Signage Solutions
Digital Technology for Today’s Applications
July/August 2010
magazine
Your Visual Prescription, filled
By The Way Examining the state of the digital signage industry By Steve Gurley
Before inspecting the state of the digital
signage industry, it is vital to understand the architecture, operating models and business models that power the marketplace. In such a multi-faceted industry, the interplay between each can have a huge impact on every corner of the business.
Architectures and Components
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Engaging Content Bringing quality and affordable content to the party p14
Digital Signage Products & Solutions
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Operating Models A digital signage system may be operated on either a “hosted” or “premises” basis. The terms hosted and premises refer to where the two major components of a digital signage system (e.g., the content management and scheduling software) reside, how they are operated and how they are billed to the venue owner, if billed at all. Each of these is defined as follows: Hosted-based System (also known as a Softwareas-a-Service or SaaS system) A hosted system is a digital signage system that is administered and operated by a third party on a server that is remotely located from the venue in which the media players and screens are installed. In a hosted model, the venue owner is given access to the scheduling system, usually via a Web browser, in exchange for a monthly subscription fee. The remotely-hosted content management software then communicates content to the venue’s players/ screens via the internet. The key benefit of a hosted system is that it requires little up-front capital commitment by the venue owner, because major hardware and software components are not purchased. The downside is that
The State of the Digital Signage ge D ig it al S ig na Industry p38
Signage Essentials
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Public Spaces and Mobile Devices Great Customer Engagement p 7
The primary function of a digital signage system is to play multimedia content on one or more electronic screens installed in venues (e.g. retail stores and hotels) for the purpose of informing, educating, entertaining or persuading viewers. At its most elemental level, a digital signage system is four technologies working in concert to support the primary function. These four technologies are a content management system, a content-scheduling system, one or more media players and one or more displays. The content management system manages the collection and distribution of digital assets (including videos, graphics, pictures and text) to one or more displays on a visual communications network. The content management system is the heart of a digital signage system. Sophisticated content management systems manage the real-time collection, delivery and display of data, manage access to digital assets, provide user access administration, manage approvals, provide proof-of-play reporting, provide network utilization/management controls and support data visualization. The scheduling system typically directs how the content management system handles the collection and distribution of digital content. In other words, the scheduling system tells the
between the content management system and the screen. It is the media player’s responsibility to collect the digital assets from the content management system and then pass them on to the screen in an appropriate format for the screen. A typical digital signage installation is concerned with deploying screens that have high mean times between failures, are equipped with anti-burn-in technologies, possess high energy efficiency ratings, support standard display protocols, and feature commercial-grade cases and warranties.
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Industr y News
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Publisher’s Perspective SignageSolutions
Signing In Thank you for taking the time to read our premier issue of Signage Solutions. Our goal in launching this exciting new magazine is to help educate our readers about new products and technologies in the digital signage industry. With every issue, you will find new products and solutions about specific applications and technology in the industry. As a consumer, it’s amazing to see all the places digital signage is being utilized. From restaurants, grocery stores and golf courses to yogurt shops, airports and even restrooms—digital signage is popping up everywhere. Most of us have been to Walmart recently and seen their large number of screens showcasing products and sales throughout the store. In the Walmart I frequent, they even have mini displays on each end cap to promote product on that specific aisle. Just this week, I noticed my local Pei Wei restaurant had converted all their printed menus to digital menu boards. Not only was the menu on a beautiful display, the restaurant was also showcasing one of its signature dishes being cooked on a Flash video. Of course, the food looked great, and I bought what they were promoting. What does that say? I think it means that place-based media works—at least on me. The retail and food industries are obviously not the only markets utilizing digital signage. Living in the Dallas area, I fly in and out of Dallas-Forth Worth International Airport. If you’ve been there within the last few years, you know that every display in the newer terminals is provided by Samsung. The airport is a great example of the possibilities of how and where users can implement cutting-edge digital signage: as gate signs, televisions, departure and arrival boards, and more. I could ramble on for pages about all the installations I’ve seen and what the possibilities are, but I think I’ll leave that to our writers. Please enjoy the articles in our first issue of Signage Solutions. I also encourage you to check out our new website, www.signagesolutionsmag.com, and sign up for a regular subscription. (Don’t worry; it’s free to qualified subscribers.) I look forward to supplying you with useful and interesting content that will help you, as a professional, improve your business and truly engage your audience.
Thanks,
Ben Skidmore Publisher E-mail me at ben@signagesolutionsmag.com Find us on Twitter at www.twitter.com/SignageSolMag
Digital Technology for Today’s Applications
magazine
July/August 2010
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Volume One
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Issue One
Publisher/Editorial Director Ben Skidmore (972)587-9064 ben@signagesolutionsmag.com Design/Production OFFTHELEASHDesign
Cynthia Pater Off The Leash Design 469-222-9168 otldesign@gmail.com Advertising
Partners Publishers’ Representatives (972)782-2490 info@partnerspr.com Web Site Colby Nate Visual Agility (888)284-8334 cnate@visualagility.com Home Office Partners Publishing 306 South Tennessee Street McKinney, TX 75069 (972)782-2490 phone (972)692-8138 fax
Signage Solutions Magazine is published bi- monthly by Partners Publishing. To subscribe to our print edition visit www.signagemag.com. Qualified subscribers receive Signage Solutions at no cost. Others may subscribe at the cost of $60 for six issues. Individuals copies sold for $15, per issue. POSTMASTER: Send address changes to Partners Publishing, 306 South Tennessee Street, McKinney, TX 75069. Printed in the United States of America
Author’s Guidelines: Signage Solutions will consider manuscripts that are not offered to other publications. Preferred length is 700-900 words (case study’s) or 2,000-2,500 words (Features). Please submit manuscripts to Editorial Director at the mailing address above or send via email to: editor@signagesolutionsmag.com
July/August 2010
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Signage Solutions
magazine
Contents
Digital Technology for Today’s Applications
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Technology @ Work
A brief look at company/industry news within the digital signage industry.
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Vertical Views
Public Spaces Give Them What They Want. Companies are looking to engage with their audience more and what better way than through mobile devices. By Sanjay Manandhar
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Digital signage products and solutions, along with the technology which runs them, make the industry what it is today. Every issue of Signage Solutions Magazine will feature new products and solutions contributed by their respective companies.
34 Wireless Improving the ROI of Outdoor Digital Signage. Managing content through wireless networks has never been easier. By Matt Nelson
Signage Solutions & Products
Signage Essentials
Content is King. Knowing the right formula is the key to success. By Kim Sarubbi
Financial Going the Distance. Solving environmental challenges in digital signage installations is not as challenging as it may appear. By Heather Santos
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Digital Dialogue
SSM had an opportunity to connect with Oliver Ferrier, Chief Experience Officer of Vislogix, to talk with us about one of their interactive technologies, the Holo-iTouch.
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By The Way
Examining the state of the digital signage industry. Industry leader gives his comments on the digital signage industry and the road ahead. By Steve Gurley
www.signagesolutionsmagazine.com
July/August 2010
features
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Front Page
Bringing quality and affordable content to the party. An overview of all the new ways digital signage is being used and how quality, affordable content creation tools are changing the entire game. By Don Pierson Your Visual Prescription, is now filled Nationwide digital signage network reaches millions of pharmacy customers. By Megan Weadock
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Updates
Industry&News
Technology @ Work
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NEC Display accelerates digital signage growth by making VUKUNET Content Management Software free to ANY Network Operator Chicago, IL – NEC Display Solutions is taking a bold step to accelerate the growth and success of the digital signage industry by making its full VUKUNET digital signage software management platform available, free of charge starting today, to any network operator. The VUKUNET Content Management System is a robust Software as a Service (SaaS) solution that is fully hosted, managed and supported by NEC. Developed by NEC, the VUKUNET CMS meets or exceeds the capabilities of dozens of commercial SaaS digital signage solutions, but has none of the start-up or substantial monthly subscription fees that keep many networks from profitability. VUKUNET CMS brings many benefits to network operators, including: •
Fully free central hosting, storage, control and playback solutions • An easy widget-based drag and drop user interface, from a web browser • Broad multimedia and HD video capability • Dozens of pre-configured content and messaging templates • Free Reuters weather, sports, stock, news and entertainment content feeds • Tight and secure permission-based user controls • Seamless, built-in integration to VUKUNET’s opt-in ad serving solution • EMS, emergency management system Along with the free CMS solution, NEC is also offering content management, network management and content creation services to network owners as part of the overall VUKUNET Platform and portfolio of services. Network operators can find out more at www.vukunet.com.
www.signagesolutionsmagazine.com
Xpresenter Xe Desktop Extends the Reach of Digital Signage to Create Powerful Corporate Communications Tool MONTREAL — X2O Media, a full-service provider of software, network management, and content services for professional digital signage applications, today announced a desktop addition to its newest product line: the Xpresenter™ Xe Series of digital signage systems. Making its debut at InfoComm 2010, Xpresenter Xe Desktop extends the reach of communications beyond digital signs by allowing users to receive information such as messages, video, and alerts via a userfriendly player right on their desktop. “Xpresenter Xe is an ideal solution for the rapid deployment of professional-looking digital displays in a number of applications, such as information displays. With the addition of the desktop feature, it’s now also a powerful corporate communications tool,” stated David Wilkins, X2O Media’s President and CEO. “Conveying important information to employees can be a challenging and expensive task in any organization, but with Xpresenter Xe Desktop, messages and alerts can be sent directly to users’ computer screens, providing the right information to the right people at the right time. We are very excited to announce this new functionality at InfoComm 2010.” The Xpresenter Xe Series was designed to lower the total cost of ownership for digital signage solutions of any size. The series now offers three high-quality systems, allowing users to buy the version they need, without paying for extra functionality that’s not required. Xpresenter Xe versions include the Digital Poster Edition for still images, Video Poster Edition for stills and video, and Dynamic DS Edition for stills, video, and data-driven graphics, enabling users to choose the application they need now and upgrade as future needs arise. The addition of the desktop feature now extends the reach of communications beyond digital signs to desktops. www.x2omedia.com.
