a decade.  This is due to EnQii’s RemoteTransfer™ software, which has had no system outages since its launch, in spite of a 75% increase in network traffic in 2008 alone.

“We have been aware of PDM’s outstanding work in the Australian marketplace for several years, and are delighted EnQii has been selected as the technology partner to support their remarkable growth,” said EnQii vice-president Asia Pacific, Joe Rossi. “We are also pleased to have secured the rights to PDM’s Acuity software, which automates the day-to-day running of a DOOH media network. To support PDM and to pursue other opportunities in the region we are also announcing the opening of our Melbourne office.” 

For more details about the PDM/EnQii partnership, click on over to DigitalSignageToday.com and read the article in its entirety.