Digital Signage: Retaking Control Of Advertising Really Matters
Topics: Digital signage growth forecast, why digital signage works better, OOH advertising set to grow, capt
A report published in late August by media industry analysis Screen Digest forecasts digital out-of-home revenue will quadruple in Western Europe over the next five years and by 2012 will account for 10 percent of all out-of-home revenue.
The report “Digital Signage in Europe: opportunities for digital out-of-home advertising,” points out that net revenue generated from digital out-of-home advertising in Western Europe on digital signage networks in airports, train stations, supermarkets, hotels and other public spaces will grow from about $200 million in 2007 to more than $781 million in 2012, or a compound annual growth rate of 32 percent. In fact, the report foresees that the out-of-home advertising sector, driven by the migration to digital technologies, will be the only traditional advertising media to experience real revenue growth over the next five years in Western Europe.
While the report is confined to forecasts for Western Europe, it is noteworthy because it illustrates the increasing prominence of digital signage networks as a legitimate advertising medium–good news for marketers grappling to understand how best to take advantage of changing media usage patterns among consumers.
As technologies like DVRs encroach on traditional television viewing patterns, more and more newspaper readers let their subscriptions lapse, and the public turns in ever greater numbers to the Web for news and entertainment, tried-and-true media strategies are becoming less effective. Marketers are being confronted with how best to reach potential buyers in a media environment that’s rapidly developing into something that’s far more active than passive, more user-centric and friendly than media-centered.
Digital out-of-home advertising on digital signage networks gives marketers the opportunity to reach potential customers at or very near the point they make their actual buying decisions without giving the shopper the opportunity to zap past their messaging or browse to something of their own liking. To the degree shoppers in a retail store are inclined to linger near racks or shelves of merchandise, for example, they become a captive audience–without a remote. To the degree commuters stand on a platform waiting for their subway train to arrive, they’re a captive audience–without a remote. To the degree those waiting for their cars to be repaired sit in a waiting room, they’re a captive audience–once again without a remote.
Not to belabor the point, but it should be clear that one of the key elements digital out-of-home advertising reintroduces into the marketer-audience equation is a significant amount of control. Certainly, it’s akin to the level of control over messaging in the traditional TV viewing experience. No marketer could force a viewer to watch an ad, but it took a little bit of effort on the part of a viewer to escape it.
Without question, digital out-of-home advertising on digital signage networks offer a number of other benefits, such as the ability to organize messaging around a desired or known demographic, the ability to quantify audiences and develop a cost-per-thousand or cost-per-million type of rate structure, the ability to daypart messaging and many others. But the fundamental advantage this form of advertising brings to marketers is an element of control and a degree of confidence that the viewers of their messaging won’t simply zap or browse away from their advertising.
David Little is a digital signage enthusiast with 20 years of experience helping professionals use technology to more effectively communicate their messages. Keywest Technology specializes in technology for digital signage. Visit www.keywesttechnology.com and expand your marketing horizons.
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