Technology @ Work Texas Digital and Odysii Announce Partnership to Increase Drive-Thru Sales through Targeted Suggestive Selling College Station, Texas − Texas Digital Systems Inc., a leading provider of visual communication solutions, and Odysii, the world leader in software solutions for targeted suggestive selling, have announced a partnership to enhance Texas Digital’s AccuVIEW order confirmation solution with Odysii’s suggestive selling solution. This combined drive-thru solution is designed to increase the average sales ticket per customer. Texas Digital and Odysii have a combined market reach of installations in over 40 countries including several leading quick service restaurants such as Arby’s, Burger King, Kentucky Fried Chicken, McDonald’s and Wendy’s. Texas Digital’s AccuVIEW Order Confirmation Board enhances drive-thru profits by improving order accuracy, increasing speed of service, and reducing theft and food loss. The integrated solution, incorporating Odyssi’s suggestive selling will deliver relevant product recommendations based on previous customer choices, business rules and time of day. This solution provides better results than digital signage with static loops by providing more targeted recommendations that have a higher acceptance rate, and increasing customer satisfaction through a better user experience. www.txdigital.com
VBrick Systems Bridges The Streaming Media And Digital Signage Worlds With A Fully Integrated Digital Signage Solution (BUSINESS WIRE) – IP video technology leader VBrick Systems announced the availability of the industry-first VBrick Digital Signage solution that combines video streaming and digital signage into one fully integrated solution. Now digital signage content can be streamed across a virtually unlimited range of IP networks and devices, significantly expanding its reach and application possibilities. Historically, organizations have deployed separate streaming and digital signage solutions with no ability to integrate the two technologies. VBrick Systems has ushered in a new era of advanced enterprise workflow with the integration and extension of these critical collaborative technologies. Through the centralized management and distribution of the streaming and digital signage content using VBrick’s Enterprise Media System (VEMS), combined with VBrick encoders and
Digital Technology for Today’s Applications
set top boxes, the cost of deploying digital signage is decreased by up to 75 percent. CEOs can now extend live broadcasts to all employees via personal computers, mobile devices and digital signs. Similarly, human resources professionals can more powerfully communicate new regulatory or employee benefits information using live or on-demand video that can be viewed anywhere in the organization. In a higher education environment, digital signs can replace bulletin boards and integrate live video of on-campus events. Moreover, television content—be it news, sports or weather—can be more easily displayed in common areas or cafeterias.
At Saddle Ranch Productions, we don’t just produce great content, we have over 25 years of experience, specializing in targeted digital signage and place based media. To learn how we can help you contact us at 310-746-5652.
www.vbrick.com
WebDT Content Manager Software Provides Efficient Management of Digital Signage Networks San Jose, California – DT Research™, Inc., an industry leader in the development of information appliances for vertical markets, today announced the release of WebDT Content Manager version 4.0, a key tool for managing a digital signage network.
July/August 2010
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Technology @ Work WebDT Content Manager (WCM) software provides inclusive tools to schedule content files and create layout designs for media displayed on digital signs. With WCM, a network manager can create ticker zones of any size anywhere within the screen as well as support for static text and real-time information through RSS feeds. Administrators can more efficiently edit playlists and create a “Combolist” to link or embed multiple playlists for quick scheduling of recurring content. Additionally, administrators can also remotely update firmware, software and turn appliances on or off. The newest WebDT Content Manager release, WCM 4.0, offers new features to improve the usability. A digital signage content manager can now assign specific access to chosen accounts for editing and loading playlists. A user can even be assigned the ability to edit media files in one zone on a screen with multiple zones of content. Basic screen layouts and scheduled content sequences can now be previewed on any computer in a local or remote location to verify a playlist before it is displayed on the digital signs. For users who work with Microsoft Active Directory, rather than creating new usernames and passwords for WCM, the data can be directly imported to WCM, including already assigned account roles and access privileges.
www.signage.dtri.com
Arby’s Franchisee Chooses WAND Digital Menu Board Solution Eden Prairie, Minnesota - WAND Corporation announced their development of a Digital Menu Board solution for the Arby’s community. Currently, the secondlargest Arby’s franchisee, Carisch, Inc., is testing the solution in one of their Wisconsin locations. WAND Digital Menu Boards have been developed to allow easy installation, one-click remote web updating, and the ability to interface with the Point Of Sale to ensure maximum price compliance. “We’re pleased that Carisch has chosen to test our solution by deploying a WAND Digital Restaurant,” said Greg Perrill, Chief Operating Officer of WAND Corporation. Perrill added, “We’ve been partners with the Arby’s community for nearly a decade
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and we look forward to doing even greater things as our relationship continues to build.” The newly remodeled location now features 42-inch LG Electronics commercial grade screens controlled by WAND technology and also utilizes WAND NextGen POS® software. Arby’s Digital Menu Board content is dynamically updated to coincide with promotions, specials, and local events. A multi-daypart strategy has been established to promote the right items during the best time of the day to drive up sales. Arby’s design projects the sophistication of a Fast Casual restaurant inside a leading QSR, displaying the quality selection one might expect to find in a pricier locale but taking less time to provide a customer her/his order. The Digital Menu Board design at Carisch, Inc.’s location lends itself well to imprinting the Arby’s brand on the store, while also lending itself to rapid deployment and assistance. Furthermore, Carisch, Inc.’s decision to install Digital Menu Boards are its attention-grabbing appeal, which takes hold of a patron’s interest and leads her/ him through the menu with color, graphics and motion. The creative team at WAND divides menu categories with color, line and graphics so that customers can easily identify menu information to help them make a decision. www.wandcorp.com
WAND Corporation’s three-panel outdoor Digital Menu Board. Photo courtesy of WAND corporation.
www.signagesolutionsmagazine.com
Photo courtesy of DT Research
Digital Signage Federation Creates New Standards Committee The Digital Signage Federation was created to be a resource and a voice for a rapidly growing and evolving industry. Education and advocacy have been hallmarks of all successful industry associations, and DSF has put special focus on those areas in its first year, as we try to meet the needs of a diverse membership base. One other area of importance and opportunity for our industry is the notion of standards. Much has been written about good work that has been done by a number of different groups, as well as the need to coalesce around generally accepted standards across many facets of the business. Among those are: • Content • Measurement • Integration and messaging • Reporting • Semantics • Privacy Recognizing the need for standards, and the opportunity to act both as a strong voice in unifying and enhancing existing standards and as a leader in breaking new ground, the DSF has organized a permanent committee on standards. The DSF Standards Committee will endeavor to endorse, establish and advocate standards that will pave a road toward a stronger and more efficient industry. The committee is seeking active members to take part in its work. Please contact DSF President John Johnson if you are interested in playing a role in this important industry initiative. www.digitalsignagefederation.org. SSM
Vertical View
Public Spaces
Give Them What They Want Customers’ craving for interactivity seems to be a sign of the times By Sanjay Manandhar
T
hese days, a certain device in everyone’s pocket or purse is used more actively than any other electronic product. Studies show personal handset devices, whether smartphones or simple phones, are being used more for data—such as texting, browsing and instant messaging—than for voice calls. Yet, it is surprising that only a handful of signage companies have integrated mobile interactivity and social media into their solution. More user-generated content—such as picture-to-screen, text-to-screen, Twitter, Facebook and YouTube integrated directly into digital signage solutions—is the craze, and it is here to stay. Clearly, users crave interactivity—and it’s about time the solutions providers listen. A good example of user-generated content (UGC) in a public display is the Pic2Screen application powering the Kodak LED board in New York City’s Times Square. User-generated images can be e-mailed to kodak@aerva.com. The system acknowledges receipt and sends all submissions for approval or rejection. All approved submissions generate a code that the user can use to pull up his or her image onto the Kodak LED board. The ongoing campaign, which started in December 2009, is part of Kodak’s promotion at its “Smile Gallery,” and users are more than happy to partake. There have already been three marriage proposals and a significant number of images sent in from many countries. People visiting New York make the Pic2Screen upload at Times Square a destination experience.
Ensuring Quality It is hard to compete with the quantity, dynamism and creativity of UGC, and digital signage benefits from this user interactivity. However, some venue and sponsors have always been a bit wary about UGC, especially over concerns about managing unwanted content. However,
Photo courtesy of Aerva
Digital Technology for Today’s Applications
Photo courtesy of Aerva
there are ways to tame the animal’s unwanted aspects. The Web-based moderation interface for the Pic2Screen application allows for rejection of objectionable content and blurred or otherwise inappropriate pictures, thus providing protection to the sponsor and a pleasant experience to the viewers.
Social Media While displaying texts and tweets on the browser have become popular, these streams have not been as readily adopted by digital signage. Yet organizers, venues and companies are progressively adding user interactivity to get relevant and live information. Users truly love to add their input and view others’ contributions in real time. Similarly, users are spending more time on Facebook, YouTube and other social media sites. Some UGC on digital screens can come directly from these social media sites, allowing users to participate more widely, while allowing advertisers to show dynamic and creative content. Increasingly, promotions that have elements of game mechanics, such as winning points or achieving a goal, not only engage the users but also provide a different kind of content that drives higher participation than static videos would. User interactivity on digital screens—including browser, indoor, outdoor or projection—is a growing trend, thanks to the proliferation of mobile handsets and social media ecosystem. It is time for digital out-of-home network to take advantage of this phenomenon that is here to stay. SSM
Sanjay Manandhar is the founder of Aerva Inc.
