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The top 10 digital signage trends for 2009
Broadcasters, agencies and brand marketers represent the up-and-coming players in the digital signage space.
Keith Kelsen is executive chairman of the board of The MediaTile Company and chair of the Content Committee for the Digital Signage Association.
Trend #1: Content is the next main talking point for the industry
This will be a pivotal year for great content. As an industry, we now have great, proven technology to deliver messages across DOOH networks, so now what? Dare I say it? I have to! "Content is King." Why?
Since prehistoric times, as evidenced in cave paintings, people have used images, placed where others would encounter them, to communicate important information. For over 120 years, rapid advances in technology have transformed human communication, delivering information faster and to a greater degree of relevance. The technology that has led us to a new medium, digital signage, has become commonplace. Now, more than ever before, "the message is the medium." The content running across screens provides digital signage its moment to shine. As a new medium, digital signage needs to define its own creative approach to content.
Trend #2: Traditional broadcasters are getting into the digital signage marketplace
With television industry facing an unprecedented downturn, manufacturers and producers of content are looking to expand and capitalize on the DOOH/digital signage industry. It is the natural evolution as a new media develops that many companies put resources into testing the market. Some jump in with both feet as they have no other alternative.
Production houses employ expert creative teams that can bring top-quality content into the world of digital signage. Some will have to play catch-up; some will leverage web and flash skills to optimize great content for this new medium, for maximum impact, and to achieve unprecedented returns. We will likely see acquisitions coming from the TV broadcasting industry, companies essentially buying their way into the market to make up for lost time in the DOOH industry, around technology and production.
Trend #3: Agencies are awaking to the power of digital signage
Many agencies are realizing that DOOH is a valuable area to explore. It is a difficult transition from traditional media to DOOH. Some agencies are prompting brands to buy into this burgeoning market. Open software platforms for the DOOH market will excel as they allow cross network placement, helping agencies drive more comfort and scale widely across the digital signage landscape.
Agencies are also realizing that DOOH includes more than digital billboards; that it extends beyond this early digital signage incarnation. DOOH is being used to build brand networks at the shelf and in-store, to capture the consumer at the best possible time: at the point of decision. In-store media is the new frontier for agencies looking to expand product presence and increase sales at the shelf. The good news is that the media is measurable with real sales-lift as proof. In-store media is more than just capturing "eyeballs" and branding, it is about the merchandising and selling of product -not to mention the resultant tremendous in-store associate training benefits gained at the same time.
Trend #4: Brands are shifting money to this market from traditional TV
Major brands are moving into the market, right now. Once traditional TV viewership declined, they began looking for more effective messaging. This trend began last year when a few brands bypassed their agencies and began experimenting directly with DOOH. Building brand networks in-store at the shelf is a critical part of this strategy. For brands to survive and retain customers, they must spend money at the point of sale, or risk losing customers to generic brands. Once lost, a customer is tough to win back — and expensive. This trend will grow geometrically as sales become hotly contested.
Trend #5: Cross-platform and interaction with cell phones is critical
In the past year, Bluetooth and text message integration passed its experimental and pilot phases. The connection and symbiotic relationship between display and cell phone will continue to grow with more deployments in 2009. Consumers are ready to utilize this technology today.
Personalizing features by offering coupons and other media on handsets will further drive sales at the shelf. Tracking these interactions to measure the success of a network will also play a part in the overall success of the campaign. Digital signage will take a front seat in this area, adding value to the entire digital communications grid.
Trend #6: Interactivity and measurement
Along with interaction with cell phones, interactive technologies will propel the industry to enhance new consumer experiences, from touchscreens to floor screens and from window touchscreens to gesture-enabled interaction. The engagement of the consumer adds tactile to visual, and helps to create an emotional connection with the brand and product. As was the case with cell phones, 2009 will see more than simple small pilot projects, it will boast large-scale rollouts vying for consumer's attention, ramped up to unprecedented levels.
Measurement proves the maturity of the industry and is key in 2009. Data collected from interactive solutions, and delivered upstream will give DOOH another powerful asset in the form of market intelligence and direct consumer feedback, for marketers and agencies to measure the success of their campaigns.
Trend #7: Data-driven content or ad search for DOOH
As an increasing number of large networks emerge online, and the number of displays grows geometrically, creation of individual playlists that are relevant to a specific display and associated audience will become a thing of the past. Just as with Internet search engines, metadata for content and screens will ultimately be matched for the right time, place, target and behavioral attitudes. This will allow access to data bases that have ad content and remove the complexities from decision-making focused upon ‘when', ‘where' and ‘why'. This will establish the industry as leading edge, not trailing edge.
Trend #8: Cost of LCD and players is entering next phase of cost down
LCD screens are declining in price and have been for the past six years, a trend which will continue. Innovations on the media player side will also bring pricing down. Quality is still a significant factor, and will be critical in keeping networks up and operational 24/7. Declining cost is not a substitute for reliable and scalable technology. Total investment and ROI still require a quality platform.
Trend #9: Consolidation and failures will continue
In these unprecedented economic conditions there will be failures and consolidations in 2009. This is both good for the industry and bad. Though we may see failures undermining the integrity of the industry, the pieces will be picked up and business models changed to improve the industry overall in 2009; the prevailing economic situation will simply accelerate this evolutionary process. There will be success for companies that are established, have good business models and have the cashflow to endure. 2010 will be the year of winners in the end game, where a few companies dominate the market.
Trend #10: Growth for the industry is moderate, but positive
Notwithstanding my previous comments, industry growth will be moderate. Digital signage networks have the opportunity to reduce costs, save resources and communicate powerful messages. These are attributes that will spur continued growth as companies worldwide re-evaluate every element of their communication plans. Looking closely at the models and businesses that benefit by taking advantage of digital signage technology will be the key. Making the case to use digital signage is our job as an industry, and this will be yet another year of growth.
ROIAdvertisingState of the Art Digital SignageDigital MerchandisingCustomer ExperienceRetailMediaTile
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