Digital Signage Forum, Digital Signage, Digital Signage Network, Digital Signage Product Reviews

Will it be common for us to be entertained or offered promotions and advertising while we are pumping gas (or some type of fuel) 5 or 10 years from now? While it is here now, it isn’t common. Will theaters display advertising delivered via Ethernet, specifically tailored to that community and to include regional and national ads? It is happening now, but, not common. There are scores of other examples that will likely go back to the same conclusion. As we look ahead two to five years and more, based on the trends we are seeing, we can expect that we will be increasingly entertained, informed, educated and persuaded by content from a variety of sources as we go through our daily routine as consumers. The networks that are uncommon now will become common shortly. This is all good for our industry and the potential for growth.

Will the market and the customer, allow this to happen? How much of an effect will DVRs have on television advertising? What market forces need to occur before what we consider now to be uncommon becomes common? And how will our industry, the players that now make up the field of the digital signage industry, evolve and eventually emerge?

The answers to those questions are likely to differ by each person asked in and out of the industry. But, if we look back on what made some of the original radio and television networks develop, we can see some similarities to the networks that are being developed today. Thanks to technology, there are some impressive differences allowing customized content delivered at lightening speed. It can be said that some of the same, or similar, brands (i.e. Tide, Coke) we are courting today to embrace the promise of digital signage, or at least advertise on digital signage networks, are ones that help build the original television networks.

As the first television networks were developed in the 30s and 40s, the network operators struggled through establishing technical standards. At the same time, they developed programming and advertising models designed to impact the audience and create a calculated response which would result in an increase in brand awareness and sales.

I don’t think it is too much of a stretch to say that digital signage is the next mass medium. It truly is more of an extension of the internet medium since IP technology is really the core delivery mechanism. And just like the web, digital media allows content to be more targeted, smart and interactive, unlike broadcast radio or television.

The market, over the course of the next 5-10 years could very well grow to include many more players, perhaps double, that currently exist in our industry. DS solution providers will increase numbers as multimedia service companies, traditional AV companies, sign companies and even catalogue companies expand their business. Every industry is looking for new growth opportunities as their traditional business matures. Conversely, while the industry grows to include more solution providers, we can expect to see continual consolidation and mergers as partnering and positioning allows these organizations greater flexibility and strength. At the moment, a small percentage of the market potential truly has been touched. A much larger portion of the market will look seriously at successful models over the next several years to determine if it is a fit for their organization.

BTV+ Media Solutions for Retail and Beyond 1 BTV+ Media Solutions for Retail and Beyond 2

But what needs to occur before a company determines digital signage is a fit? Will agencies come to the rescue? Will retailers see the value of the applied technology without agency intervention and work to develop a model in conjunction with solution providers? Will operations and marketing teams within the retailer bring in the whole thing while the CFO is on vacation? Or will it simply take the guy down the street to have it first to light a fire under their competition. As several companies have expressed to me in the past, "I will look at this when my competition is doing it."

It’s likely a combination of these things that will allow more and more networks to come to fruition. While the larger networks will eventually arrive, it will be the thousands of small networks that will grow our industry and continue to add more digital signage businesses into the mix and maintain the existing ones. These small networks can do a lot to help new digital signage solution providers get off the ground with the publicity that accompanies every successfully completed install. That free promotion and case study can go a long way for a DS company. Since a rule in digital signage is that every network is unique, these small networks are beneficial and almost always newsworthy. So with an arrival of new companies into the digital signage business every year, and ancillary businesses expanding their suite of services, we can expect not only more qualified, intelligent people to the party, but, good ideas, business models, unique products, etc. Competition is good.

We also know that for every network that exists, there is x number that died; sometimes a slow death, sometimes very fast. As the market develops with new businesses and new ideas, that mortality rate could actually remain the same, unfortunately. Rational thinking would lead us to believe that we, as a group, will eliminate the bad models and only keep what works. If it were only that easy.

The industry in a way reminds me of the baseball player with high expectations that takes a while to develop. Living in Michigan, the player that comes to mind is Kirk Gibson. He came to Detroit with Mickey Mantle expectations. And he did very well, as you know, including a couple of very memorable swings. As we look toward the future of Digital Signage, we certainly all have Mickey Mantle expectations. Development will take it little longer than expected. But, everyday there is good news of new networks launching indicating a strong foundation. As we look forward two, five, 10 years and more, the market is going to be very strong. Display and media processor technology will allow more versatility for screen placement resulting in more effective messages. Networks that we are not now considering will become reality as bandwidth increases, content creation and distribution becomes more web-flexible.

While centrally managed digital signage networks may take some time to develop - its place in media history is certain. In five years this will be pervasive. The writing is on the wall. Just as television became of age in the late 40s where corporations had to decide to either get on the band wagon, or wait until the wagon had less room, organizations today that need to embrace digital signage will be forced to whether they like it or not. Since the underlying technology for digital signage is the web or satellite -- the pace of innovation and change will enable digital signage sooner rather than later.

Rich Perry

US Sales Director

586-202-9622