July/August 2010
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Vertical View
Financial
Going the Distance Solving environmental challenges in digital signage installations By Heather Santos
P
owerhouse clients like the Bank of Montreal, Scotiabank, The Beer Store and Shark Club Restaurants demand an end-to-end solution for their digital signage distribution and content management. Seemingly workaday obstacles, such as the distance between a business’ media player unit and LCD and the environment in which they are kept, are often more challenging than they seem. Novramedia Inc., a digital signage solutions provider, is familiar with the problems associated with environmental challenges. The company offers its clients a hybrid infrastructure solution, which enables them to provide their digital signage and kiosk offering to global clients with multiple locations anywhere in the world. Through the use of their technology designed and specifically customized for their client’s needs, they can deliver content anywhere in the world, in all customer locations, simultaneously. In true end-to-end fashion, Novramedia offers a vertically integrated solution that includes the design and manufacturing of hardware and software, installation, customer training, content design, content scheduling and ongoing management of networks from their headquarters in Toronto, Canada. However, the company needed a reliable solution to two challenges: the distance between the media player unit and the display unit, and the environment in which they were kept. In many facilities, Novramedia required video/audio extender devices to reach vast distances. Simply using VGA cables to deliver the content would have been impossible. Initially the company planned to use a direct A/V hook ups without extenders; however,
The Beer Store
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Bank of Montreal
this method was never officially rolled out. Instead, they moved toward extenders (CAT-5 to VGA) as soon as possible.
A Long-Range Solution For help, Novramedia turned to Adder, a manufacturer of an advanced range of KVM switches, extenders and IP solutions that enable the IT, retail and AV industries to control their mission critical systems and control high-quality audio and video. The company’s Digital Signage Extenders addressed not only the distance limitations between the media player and LCD, but also many environmental concerns. Novramedia deployed AdderLink AV200 and AV204 receiver and transmitter units, which transport VGA over a standard CATx cable. The receivers and transmitters were ready to use right out of the box, without any customization or additional hardware. Because the extenders have a robust metal enclosure, both the receivers and transmitters can be applied to a vast array of environments, from hightemperature server rooms to the backrooms of cooled Beer Stores. An extender can be secretly mounted behind each LCD, or, for larger installations, the extender can be secured in a server room and rack mounted into a 3U chassis. One of the main requirements of customers like The Beer Store, Scotiabank and the Bank of Montreal was the ability to remotely turn on/off the LCDs based on the client’s needs. The AV200 Series features display management via RS-232. The Display Management Software included with the extenders even gives users control and interaction with display devices over the integrated RS-232 ports. This allows for bidirectional and automated communication with individual screens, groups of screens or all screens at the same time.
Vertical View Financial
The Perfect Fit Video/audio extenders are crucial to Novramedia’s business as they deal with clients that house media players far away from the display units in server rooms and back-of-house areas, for example. They needed a solution that would utilize the cost effectiveness and bandwidth of CAT-5e, which made the AdderLink AV200 Series an ideal fit. “The quality of the product is excellent; it is reliable and does exactly what it said it would do,” said Paul Engel, systems administrator at Novramedia. “We found the installation of the devices for the most part were very straightforward for their installers and contractors. The benefits of using this product are that we can extend a video/audio signal much longer than with a regular VGA cable.” The decision to go with the AV200 Series was based on the quality of the product, the functionality (especially the RS-232 connection), simple design and the ease of tweaking and installation of the devices. Fine
Scotiabank
tuning on site can easily be done by anyone. The extenders are used in conjunction with media players and video walls for the ultimate digital signage experience in each of the discerning clients’ applications. SSM Heather Santos is the Marketing Manager for Adder.
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Digital Technology for Today’s Applications
July/August 2010
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Vertical View
Wireless
Improving the ROI of outdoor digital signage Managing content through wireless networks
To Wire or Not to Wire When new signage is installed, the advertiser must decide whether to run a direct line of cabling or a wireless connection. If the source is within 40 miles of the digital billboard, this local content can be wirelessly deployed through a “closed” industrial wireless network instead of an expensive cellular type network. Typical 3G or cellular data services can range from $30 to $50 per sign each month. Therefore, a company that manages a digital signage network of 100 signs could save more than $60,000 per year by using a closed wireless network.
Case in Point Daktronics is the world’s largest supplier of large-format LED display systems, including digital billboards, large-screen video displays and control systems for sports and commercial venues. The company’s digital LED billboard division installed its first digital billboard in 2001 and quickly became the top digital billboard manufacturer. Daktronics has installed more than 950 digital billboards nationwide in more than 150 cities—many of which require longrange industrial wireless technology. For Daktronics, using AvaLAN Wireless technology in their installations has led to reliable and robust solutions in a variety of environments. AvaLAN has helped to improve the ROI of digital signage systems for Daktronics and other companies by reducing or eliminating recurring wireless service costs and expensive installation costs. SSM Photo courtesy of Daktronics
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utdoor digital signage has the proven ability to generate more revenue than traditional advertising methods—by using the same physical space in much more effective ways. Despite tough economic times, the digital signage industry is continuing to grow at an accelerated pace. One area of significant growth is outdoor digital signage, most of which uses local advertising content. This content is usually provided by a local source and requires some form of connection to communicate with the signage.
By Matt Nelson
Matt Nelson is the CEO of AvaLAN Wireless Systems Inc. Photo courtesy of Optec
Added Benefits In addition to saving on recurring wireless service charges, a closed wireless solution saves on installation costs. Many outdoor digital signage systems are located across a paved parking lot or other expanse. Using wireless technology to achieve connectivity can eliminate expensive cable installation costs, which also can save thousands of dollars. Over time, decreasing costs and improving digital signage systems will enable continued growth in the industry. Digital signage network providers and advertisers are always looking for a way to reduce costs, and industrial wireless connectivity has already proven its value within the industry.
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Photo courtesy of Daktronics
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Media Players | LCD Screens | Projectors | Adapters | Converters/Scalers | Extenders | Splitters | Switches | Cables
Digital Dialogue
Q & A With Oliver Ferrier
Interactive Technology and the Power to Engage It doesn’t matter what line of business you’re in, being able to engage with your audience is crucial. Today more than ever, companies are looking for more ways to interact with their customers. We know that, and you know that, so we found a product that’s designed to interact with an audience. SSM had an opportunity to connect with Oliver Ferrier, chief experience officer of Vislogix, to talk with us about one of their interactive technologies, the Holo-iTouch.
Q: A:
With customer engagement being a top priority in the digital signage industry, how does the interactive Holo-iTouch achieve this?
Holo-iTouch is a very unique product in that it is the world’s first all-in-one mobile transparent interactive touchscreen. What that means is it comes complete with everything you need for plug-and-play operation, and it can easily be used for mobile presentations, tradeshow booths, event enhancement and more. One of the really neat features of the system is that users can dynamically manipulate and interact with any mouse-driven content such as websites, PowerPoint and flash merely by using their finger on a holographic screen.
Q:
Can you explain how the interactive technology works?
A:
Holo-iTouch uses an embedded transparent touch foil that senses a person’s touch through up to 1-inch thick glass. Our transparent holographic rear projection screen displays the projected content running from the PC. Picture a 50-inch holographic mousepad where the image is displayed and ready to be interacted with.
Q: A:
Holo-iTouch ships with a 3000 Lumen DLP projector standard but, depending on the type of environment, it can be upgraded to a 4500 lumen projector as well. Additionally, the HoloiTouch comes with an additional opaque inlay projection screen that easily can be added to the holographic screen to combat ambient light. This ensures that your presentation will be a success regardless of what lighting challenges you may be facing.
Q: A:
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Do users need a specific projector? If not, what types of projectors work with the technology, and what are the minimum specs?
Is the interactive foil proprietary for the Vislogix technology, or can you use any foil? The interactive foil is not proprietary to Vislogix, but it is manufactured to spec for the Holo-iTouch. IR or optical tracking camera multi-touch bezel options are available for custom orders as well.
Digital Dialogue
Q: A:
How has the technology been deployed in the market, and for what types of use?
Holo-iTouch has been used in a variety of applications, ranging from event enhancements, such as the NFL Experience, to countless tradeshow booths around the country, since we offer rental services as well. Most notably, however, it has been used by a variety of companies as a demo/presentation tool due to its dynamic delivery of content, coupled with its ease of transport and setup.
Q: A:
It varies based on usage, but our average tradeshow rental testimonials report an increase in booth traffic upward of 200 percent. When you factor that increase into active participation with the ability to cleverly promote your brand, products or service features, it definitely helps to set yourself apart and leave a lasting, memorable impression on your audience. In our own experience at events and with specialty projects, the system has always drawn a crowd and generated a significant buzz. People are simply amazed at being able to intuitively touch a piece of glass while commanding and accessing content they are interested in with the use of one or two fingers.
Q:
Photos courtesy of Vislogix
What results or ROI are companies that utilize the technology experiencing?
What other areas of use do you see the technology being used for in the future?
A:
I believe that we are only in the beginning stages of transforming that old, mundane era of static and tiresome digital signage in the marketplace, which was primarily push/pull oriented with poorly quantifiable metrics. The future lies in captivating and engaging your audience while offering them the ability to forage for the content and information they want, when they want it. By integrating additional solutions such as our SMS-based content conveyance technology and audience measurement, we can now truly track and communicate directly with your
Digital Technology for Today’s Applications
audience from walls, floors, windows and a variety of other custom surfaces. I ultimately envision a world where all of these surfaces will become viable portals for interactive media and communication.
Q:
Will the “average� client be able to create content without the help a thirdy party? What formats are compatible?
A:
Yes, depending on the product. Our Holo-iTouch and EZ Touch Window, for example, will allow clients to run any website, flash, PowerPoint or other mousedriven application with effortless ease. Respondr will allow a variety of customizations and imported files as well, but it really depends on how dynamic and specific the end project needs to be. We further offer full interactive content creation services ranging from holographic content, way finders, interactive games and branded showpieces, to full scale building projection and 3-D mapping. SSM
Oliver Ferrier is the chief experience officer at Vislogix Inc. and MobileLink Media LLC.
