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CES through a digital signage lens

Consumer electronics lends its hand in shaping public opinion about digital media.

January 21, 2009 by Lyle Bunn — Strategy Architect, BUNN

To view the Consumer Electronics Show (CES) through the lenses of digital signage is to see a future of media interactivity, interoperability, integration and presentation.

The 2,700 exhibitor-show floor was technology and device-centric, while the keynotes and conference sessions were more media-centric, with a focus on monetizing content, distribution business models and platform extension.

A 55-inch Samsung LCD at CES 09, only 6mm thick. (Photo by Keith Kelsen.)
The overall outlook of the show indicated a slow growth market for consumer electronics, projected at -0.6 percent for 2009. The desire of the industry is clearly creating appeal and value for a plethora of consumer electronic products through incremental improvements.

Some interesting points of comparison:

• Consumer electronics (CE) 2008 worldwide revenues were $700 billion with 5.4 percent compounding annual growth rate in contrast to the multi-billion dollar digital signage industry and its 25 percent CAGR projected into 2012.
• The media interactivity or playout device of CE is purchased by the consumer, while the digital signage media player is provided by those wishing to be more effective communicators. Consumer-purchased devices can suppress communicator capabilities, unlike digital signage.
• CE cares deeply about making content, in particular entertainment, available for CE playout, and increasing the level of interactivity in gaming, social networking and interfaces.

The value in these observations is that CE helps shape public opinion about visual media presentation applicability and quality, as well as interactivity. The use of LCD displays, for example, "softens the ground" and creates acceptance for the use of commercial out-of-home and workplace digital signage. It also points to some other key directions:

"Simple" signage: The use of small-form signage in which a digital display is placed on a store shelf, service counter or product rack has the potential for explosive growth. Adding capability to the "digital picture frame" format such as content loading, playlist management/dayparting, animated media format playout and power consumption could see this consumer electronics product migrating into commercial application. TheSimplePicture.com and other commercial-grade, embedded service models can expect revenue acceleration as small form display is increasingly used.

Content creation: The announcement ofwww.YooStar.com, a YouTube-like site that uses webcams to allow users to "star" in movies, in the CES opening keynote reflected the importance placed on media by the consumer electronics industry. YooStar reflects an interesting convergence of user created content, social networking and feature film, and points to the type of content production efficiencies that some digital signage content producers have pioneered.

Audience targeting: The advertiser's dilemma is that it wants both highly focused audiences and mass messaging at the same time. The consumer electronics device offers hope, but the inherent "audience of one" works against a scalable and massive model. This serves to position digital signage as a middle media that can drive a mobile device opt-in, such as SMS text, download or call-in. Digital signage supports the cost effective addition of mobile to communications planning.

Cisco, Sony were the stars of CES

The star of the CES 09 was John Chambers, CEO of Cisco, who outlined the company's innovations and execution to support collaboration, and in doing so, capturing a market transition to a better, more cost-effective way to communicate and improve a location experience.

The natural market adjacencies of consumer electronics, digital signage and other network-based visual communications tools was made clear, while the significant potential for business cost savings, productivity improvements and new approaches for growth and the better use of resources was apparent. A Cisco webinar, developed with Digital Signage Today and planned for Feb. 10, will outline how the element of digital signage fits into the visual media platform.
 
Watch the Cisco keynote video from CES 09.

Sir Howard Stringer, chairman and CEO of Sony Corp., presented "CES Seven: Imperatives for Creating the Ultimate User Experience." I thought he provided excellent guidelines for digital signage providers:

1. Embrace the fusion of industries 2. Adopt a service-enhanced philosophy 3. Make products multi-functional, so that different types and sources of content can be easily accessed, managed and organized 4. Support open technologies 5. Advance the new, shared experience 6. Create new value chains 7. Go green, be green, profile "green-ness" 

Based on what I saw as CES, digital signage, as it relates to both commercial applications and consumer electronics, will develop further to become a stronger breed of double helix-ed DNA serving the advertisers' and communicators' worlds. 

Lyle Bunn is an independent consultant, advisor, commentator and educator to investors, operators, suppliers and users of digital signage and digital out-of-home (DOOH) Media.

 

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