Article
Digital signage industry reacts to prospect of second association
Eyes turn to Las Vegas for press conference, DSA board meeting.
February 19, 2010 by Bill Yackey
The surprise news from Digital Signage Expo last week that it planned to launch a second trade association overshadowed much of the routine activity in advance of DSE's annual show in Las Vegas.
While exhibitors crated signs and presenters spell-checked their PowerPoints, officials representing the multiple stakeholders volleyed press releases, responses and blog posts across the Internet. And in what some called the first overt act of aggression in what threatens to be a protracted contest between two associations, DSE revoked credentials for attendees from JD Events, which owns and operates The Digital Signage Show, a semi-annual competing event.
The biggest reaction came from board members of the Digital Signage Association, which is in its third year. (The association is owned and operated by NetWorld Alliance, publisher of this Web site.)
DSA, which has more than 420 members, responded Thursday with a letter to members, signed by its Executive Committee. The letter indicated that the group was seeking a tradeshow option, and that it was taking steps to register for non-profit status and independence from NetWorld Alliance. Those initiatives, along with "a complete set of activities and benefits in line with the desires of … members," have been part of the agenda for a 19-member Strategic Planning Team for the association that was formed last year, the letter said.
"We are disappointed to see that rather than responding with a strong proposal to work with our group on the tradeshow initiative, DSE has chosen to try to preserve its commercial interest via exclusive ownership of their tradeshow and to propose a new association that in essence would duplicate many of the existing and planned programs of DSA," the letter said.
Stuart Armstrong, president of the DSA, echoed much of the letter in a blog posted Thursday afternoon on DigitalSignageAssociation.org. In addition, he said that a vote whether to apply for non-profit status would take place at the DSA's semi-annual Advisory Board Meeting, Tuesday, Feb. 23, at the Las Vegas Convention Center—ironically, held in conjunction with DSE. Armstrong also said in the post that the DSA will "send out a request for proposals from trade show management companies to partner with the DSA on management of an industry tradeshow."
Lou Giacalone, president of CoolSign, is one of the 19 members of the Strategic Planning Team, and was supportive of independence from NetWorld Alliance and creating an official tradeshow relationship with a show.
"I feel good that all of the issues put forth as to why [DSF] was necessary have been discussed and will be discussed at the DSA meetings," he said. "The industry is working toward exactly what needs to be done."
DSE officials have deferred requests for comment to a press conference to be held at the show.
Roots
Observers say the possibility that DSA would create an official tradeshow relationship was the catalyst for the new association.
DSA board members believed that revenue from a tradeshow would be necessary to fund independence from NetWorld Alliance and to create the benefits the association needed to stay viable. Digital Signage Expo responded—not by expressing interest to bid, but announcing it would launch The Digital Signage Federation.
"There will be all kinds of motives behind the DSF's creation," blogged Dave Haynes, a partner with The Preset Group, a digital signage consultancy. "But at its root it only makes sense for the DSE people to protect their turf and do what they can to keep the DSA people from establishing their own tradeshow."
Ken Goldberg, CEO of Real Digital Media, a DSA member, believes DSE (owned and operated by Exponation) may have seen an opportunity when calls were heard for DSA to separate from NetWorld Alliance. "[Exponation] looked at [an independent organization] and said, ‘If they aren't going to do it, we're as well positioned as anybody to do it,'" he said. "And they could learn from DSA and avoid controversy. And they have a big hammer called DSE."
Another dynamic is the role yet to be played by JD Events' The Digital Signage Show, a semi-annual exhibition that competes with DSE.
According to a Saturday morning post on DailyDOOH, DSE has revoked the show passes for attendees from JD Events. The move bodes poorly for the tenor of relations among show producers and associations, some say. One unnamed observer told DailyDOOH, "This is not exactly the behavior of a group that wants to do what is best for the industry."
Lawrence Dvorchik, an official with JD Events, responded by e-mail to DigitalSignageToday.com.
"As a fellow show management organization, JD Events appreciates that Exponation reserves the right to deny entry to anyone, at their discretion. We understand and respect their decision, and will not be entering the DSE Exhibit Hall next week," he said.
What's next?
When it comes to the growing digital signage industry, two associations scrapping it out might not be better than one.
"I'd really, really hate to see two anemic organizations competing for resources and mindshare, so it'd be best for Exponation and DSA to work out their differences," said Bill Gerba, CEO of Wirespring, in his blog.
Some have already suggested that DSE and DSA somehow collaborate by merging the two associations, and letting DSE serve as the new association's official tradeshow.
"I think the most expedient option would be to take the base of DSA, negotiate some kind of merger and arrangement with DSE, then publish financials so every member knows what percentage of the gross or net dollars are going to the association and what is going to Exponation," Goldberg said.
In the end, it seems that the industry is looking for representation, advocacy and education from an association, regardless of the commercial entity that launched it.
"My view from the bleachers is that I and probably a lot of other people don't care what the trade association is called or who is behind it," said Haynes. "We do want to know whether it is worth the investment of money and, more so, time."
Andrea Yolo, senior manager of a digital media technology team for a major IT company which is not a member of either association, echoed the utilitarian perspective. She posted the following tweet on Wednesday: "Digital Signage Expo announces new industry associationhttp://ow.ly/18qyw/via @DigSignageToday (long overdue - going to sign up)"
Yolo later said that she is going to DSE next week and plans to talk to the newly formed DSF.
"I like the idea that it's an independent organization. I like the idea that it's not for profit," she said. "But at the end of the day, [the question is] where am I going to get the most bang for the buck?"
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