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Photo courtesy of BlackBox
Bringing quality and affordable content to the party By Don Pierson
Digital Signage and the Era of Truly Engaging Content An overview of all the new ways digital signage is being used and how quality, affordable content creation tools are changing the entire game. Digital Signage is still a relatively young industry. And like all children, it’s growing like a weed. What was once a limited field has exploded in recent years to include just about every kind of public venue imaginable.
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Think of all the places you’ve seen digital signage recently. Electronic billboards are now commonplace. Sports venues bristle with digital signage, ranging from small flat panels situated throughout the concourse all the way up to the massive screens around or above the playing surface—Cowboy Stadium in Texas claims the largest high-definition screen in the world, at 160x72 feet. Flat screens delivering information and entertainment have been ubiquitous at airports for quite some time. Look at restaurants. Digital menu boards at fast food venues began appearing as early as 2005. And still other restaurants, such as Starbucks and Arby’s are now introducing them. Flat panels at Denny’s restaurants in the waiting areas and in the dining rooms show standard entertainment fare interspersed with advertisements.
Going Campus
Universities and businesses use internal digital signage networks to educate and inform. Self-service gas stations and convenience stores are beginning to deliver content to people at the pump with nothing else
Creating Content
to watch but gasoline being delivered to the car. The list goes on and on, even to unexpected places like the backs of pedi-cabs. What’s driving the explosion, of course, is the heady promise of digital signage: the ability to attract the attention of the audience, engage them in that first critical fraction of a second, deliver relevant, meaningful and understandable information, and perhaps persuade and motivate them. The ultimate goal is to do all that at a much lower overall cost over time than other alternatives.
Options for creating the content have been at two extremes when viewed both in terms of the output produced and the expertise— and expense—required. At the low end: Microsoft PowerPoint, usable by just about anyone, but limited in terms of what can be created. At the high end: professional tools like Adobe’s® Photoshop® (for static graphics), After Effects® for motion graphics, and Flash® for interactive content. These Photo courtesy of DRM Productions tools are capable of producing stunning and highly polished content, but are also very complex, have a steep learning curve, and require a high degree of product-specific expertise. Consequently it’s a costly and timeconsuming proposition to create content with them. And that’s just to Keeping a Promise create the original content. To keep it fresh and up-to-date is equally But delivering on the promise means, above all, that the content that costly and time-consuming. Many organizations simply can’t afford it. the viewer sees is top-flight. Certainly all aspects of the digital signage And that’s been the content dilemma up to now. Do you live with solution play important roles. But in the end it doesn’t matter how robust inferior content that’s affordable and can be kept up to date, or do the infrastructure is, how capable the scheduling software is, if the you invest heavily in top quality content, and live with long update content that’s delivered is noise. That’s why, “Content is King” is true. and refresh cycles? Neither is acceptable and neither delivers on the So how has digital signage content, as well as the ability to create ultimate promise of digital signage. That’s why many companies, after and deliver it, changed as the industry has grown? making huge investments in digital signage systems and infrastructure, One of the changes is the nature of suppliers. Until recently, were appalled when they found out what it costs to keep their systems the industry was dominated by a handful of suppliers who supplied fed with suitable content. everything needed for digital signage—soup to nuts. These early But new content creation software is changing the digital signage entrants, visionaries really, who saw the promise of digital signage game because, for the first time, you don’t have to choose between before everyone else, provided complete turn-key solutions. affordability, top quality and updatability. You don’t have to engage The hardware, software, networking and often creative high-priced professionals because it’s simple enough to use that anyone development were all tied into one. It was critical that they do so, can use it. You can have content that’s indistinguishable from content because one sure way to kill a new industry is to complicate it while that’s generated with Flash because it is Flash, even though Flash people still are grasping what it’s all about. itself—the Flash creation tool—isn’t used to create it. Simplicity, however, comes at a cost, Keeping content fresh and up-to-date and in this case the cost was in limited options. is easy because the creation tool is easy to That was true even when it came to content and use. You don’t have to be a programmer or its development. Some digital signage providers professional developer to make simple changes, required that they alone create the content—and like swapping out graphics or video files, or charged hefty fees to their captive clients. even changing text. No more submitting a Others offered home-grown content request, waiting a week and then overpaying to creation tools to their clients, but these had all do something like change a price. the hallmarks of the after-thoughts they were. In the old paradigm simple equaled static, That shouldn’t be a surprise, of course. The boring, underpowered and largely ineffective. companies who created and built the digital That’s no longer the case. Today simple can signage industry prospered because they were include the ability to draw from an unlimited terrific technology companies, not because number of professionally designed, fully animated they understood how to develop software for templates, even highly-interactive templates for creating the type of highly-evolved content that organizations deploying touch-screen systems. the consumer has come to expect and will pay Now consider that these templates attention to. can be modified in any way and then saved That’s why the content creation software as new templates. Imagine the possibilities for offered by many of these companies was little organizations of all kinds. Those that are just more than a set of templates into which the getting started and without access to skilled real content—created with some other content resources can be deploying their own polished development tool entirely—was plugged. content in no time by sticking close to the Photo courtesy of BlackBox
Digital Technology for Today’s Applications
July/August 2010
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templates until they develop their own creative skills. Yet organizations that do have access to skilled resources gain as well, because they can focus on creating new proprietary templates that communicate in new ways while enforcing important standards like branding guidelines.
What is the Cost?
In the old paradigm powerful equaled expensive. But content creation software like Flypaper changes that forever. You no longer have to be a Flash—or after effects—animation expert to create high quality motion graphics content. But more importantly, you can use drag-and-drop components to enable your content in new and exciting ways. End users can add an RSS feed that is similar to CNN headlines. It is also easy to drop a component on the page and pick the feed, plus add local weather information. Drop in a component. Components like these are making it possible to use digital signage in ways never really before feasible. For example, imagine arriving at the reception desk of another company with which you’re having an important meeting and being greeted with an attractive welcome message on their digital sign that includes your picture, up-tominute news about your company, and its up-to-the second stock price from the exchange. That could easily change your perception of that company. Now consider that this could be done by the receptionist simply dropping your photo in a computer folder and updating a text document or Excel file. Another example: grocery stores work on the thinnest of margins. A store manager sees that the inventory of milk approaching its sell-by date is dangerously high. In seconds, she is able to update the store’s digital signage, which periodically displays the day’s bargains. Or even update a touch-screen display where shoppers can find out what’s being featured or on sale. All this can be done without ever touching the content file that is playing on-screen at all. Small examples perhaps, but this kind of empowerment will change the way we think about how we use digital signage to communicate, inform, market and sell. These are examples of what’s feasible now, but let’s also consider where digital signage is going. The technology is already available to detect who is actually looking at a sign, determine which content seems to interest them by where their eyes are focused, and gauge their level of interest by the time spent. Characteristics like gender and estimated age can be detected. The implications are far-reaching. Imagine digital signs on the end-caps in grocery stores that dynamically update the content being presented based on the characteristics of the people passing by, and further refine it when someone is paying attention and appears to be particularly interested. Both shoppers and the store benefit: shoppers by seeing information that’s more likely to be of interest to them, and stores through increased sales. Soon shoppers will be able to opt in with their loyalty cards, such as frequent shopper or ‘VIP’ cards, and have them RF enabled so that signage is aware of the shopping preferences of anyone viewing the sign and deliver content that might be of interest, just as supermarket check-out stations now print coupons selected based upon one’s shopping habits. All of these scenarios depend on one thing: the availability of a vastly increased amount of content, which must be high quality and up
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Photo courtesy of DT Research
to date to be of any use at all. For large-scale deployments, content creation software is enabling important changes in the way people work together to craft the message, helping them get it right far quicker, for less cost. Most digital signage content is created collaboratively, and the number of people involved can be quite large.
Good Communication
The opportunity for misunderstandings and errors increases exponentially as the size of the group increases. But collaboration features can enable people to mark-up and annotate content, request changes, ask questions and give feedback. And all this can be done the way people really work. That is, independently on their own schedule or in groups, from anywhere in the world, at any time of the day, which means higher quality, much faster and far less expensive content. What this means is that times in the digital signage industry are rapidly changing. Marshall McLuhan famously said that “the medium is the message.” In the broad sense that McLuhan meant it that continues to be true. But looked at in a different way it provides a useful way to think about the evolution of the digital signage industry. When it was emerging, the medium was the message: digital signage was a novelty and gained audience attention and interest for that simple fact. We could engage our audience and communicate somewhat effectively simply because people hadn’t seen it before, especially when gorgeous flat panel displays and digital TV were uncommon in the home. But now these things are commonplace. So, in digital signage, the medium is no longer the message. To deliver on the promise— attracting the attention of the audience, engaging them in that first critical fraction of a second, delivering relevant, meaningful and understandable information, persuading and motivating them, and doing it all at a lower overall cost—the focus now must be on the content. Fortunately, solutions like Flypaper are making it possible for people of all skill levels and organizations of all types to focus on the content and deliver on the promise. SSM
Don Pierson is the founder and president at Flypaper.
Your Visual Prescription,
filled
Nationwide digital signage network reaches millions of pharmacy customers By Megan Weadock
T
he evolution of information is barreling ahead at a seemingly faster rate each day. Consumers are bombarded with advertisements, news reports, research findings and health
warnings now more than ever. That is why, today, retailers, manufacturers and advertisers must cut through the din and truly be heard.
The highly competitive consumer market is precisely the reason
that the digital signage trend is experiencing such a dramatic uptick. Highly visual, dynamic, up-to-the-minute and sometimes even interactive, digital displays have the ability to capture people’s attention in a way that no other media can. From retail stores and megalithic shopping malls to passenger planes and transportation departments, a broad range of industries are finding a need for digital signage. And the possibilities are amazing.
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“The pharmacies … really love the program for several reasons. These independents have a smaller front-end typically. They usually have a small waiting area, and the dwell time averages 18 minutes for a person to wait for a prescription. It makes the perceived wait time seem like less to the patient, and it gives their store a more modern look and feel.” – Ian Stone of Respario Images courtesy of Cardinal Health © 2010
Digital Technology for Today’s Applications
July/August 2010
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Reaching Out
Consumers—and even end users—may not immediately link health care and digital signage. But the media displays are seeing success in pharmacies across the country, thanks to a digital signage network created by Cardinal Health, a health care services company that provides pharmaceuticals and medical products to 60,000 U.S. pharmacies, hospitals, surgery centers and physician offices. Dubbed the Pharmacy Health Network, the project is bringing high-tech digital displays into pharmacies across the country, creating unprecedented opportunities for advertisers and pharmacy owners, while informing and entertaining customers. So far, the network includes about 630 pharmacies, with monthly viewership nearing 4.7 million customers. “We wanted to try and build the network and use Cardinal’s status as a health care company to leverage our advertisers and offer something to our pharmacies,” said Lauren Fields, who develops marketing programs to help Cardinal Health’s pharmaceutical suppliers promote their products through retail pharmacies. “Our goal as a major part of the health care continuum is to be able to offer things for patients and keep educating them—and also to keep our pharmacies in business and modern. We want to make sure that they have cutting-edge technology to keep up with change.” Cardinal Health’s digital signage network includes mostly smaller, independent retail pharmacies, though several regional chains, including Medicine Shoppe and Discount Drug Mart, also take part. For the pharmacy owners and employees, the program provides some much-needed benefits, without any upfront or monthly costs.
A Winning Partnership
At each participating pharmacy location, Cardinal Health’s integrator for the Pharmacy Health Network, Dallas-based Respario, installs stateof-the-art media technology in the waiting area. Ian Stone, president and chief experience officer at Respario, said the pharmacies receive a 32-inch commercial-grade LCD screen from LG, a Real Digital Media NEOCAST media player, a focused speaker system, and all the accompanying wires and hardware. Cardinal Health also provides a brochure rack with supplemental health and advertising materials. “The pharmacies … really love the program for several reasons,” Fields said. “These independents have a smaller front-end typically. They usually have a small waiting area, and the dwell time averages 18 minutes for a person to wait for a prescription. It makes the perceived wait time seem like less to the patient, and it gives their store a more modern look and feel.” The network content includes informative videos on health care, entertainment segments and healthy living tips. Stone said Respario draws much of the material from NBC Digital Health, the Food and
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Drug Administration, the Centers for Disease Control and Partnership for a Drug-free America. The content is changed on a weekly basis and can be catered to various annual events. For example, the videos in February focus on American Heart Month. The Pharmacy Health Network also has the power to drive over-thecounter and prescription sales in each location. In fact, several products promoted on the network have experienced a 15 to 37 percent sales increase within the specific stores where they’re promoted, Fields said. Although the network’s health care content is standardized across the country, Stone said the advertising is increasingly regionalized or even focused on specific store locations. The fact that each ad can be so precisely focused to its audience—instead of the network at large— has been an attractive feature for advertisers.
Going Digital
Cardinal Health and Respario began collaborating on the Pharmacy Health Network three years ago, and the first system was installed in June 2009. For each installation, Cardinal Health takes care of the entire infrastructure, as well as upfront and ongoing costs, and even provides quarterly payouts for the qualified brochure rack. Each participating pharmacy only needs to have a nearby electrical outlet and a shared high-speed Internet connection. Stone said Respario aims to provide a complete, end-to-end solution in every way. From the company’s distribution center in Dallas, Respario ships each pharmacy a kit with all the required equipment, customized mounting brackets, and information and FAQs for the staff. Respario uses a “store and forward” approach, pushing packets of video and advertising content to the network pharmacies each Sun-
day. New weather updates and RSS feed information is sent daily; however, the data transfers take up very little of the pharmacies’ bandwidth, Stone said. The technology is standardized across the entire network, which Stone said has helped ensure high quality and simplicity for its members. “We’re able to manage the network down to the node, and we’re not dealing with a two- or three-headed network as far as technology goes,” he said. “It also helps our network operations folks become experts in one system versus many systems.” Each pharmacy includes a Real Digital Media NEOCAST K2, a
complete remote control of our locations.” American Technology Hyper-sonic Sound provides the directional audio system, which is an important factor for pharmacy staff. The technology ensures that the digital displays’ audio is focused toward the waiting area, both so customers can easily hear it and employees are not disturbed. “It was very important to us to be very conscious to how we’re going to impact the pharmacy and its staff,” Stone said. “There’s consulting that goes on with patients and pharmacists, and technicians do very finite work on a daily basis. The audio would have otherwise bled throughout the back of house, so we standardized on the directional audio.” In fact, certain states require directional audio to ensure employee comfort. Stone said Cardinal Health and Respario are very cognizant of the rules and regulations from the pharmacy boards in all 50 states in order to make sure they have the right technology in place.
Added Value
With the Pharmacy Health Network, Cardinal Health has created a type of symbiotic relationship with its member pharmacies, as well as its advertisers and distributors. And a cutting-edge digital signage network like this can only help independent retail pharmacies, which face ever-increasing competition from national chains
“Independent pharmacies, many people say, are kind of a dying breed . . . However, they actually make up a very high percentage of prescriptions filled in the United States. They’re still the bread and butter of the pharmacy world.” fully networked digital signage media player that receives the content from Respario and displays it on the LG screen. Stone said the NEOCAST platform was chosen to power the network due to its ability to support network growth at minimal operational costs, as well as its flexible and scalable architecture. “When we began the process of comparing media platforms, NEOCAST rose to the top of the list very quickly,” he said. ”We knew that we would require not only a scalable technology, but also a platform that would allow our team to easily install and manage across a footprint that is large and could grow rapidly. The Real Digital Media team has been very flexible in providing several custom elements to their software to enhance the media experience in the pharmacies.” As for the display itself, Stone said LG was chosen after his team reviewed many of the major display manufacturer’s equipment during the pre-launch of Pharmacy Health Network. “The five items that we assessed during the process were technology features, reliability, warranty, customer support and price,” he said. “We needed a product that would have longevity in the field and be very reliable against our aggressive roll-out schedule and longterm growth plan. There are many very good choices in the display marketplace, but the LG Commercial displays quickly rose to the top for us, especially in the area of value. LG’s displays have the clarity, feature set and seamless integration with our various mounting solution and technology requirements, such as RS-232 serial connectivity, for
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like CVS and Walgreens. “Independent pharmacies, many people say, are kind of a dying breed,” Stone said. “However, they actually make up a very high percentage of prescriptions filled in the United States. They’re still the bread and butter of the pharmacy world.” Cardinal Health and Respario have made sure that the pharmacies benefit from the network, without having to deal with disruptions or confusing technological systems. Cardinal Health only requires a three-year commitment from participating pharmacies. During that time, they must keep the screens and accompanying technology in the store, make sure they are unobstructed and stock the brochure rack—and nothing more. In fact, Respario even remotely controls the power for each digital display; pharmacy employees do not even have to remember to turn it on and off. Besides potential increases in sales, another bonus for the stores involves making use of the network’s “ticker” program. Each display features a running ticker, on the bottom of the screen, which features content that can be chosen by the pharmacy’s employees or owners. For example, Stone said many locations make use of the ticker to inform customers of upcoming flu shot clinics, sales or holiday store hours. “The majority of our pharmacies are utilizing it very effectively,” he said. “We made it very easy for them. Instead of training hundreds of people across the country, we came up with a very simple website where they basically type in their pharmacy name and their messages. It all comes back to our center in Dallas, and then we schedule that onto their screen.” Tom Nameth is the director of pharmacy operations for Discount Drug Mart, an Ohio-based chain that includes about 70 pharmacies. The company became a part of the Pharmacy Health Network a few months ago, and Nameth said it’s been a win-win scenario for both the business and its customers. “It worked very well for what our needs were,” he said. “At the time this was rolled out, we had absolutely nothing in our waiting areas for our patients to help pass the time. This helps them get caught up in it. While they’re watching it, they’re gaining information that’s timely and health-related that benefits our customers. “The other side of that coin is that we’re not paying for the service. It’s something that can be put into the stores at no cost for the pharmacy, and it can be a revenue generator. It was a win-win for us.” Although it’s too soon to see any quantifiable results, Nameth said the network is already making an impact for customers. The pharmacy employees have found the system easy to use, especially with a designated contact from Cardinal Health only a phone call away. And though Discount Drug Mart does not use the ticker program yet, Nameth said they’re considering it for the future. On the other side of the program, Cardinal Health is enabling its pharmaceutical distribution partners to reach their audiences like never before. Many of Cardinal Health’s distributors and manufacturers, as well as some outside companies, have opted to participate in the network’s creative advertising opportunities. Both Respario and Cardinal Health, as well as a few third-party companies, help sell ad space. “For us, this service is not so much about making money on a service for Cardinal; it’s more about offering a value-added service to our customers and our suppliers,” Fields said.
A Growing Trend
Although some pharmacy owners and employees were a little skeptical
Digital Technology for Today’s Applications
of the program at first, Stone said the proof lies in the more than 600 other successful network member locations. Many have seen an uplift in sales, and customers enjoy the lower perceived wait time. Meanwhile, the ease of use for pharmacy staff keeps things simple. Fields said she anticipates the full roll-out of the program to include around 3,000 pharmacies nationwide. Although the network may not be a good fit for every pharmacy model, she said, it has done well in the independent and regional chain locations. Both Cardinal Health and Respario are always looking for ways to grow and enrich the Pharmacy Health Network. In the future, for example, each pharmacy may be able to customize more areas of the display, in addition to the ticker. “We’ve had some really great successes in building the network,” Stone said. “And we’re constantly looking at new ways of allowing the pharmacy to get more value and benefit from the screen.” As the network continues to grow, the benefits for advertisers will only increase as well. The network has truly created a mutually beneficial relationship between manufacturers and distributors, pharmacies and customers. These unprecedented capabilities are exactly what makes this type of digital network the future of signage. SSM Megan Weadock is a freelance writer and editor based in Dallas.
July/August 2010
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Signage Solutions
Products Signage Solutions & Products
Digital signage products and solutions for today’s applications
Digital signage products and solutions, along with the technology which operates them, make the industry what it is today. Every issue of Signage Solutions Magazine will feature new products and solutions contributed by their respective companies. Please take time to review the products and see the full descriptions on our web site at www.signagesolutionsmag.com
HD Media Decoder The NLSS HD Media Decoder is the first completely open, full HD decoder on the market. It can display up to four simultaneous streams of HD 1080p video content to any LCD, LED or Plasma display. It supports 1x1, 1x2 or 2x2 layouts and features 7.1 surround sound capabilities. Custom view sequences cycle through views at a given speed or users can quickly access desired views with the optional remote control. The NLSS HD Media Decoder is IP-based so display content can be modified from a central location. In addition it is sold with an open API for advanced customization. www.nlss.com Digital Canvas
Mirror Image Digital Network Engaging & Innovative Advertising Technology that Delivers Measurable Results. LuxuryTec’s Mirror Image displays a digital brand advertisement until a consumer engages the sensor and it instantly becomes a fully functioning mirror with the brand message continuing to play in the upper right quartile. When the consumer steps away, the brand message reverts to the full screen advertisement again – making it a perfect way to reach people in airports, arenas, stadiums and other high traffic venues. Mirror Image’s robust sensor measures every consumer interaction, providing clients with invaluable data delivered through an automated client management system. Mirror Image engages consumers by displaying relevant gender specific content guaranteed to reach the specified demographic. www.luxurytec.com
One of the year’s most exciting new products in digital signage is Christie MicroTiles. This revolutionary new digital canvas gives you the power to display your messages just the way you want. Uniting spectacular colors, superior image quality and modular flexibility like no other visual solution, Christie MicroTiles are designed specifically for maximum image quality in highambient light environments. Leveraging the strengths of both DLP® technology and LED technology, Christie MicroTiles offer substantially brighter images and a much wider color palette than conventional LCD and plasma displays. With no practical limit to the number of tiles in a display, Christie MicroTiles produce a virtually seamless canvas with an unlimited number of super-fine pixels. These lightweight modules lock together in seconds to form any size or shape digital display. For full product information, product specifications and access to downloads visit www.microtiles.com.
Dual-Lamp Projector With the new dual-lamp 8000 Series, Mitsubishi has gone back to the drawing board and created installation projectors designed for unique applications and demanding environments. The first series of dual-lamp projectors in our product line-up is capable of continuous operations with only one hour of rest time per lamp per week. In addition, the Mitsubishi 8000 series can be combined to cover display areas of various sizes, shapes and form through its geometric adjustments and edge blending capabilities. And maintenance couldn’t be easier, as the automated, self-cleaning air filter keeps the projector clean, and is even reusable. www.mitsubishi-presentations.com
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Solutions &
Product Showcase Simplifying Digital Signage by Tatung
Key Features
• • • • • • • •
Expert In-House Team to Supply You with Everything You Need In Digital Signage All Projects are Managed by One Lead Team to Ensure Complete Satisfaction We Supply all the Latest Hardware & Software for Practical and Affordable Solutions Our Remote Management Software Allows You to Edit and Run Content on Multiple Screens from Anywhere in the World! Based on Your Preference we have both Server and Internet based Software Applications Software Support 24/7 On-Site Replacement Tatung Provides Certified Installers if Needed
Founded in 1972, Tatung Company of America, Inc. is a worldwide provider of technologically advanced products, customer solutions and manufacturing services. Based in Long Beach, California, Tatung Company of America distributes a variety of products and offers a full range of manufacturing services & solutions for the world’s leading PC & electronics original equipment manufacturers. Tatung Company of America serves the World with Quality People, Quality Products, Quality Services & Solutions.
www.tatungusa.com
Tatung Company of America, Inc.
Digital Technology for Today’s Applications
800.827.2850
Contact Information: 2850 E. El Presidio St. Long Beach, CA 90810 800.827.2850 www.tatungusa.com
A d v e r t ise m e N T
July/August 2010
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Signage Solutions
Products
Signage Solutions & Products Weatherproof Display First Truly Weatherproof Display – Fully-sealed Full 1080p Outdoor HDTV available in 42” and 47” Ciil Technologies has introduced the first entirely weatherproof flat panel display. The Ciil TV is a 100%, fully-sealed full 1080p outdoor HDTV available in 42” and 47”. Ciil’s manufacturing approach makes it impossible for moisture or microscopic dust to collect and get inside the TV, creating an outdoor screen that can operate without fail under harsh conditions and still look sharp in any setting. www.ciiltech.com
Easy Can Still Be Dynamic The Retriever digital signage gives the end user an advertising agency in a box. Providing “the easiest” solution to your signage needs is our goal. Learn in minutes to produce and schedule a professionalarray of screens for any business need. Use any computer to update your signage, no software to load or learn. No need for IT support just plug and play our unit. The Retriever gives you the complete package whether you have one or a 1001 locations. www.drmretriever.com
viewstation LCD Enclosures Since 1985, ITSENCLOSURES has been a leader in providing protective enclosures for PCs, electronics and LCDs. The viewstation enclosure line provides vandal-proof, all-weather enclosures for all of your digital signage needs. With the capability to be used indoors or out and fully customizable features, the viewstation line can accommodate a single display or multiple displays within one enclosure. The viewstation enclosures are equipped with state-of-the-art technologies, including anti-reflective tempered glass, integrated thermal management, tamper resistant locking mechanisms, and various mounting options. Digital signage with viewstation protection will ensure the message displayed will reach its intended audience with unmatched style, clarity, and protection. www.viewstation.com
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RoomRoster™ New Power Over Ethernet Room Sign. The RoomRoster™ is a digital sign with a built in MagicBox player and comes with the MagicBox database integration software, EZ-Stream, for pulling information from a relational database. This will provide end-users with an affordable solution for automatically displaying schedules and agendas outside of conference rooms, convention halls, and meeting rooms. The RoomRoster product line is a 5.7” and 10.4” fully enclosed display. This display utilizes Power over Ethernet (PoE), making installation even simpler. With PoE, you only have to run one Cat5e or Cat6 cable to the display and that cable will carry power as well as ethernet connectivity. www.magicboxinc.com
Signage Solutions
Products
Signage Solutions & Products HumanKiosk with 4G Video Presence The HumanKiosk is a free-standing, interactive digital signage solution that integrates 4G networking Video Presence technology. In addition to running digital promotions the system also supports a live, two-way video session between a consumer in a retail store with a product question and a representative of that product from virtually anywhere around the globe. This enables a consumer to be much more actively engaged in a product experience though a live conversation with a representative of that product or service. www.mediatile.com
Versatile New Converter The SC-VHD-HDMI, a VGA/YPbPr to HDMI Converter with Audio. This unit can convert and scale either Component (YPbPr) or PC Analog video with audio into an HDMI or DVI-compatible signal. The video processor combines the functions of a video scaler, scanconverter, and format transformer. The SC-VHD-HDMI also includes a horizontal mirroring feature, which is useful for Teleprompters and rear-projection systems. The unit encodes the audio input signal from TOSLink (Optical) or Analog (L/R) to both digital and analog formats and outputs it on HDMI along with video. For convenience, both line level analog and optical digital audio outputs are also provided. www.hallresearch.com
Complete Digital Signage System Cisco Digital Signs is a complete digital signage system that integrates management software, network-based media players and LCDs. Combined with end-to-end services and a robust partner ecosystem, Cisco Digital Signs delivers the most comprehensive digital signage offering. Ideal for organizations in a wide variety of industries, Cisco Digital Signs can help enhance the customer experience, facilitate companywide communications and training, and boost sales. Cisco Digital Signs fits easily into your organization’s existing IT infrastructure and is built on the power of the Cisco Digital Media Suite, a comprehensive offering of social video, business IPTV and digital signage systems. This single platform for multiple applications enables you to expand your digital signage deployment and reach audiences through multiple endpoints. www.cisco.com/go/dms
New High Contrast Display Modules
Digital Media Suite
New LED Module design repels dust and dirt so the deep black face plate stays that way. The special coating we use absorbs light and reduces surface reflections better than anything previous. This allows the true vibrance and luminosity of our displays to come through and deliver an outstanding image with the highest possible contrast. www.yesco.com
Starmount’s Marquis Digital Media Suite is an easy-touse, cross-platform software suite to assemble, schedule, playback, and monitor digital media. Marquis features a simple user interface to create content, manage assets, develop playlists, schedule playback, and play digital media on any size screen across your network. It provides all the tools needed to organize and manage promotional, informational, and advertising content for display on monitors, kiosks, and a variety of digital media devices.
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Signage Solutions
Products
6 Steps to a Customer’s Memory Ad Oasis (AO) is a multi-sensory, memoryengaging digital out-of-home communication tool that delivers a message by engaging all 5 human senses. AO cements memory, inspiring thought and motivating action, well after the experience. It’s a self-contained portable unit standing more than 7’H with a backlit display, available in any color. Showcase printed graphics or demonstrate product on AO’s optional 47” LCD television display, controlled remotely from any wireless internet connection. Play MP3 music heard through AO’s 150-watt speakers. Add customized fragrance to the audio and video activity to further enhance message into ones long-term memory, plus ambient air temperature control. www.ad-oasis.com
Zero Bezel Video Wall Whether it’s 4 or 400 displays needed to envision the ultimate video wall, let the experts at Philips take you through the process. “Simple” systems can be configured from a single PC or Media appliance with the aid of our on board “Tiling” software. This allows the novice Video Wall architect to create a compelling canvas up to 25 screens in scale. Need more horsepower, no problem, let us introduce you to the experts in the category. www.publicsignagesolutions.philips.com Say it in HD – 52” Displays ViewSonic’s 52” CD5230 Commercial Display is designed for use in educational, retail, public and commercial signage applications. Full 1080p resolution provides a clear view in any installation. Generous screen size and slim bezel make your message stand out in a big way. Multiple connectivity and resolutions provide you with lots of options for showing a diverse set of digital signage content; from movies, to internet pages, PowerPoint, Flash, and much more with ultimate HD clarity. Display your vivid graphics and stunning video beautifully with this larger, bright and high contrast screen. www.ViewSonic.com
Digital Technology for Today’s Applications
Energy Efficiency In Large Format Displays The 550EXn LED LFD is part of Samsung’s Syncmaster LED LFD EX series, which are the first LFD displays to incorporate LED Backlight Unit (BLU) technology providing a significant savings on energy consumption in a lighter, thinner, and easier to install set-up. The 550EXn benefits from a 120 Hz panel refresh rate, allowing for faster and smoother scrolling text and digital signage content. The full HD 1080p native resolution provides a crisp moving, scrolling or stationary image with a 4,000:1 contrast ratio. www.samsung.com
High Brightness Widescreen Projector The PLC-WTC500L LCD projector achieves a high brightness of 5000 lumens, a contrast ratio of 3000:1, and delivers a WXGA (1280x800) native resolution. Outfitted with a new optical engine using an inorganic panel, the PLC-WTC500L also features SANYO’s Lamp Selection System, which automatically selects one of two lamps to project from, making it perfect for Digital Signage applications because it is possible to project approximately 6000 hours before its time to replace the lamps. www.us.sanyo.com
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Signage Solutions
Products
Signage Solutions & Products
Outdoor Digital Menu Boards
WAND Corporation’s three-panel outdoor Digital Menu Board (DMB) dynamic content is fluidly updated, rotated, and arranged to compliment product offerings and new promotions to drive sales. The three 46-inch high definition LCD screens are readable in sunlight glare or from bright headlights and each have their own climate-control system to ensure maximum performance in all weather conditions. Built into the DMB is an available Order Confirmation Display (OCD) that integrates with WAND POS. WAND offers a single-panel outdoor DMB, an outdoor Simple OCD, and indoor Digital Menu solutions as well.
www.wandcorp.com
Distribution of Digital Signage and HD Video ZvBox® 170 is a rack-mount, fan cooled HD encoder/RF modulator that distributes VGA and component video sources as an HDTV cable channel over existing coax cabling to standard HDTVs. Setup is easy with newlydeveloped front-panel controls – no PC is required. The Zv channel is simply tuned in using the digital cable tuner in the HDTV, and there is no limit to the number of HDTVs that can receive the signal from a single ZvBox® 170. www.zeevee.com
Plasma Matrix Signage LG Electronics’ newest digital signage product is a virtually seamless 120-inch display created using four 60-inch plasmas in a 2 x 2 matrix. It boasts a 4mm seam size so viewers can experience the images with less distraction. This video wall displays in full 1080p and is versatile enough for any hospitality setting, shopping mall, exhibit, or public transportation venue. Additionally, its 1,000,000:1 contrast ratio and brightness level of 1,500 cd/m2 ensure viewers will enjoy robust picture quality and a more detail-rich content viewing experience. www.lgcommercial.com
Videowall Mounting System
Web-based Digital Signage Content Creation Platform Announce is the first of Visix’ next generation communication products, based on an entirely new application architecture that offers robust management of media assets, animated templates and themes. Announce’s primary user interface is web browser based and uses inductive navigation to make tasks obvious to even the most casual user. The power of a traditional desktop designer user interface is now available from within a web browser, powered by Microsoft® Silverlight®. Announce enables the easy use of asset management, fill-inthe-blank and generated templates, integrated theme support, and a media player. www.visix.com
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The Videowall Mounting System, a modular flat-panel framing system and designed to create large videowalls with multiple largescreen displays mounted vertically and horizontally in any formation. Its design allows crucial adjustments for tilt, level, lateral and shift adjustments to ensure a precise and seamless fit of all displays in the installation. Self-aligning wall plates can be installed quickly after leveling the first wall plate. Unique scissor mounts make the installation and servicing of the displays quick and easy, saving installation time. www.mounts.com
Signage Solutions
Products
Digital Signage and Multimedia Solutions Innovative new MediaCento solutions reduce the costs and challenges About Black Box. Black Box Network Services is a leading digital signage and multimedia solutions provider, serving 175,000 clients in 141 countries with 194 offices throughout the world. Black Box offers more than 118,000 products including media players and digital signage appliances for plug-andplay implementation of high-impact signage. The company’s premier digital signage offering, iCOMPEL™, gives businesses and institutions an affordable, easy way to set up high-impact signage. Black Box also offers LCD and plasma displays, assorted AV extenders, splitters, switches, and converters, as well as cabinets, cables, and data infrastructure products. All products are backed by free, live, 24/7 Tech Support, which customers can reach at 724-7465500 or at blackbox.com. Black Box is also known as the world’s largest technical services company dedicated to designing, building, and maintaining today’s complicated data and voice infrastructure systems. www.blackbox.com
32-inch LCD for Cost Concious Digital Signage Customers The V Series was designed with small businesses in mind, for those applications that require commercial-grade technology on a limited budget. The high-definition V321presents new, convenient features that simplify the customer experience, such as the built-in text ticker feature. This enhancement enables end-users to dedicate a portion of the screen to emergency warnings or breaking news. While the primary, scheduled content is displayed and fills the majority of the screen, the secondary ticker information can be displayed on the lower, remaining portion of the screen through a separate input. Other improved features include quick input change for faster switching between sources, advanced terminal settings and monitoring and control over Ethernet, including email notifications in the event the display encounters an error.Additionally, its SPVA panel contributes to the increase in contrast ratio from 800:1 to 3000:1 and the reduced number of CCFLs, relating directly to the decrease in mercury content. www.necdisplay.com
900 MHz Outdoor Wireless Ethernet Radio This robust and reliable product allows you to build non-line-of-sight, point-topoint and point-to-multipoint wireless Ethernet connections that connect “fringe” IP devices, including digital signage. The AW900xTR radios include a built-in web browser interface for remote configuration, status monitoring and firmware update. This interface also provides a spectrum analyzer to help diagnose interference issues. www.avalanwireless.com
43-inch Panoramic Vision LCD Displays Spatial limitation is a challenge to conventional public display; users are left with few options to choose between unappealing display panels or those with limited capacities. Hyundai IT 43” Panoramic Vision C430ML LCD display, it solves these problems. Users can implement creative applications that open up the new and effective ways of appealing to customers in landscape as well as portrait format to match the installation environment. HYUNDAI IT 43-inch Panoramic Vision LCD Display offers advertiser the unique and visually appealing product images to the market, receiving the most effective advertisement result, and generating more business opportunities. It features high brightness (700cd/m2) and high resolution 1920 x 480 (UHVGA). www.hyundaiit.com July/August 2010
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Signage Essentials Understanding the Basics Content IS King Knowing the right formula is the key to success
T
raditional advertising is becoming a thing of the past. As technology advances, fewer consumers are watching or listening to commercials. However, with the advance of digital content, it has become easier to capture an audience when advertising is most effective: while they are at the point of purchase. But this is only true if the right content is presented in the right manner. Spending millions of dollars on displays and screens is futile without the proper plan for content distribution. The right message, sent at the wrong time, is not an effective message. Many ingredients go into the delivery of the right content.
Reaching the Audience The first step in the creation of material is to understand the client’s business, including products and services. Because advertisers now have the ability to reach the consumer while at the place of business, they can have a great influence on their choices in purchases. For example, let’s say a sandwich shop makes more profit on turkey than on roast beef. Wouldn’t it make sense for the owner to encourage his customers to buy turkey rather than roast beef at the same
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Properly formulated content is crucial to running a successful business. It will not only increase business profits but also ensure the best experience for the clientele. The buyer will be more educated on available products and services—and thus more apt to buy them. Further, the entertainment value will encourage those clients to return at a later date. price? What if his store had a television with content that included studies on the health benefits of turkey? Beyond the impulse buy, a digital signage company must understand its client’s goals as a whole. The same sandwich shop may become more efficient—and thus more profitable—by taking fax or phone orders. Or perhaps Tuesdays are very slow after the lunch rush. In this case, it may benefit
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By Kim Sarubbi
the owner to offer a free bag of chips to all fax or phone orders or advertise a special offer for customers who buy a sandwich on Tuesday afternoons. Without a complete understanding of the client’s business model, it is impossible to fully service the client.
Understanding the Business Another critical aspect of digital advertising is to know the audience. In an OB/ GYN clinic, does it make sense to run programming that includes fishing or golf to a predominantly pregnant audience? The content would not be capturing the attention of the majority. If the content does not captivate the audience, advertisers cannot display their products and services effectively. Once the content can capture the audience, targeted advertising can be carefully mixed in. Ideally, both programming and advertising content will help to increase sales. Further, on an advertiser supported network, targeted advertising content ultimately leads to higher CPMs.
The Right Timing Now that we have a better idea of what type of content we want, it’s time to decide how much we need. The patient in the OB/ GYN office may be sitting in a waiting room for hours, while the sandwich shopper may be in and out with lunch in hand in a few minutes. Due to the limited time that a client spends in a sandwich shop, the impulse purchase reaction has to be induced rather quickly. However, if there is sufficient dwell time to cultivate a relationship, such as in the OB/GYN office, then it is critically important to balance programming and advertising content. In this scenario, education videos are ideal because they can help to minimize time that the doctor has to spend with each patient while also entertaining patrons in the waiting room. The most difficult part of the content development is creating the right balance.
Content must always be relevant to the venue. For example, in a veterinary practice, programming and advertising content should always relate to veterinary services or pet products. An experienced content company can help its clients achieve the proper balance between educational programming and advertisements, as well as determine the content’s proper running time based on a specific venue. Properly formulated content is crucial to
running a successful business. It will not only increase business profits but also ensure the best experience for the clientele. The buyer will be more educated on available products and services—and thus more apt to buy them. Further, the entertainment value will encourage those clients to return at a later date. Trial and error is a wonderful way to determine the proper formulation of all the key ingredients, but it is not the most efficient.
In fact, it can take years to achieve the right balance for certain venues. Once the proper formulation is developed, the content must be produced and implemented. With efficiency in mind, the best combination is a company that not only has the knowledge but can also produce the content and deliver the finished product. SSM Kim Sarubbi is the president and CEO of Saddle Ranch Productions.
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Advertiser Index AVALAN WIRELESS www.avalanwireless.com .....................................................................................................Back Cover BLACK BOX NETWORK SERVICES www.blackbox.com ................................................................................................... 11 CISCO www.cisco.com/go/dms.......................................................................................................................................... 17 DIGITAL SIGNAGE EXPO www.digitalsignageexpo.net....................................................................................................... 24 FLYPAPER www.flypaper.com................................................................................................................................................ 9 MITSUBISHI ELECTRONICS www.mitsubishi-presentations.com....................................................................................... 21 NEC DISPLAY SOLUTIONS www.necdisplay.com.............................................................................................................. 29 RESPARIO www.digitaladgroup.com................................................................................................................................... 35 SADDLE RANCH PRODUCTIONS www.saddleranchproductions.com................................................................................ 5 SAMSUNG www.samsung.com/business................................................................................................... Inside Front Cover SYMON www.symon.com...................................................................................................................................................... 3 TATUNG USA www.tatungusa.com..................................................................................................................................... 27 X2O MEDIA www.x2omedia.com......................................................................................................................................... 40
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Signage Solutions Digital Technology for Today’s Applications
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July/August 2010
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By The Way Examining the state of the digital signage industry By Steve Gurley
Before inspecting the state of the
digital signage industry, it is vital to understand the architecture, operating models and business models that power the marketplace. In such a multi-faceted industry, the interplay between each can have a huge impact on every corner of the business.
Architectures and Components
Operating Models A digital signage system may be operated on either a “hosted” or “premises” basis. The terms hosted and premises refer to where the two major components of a digital signage system (e.g., the content management and scheduling software) reside, how they are operated and how they are billed to the venue owner, if billed at all. Each of these is defined as follows: Hosted-based System (also known as a Softwareas-a-Service or SaaS system) A hosted system is a digital signage system that is administered and operated by a third party on a server that is remotely located from the venue in which the media players and screens are installed. In a hosted model, the venue owner is given access to the scheduling system, usually via a Web browser, in exchange for a monthly subscription fee. The remotely-hosted content management software then communicates content to the venue’s players/ screens via the internet. The key benefit of a hosted system is that it requires little up-front capital commitment by the venue owner, because major hardware and software components are not purchased. The downside is that almost every aspect of system, including features, functions, operations and management, are out of the venue’s control. Premises-based System: A premises-based system is a digital signage system that is purchased up front and then installed at the venue’s premises, on its hardware and behind its firewall. The system also is operated on venue’s network.
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The primary function of a digital signage system is to play multimedia content on one or more electronic screens installed in venues (e.g. retail stores and hotels) for the purpose of informing, educating, entertaining or persuading viewers. At its most elemental level, a digital signage system is four technologies working in concert to support the primary function. These four technologies are a content management system, a content-scheduling system, one or more media players and one or more displays. The content management system manages the collection and distribution of digital assets (including videos, graphics, pictures and text) to one or more displays on a visual communications network. The content management system is the heart of a digital signage system. Sophisticated content management systems manage the real-time collection, delivery and display of data, manage access to digital assets, provide user access administration, manage approvals, provide proof-of-play reporting, provide network utilization/management controls and support data visualization. The scheduling system typically directs how the content management system handles the collection and distribution of digital content. In other words, the scheduling system tells the content management system which asset to play, where, at what time and on what date. The more sophisticated scheduling systems allow administrators to define content transition effects, content layering effects, content triggering rules, schedule repeats, interactivity and more. The media player can be broadly defined as the interface
between the content management system and the screen. It is the media player’s responsibility to collect the digital assets from the content management system and then pass them on to the screen in an appropriate format for the screen. A typical digital signage installation is concerned with deploying screens that have high mean times between failures, are equipped with anti-burn-in technologies, possess high energy efficiency ratings, support standard display protocols, and feature commercial-grade cases and warranties.
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Photo courtesy of GestureTek
The key benefit of the premises-based system is that the venue has complete control of the system, both from an operational and security perspective. The downside is that it requires a larger initial capital investment and a more expansive operational support commitment. This model is typically embraced by companies that demand maximum control of systems that run on its IT infrastructure.
Business Models The business model refers to the ways in which a digital signage system is offered to the venue owner. There are three business models from which venue owners may choose: ad-funded digital signage, traditional digital signage and ad-supported digital signage. In an ad-funded digital signage deployment, a third party provides a digital signage system to a venue at little or no cost to the venue owner. The third party then seeks to recoup their initial capital outlay and ongoing operational expenses by selling ads that will be subsequently shown on a dedicated portion of the venue’s screen. The venue is free to use the other non-dedicated areas of the screen to deliver their message, which is typically focused on informing, educating, persuading or entertaining viewers. This is a model that is typically used today by grocers, pharmacies, quick-serve restaurants, convenience stores, small businesses and small retailers. The key benefit of this model is that the venue owner incurs little to no cost to deploy the system. The downsides, however, are many: No control over the total message being delivered, no control over the features/functions of the system and little to no control over system stability. Ad-funded digital signage systems are almost always provided to venue owner on a hosted basis. In a traditional premises-based digital signage deployment, the venue owner purchases the digital signage system to address a specific need, which, again, is characteristically focused on informing, educating, persuading and/or entertaining customers or employees. The venue owner then takes fiscal and operational responsibility for maintaining the system and the content shown thereon. Typically, corporations, hotels, casinos, universities, hospitals and banks use this model. In a traditional hosted digital signage deployment, the venue owner contracts to use the digital signage system on a subscription basis to address a specific internal need. The venue owner usually pays a monthly subscription fee for access to the system and then supplies the content to be shown thereon. Typically, smaller venues such as small to medium-sized businesses use this model. An ad-supported system is a hybrid of the ad-funded and
Digital Technology for Today’s Applications
Photo courtesy of Samsung
traditional models. In an ad-supported model, the venue owner uses the system to meet a specific internal need but then work to sell advertising to either off-set the cost of the system or to make money from the system. Ads are typically sold to companies that do business with the venue, and both the venue owner and advertiser typically benefit from the success of the ads. The ad-supported model can either by premises-based or hosted. The premises-based version of this model is typically used by large retailers, mall operators, arenas and stadiums. The hosted version is typically used by small businesses.
Where We Stand The industry as a whole is doing well. However, five years ago it was forecast that by 2010 the digital signage market would reach nearly $2 billion in revenue. In reality, the industry is generating less than half of that. The current pool of digital signage manufacturers is finding that the smaller revenue pool is making the competition extremely intense. Hardware manufacturers and software developers are engaged in a fierce struggle to capture a piece of the smaller pie. As the competition has intensified, prices have come down. As prices have dropped, more digital signage suppliers have gravitated toward a hosted model as a way to compete in a low-cost environment. Suppliers of low-end premises-based systems are seeing tough competition from an ever-growing pool of hosted suppliers. Even the screen manufacturers are getting into the hosted solutions game. In the last month alone, LG released a low-cost hosted solution, and NEC announced a free hosted offering. Most likely, hosted solutions will do well with small and medium-sized businesses but will not make signifiPhoto courtesy of GDS cant inroads in large corporations.
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Photo courtesy of DynaScan
The Road Ahead
ad-funded model has just not been able to provide the quantitative measures or the broad reach (i.e., number of network signs) that agencies demand. Ad-funded signage also will come under increasing threat of attach from newer, more compelling technologies such as mobile advertising. Traditional digital signage will continue to grow as more corporations use electronic displays to replace old, large-print signage. The premises side of traditional signage will continue to be the primary growth engine for digital signage. Digital signage has the glitz that large corporations want and can afford. Ad-supported digital signage will do well. Companies like Wal-Mart will increasing deploy digital signage and will look to their suppliers to help fund the systems. There has been tremendous growth of this model in Europe as major retail brands have adopted the ad-supported model. In summary, the digital signage industry will grow but not at the breakneck pace predicted five years ago. Prices will come down as technology improves and as competition plays a governing role on the market. The low end of the market will be relegated to low-cost hosted solutions, and the high-end of the market will be ceded to those providers that can offer feature-rich premise-based systems. Traditional premises-based signage deployments will be where the big money will flow, followed by ad-supported. SSM
Those companies that are delivering ad-funded solutions will continue to grow but at a slower pace. Ad-funded digital signage has had a tough time attracting advertisers and agencies. The
Steve Gurley is the senior vice president of marketing and new market development at Symon Communications Inc.
It is clear that these new hosted entrants will steal business from premises-based suppliers that have no compelling value-add. Premises-based suppliers that can offer advanced features, such as interactive signage, real-time data, sophisticated content transactions and the delivery of content to a broader range of displays—including mobile, desktops, kiosks and marquees—will continue to do well. However, they will still feel the pinch of price competition.
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