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Digital Signage: Software, Networks, Advertising, and Displays a Primer for Understanding the Business

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Digital Signage: Software, Networks, Advertising, and Displays a Primer for Understanding the Business Digital Signage About the Series NAB EXECUTIVE TECHNOLOGY BRIEFINGS SERIES A series developed jointly between Focal Press and National Association of Broadcasters The NAB Executive Technology Briefing Series consist of titles addressing current and future industry technologies, authored by experienced and well-known pro- fessionals, often industry consultants, for managers and investors in the industry. Readers should have an introductory to an intermediate level of knowledge of the technology. The primary goals of each title in the series are as follows: ● Provide the reader with a working knowledge of the topic. Each title clearly explains the technology discussed, the end-result providing the reader with a general technical understanding to adequately converse with industry engi- neers and other technology professionals. ● Discusses the impact (past, present and future) that the technology had/has/ will have on the industry. This includes-but not limited to: financial impli- cations, human resource implications, how the technology will change the industry, competitive considerations, advertising/marketing considerations, legal/legislative ramifications. ● Identify investment opportunities in the industry. Each title outlines not only areas of opportunity but also the risks that may be involved. NAB Disclaimer The opinions, findings, and conclusions expressed in this publication are those of the author(s) alone, and not necessarily those of the National Association of Broadcasters. NAB EXECUTIVE TECHNOLOGY BRIEFINGS Digital Signage: Software, Networks, Advertising, and Displays A Primer for Understanding the Business Jimmy Schaeffler AMSTERDAM • BOSTON • HEIDELBERG • LONDON NEW YORK • OXFORD • PARIS • SAN DIEGO SAN FRANCISCO • SYDNEY • TOKYO Focal Press is an imprint of Elsevier Acquisitions Editor: Angelina Ward Assistant Editor: Katy Spencer Marketing Manager: Amanda Guest Developmental Editor: Beth Millett Publishing Services Manager: George Morrison Project Manager: Paul Gottehrer Design Direction: Joanne Blank Cover Design: Maria Mann Cover Images: ©Getty Images Focal Press is an imprint of Elsevier 30 Corporate Drive, Suite 400, Burlington, MA 01803, USA Linacre House, Jordan Hill, Oxford OX2 8DP, UK Copyright © 2008, Elsevier Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Permissions may be sought directly from Elsevier’s Science & Technology Rights Department in Oxford, UK: phone: (ϩ44) 1865 843830, fax: (ϩ44) 1865 853333, E-mail: [email protected]. You may also complete your request on-line via the Elsevier homepage (http://elsevier.com), by selecting “Support & Contact” then “Copyright and Permission” and then “Obtaining Permissions.” Library of Congress Cataloging-in-Publication Data Application submitted British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library. ISBN: 978-0-240-81041-6 For information on all Focal Press publications visit our website at www.books.elsevier.com 08 09 10 11 5 4 3 2 1 Printed in the United States of America This book is dedicated to my family. I especially highlight my friend, my wife, of nearly three decades, Diane, who has constantly spotlighted my talents, and con- sistently helped me to address my flaws. Thank you all, and for your help in “get- ting it done.” I sincerely hope you will share my excitement for all that digital signage will become. This page intentionally left blank Contents Acknowledgments xv About the Author xvii Executive Summary xviii Introduction xix Chapter 1 The Big Picture: An Overview of Digital Signage 1 What Is Digital Signage? 1 It’s Not TV 6 The Scope of Digital Signage 8 Core Opportunities and Challenges 12 Digital Signage Today 13 Purposes of Digital Signage 14 Commercial 15 Informational 15 Experiential 16 Behavioral 17 Screens or Displays 17 Scrolling Message Boards 18 Plasma Displays 18 LCDs 19 LED Displays 19 Electronic Billboards 19 Projection Screens 19 Round Screens and Images on Windows 19 Electronic Paper 21 Self-Illuminating Digital Paper 21 Hardware Infrastructure 21 Content 22 Distribution 23 Trends Propelling Digital Signage 24 vii viii Contents Digital Signage Stakeholders 25 Advertisers 25 Network Operators 25 Mobile, Interactive, Touch Screen, and RFID Technology Providers 26 ISP, Satellite, Cable, Telco, and Wireless Providers 26 Traditional Billboard Companies 26 Kiosk Providers 27 Flat-Panel Display Providers 27 System Contractors 27 Software Suppliers 28 Store Fixture Providers 28 Digital Printers 28 Audio/Visual Professionals 28 Buyers and Location Owners 28 Restaurateurs, Hospitality, and Entertainment 29 Retailers 29 Integrators 29 Banks and Financial Institutions 29 Transportation Hubs 30 Costs 30 Consumer Receptivity 31 2005 Arbitron Retail Study 32 2006 JC Decaux/TescoTV Study 33 The Future of Digital Signage 33 Chapter 2 What Is Digital Signage? 39 History 40 Early Usages 41 Successful Installations 42 Current Opportunities 43 Forms 43 Non-Commercial 45 Commercial 45 Technology 55 Software 58 Content On-Screen 58 Software Control System 59 Hardware 60 Installation 60 Contents ix Maintenance 61 Key Players 61 Audience 62 Stakeholders 62 Location Owners 63 Network Operators 63 Hardware and Software Providers 63 Distributors 63 Installation and Maintenance 64 Investors 64 Trends 64 Challenges 66 Implementation 66 Profitability (and Other Measures of Success) 67 Operations 67 Industry Adoption 67 Audience Receptivity 68 Opportunities 69 Chapter 3 What’s Driving Digital Signage? 71 Ten Key Reasons Drive the Success of Digital Signage 72 Return on Investment 72 Ad Solutions 72 Connectivity 73 Flexibility 73 Quality 73 Affordability 74 Manageability 74 Accessibility 75 Acceptability 75 Longevity 76 What’s Driving the Hardware? 76 Outdoor Signage 77 Indoor Signage 80 What’s Driving the Software? 83 Usage Is Driven by Where Digital Signage Is Used 83 Retail 84 Service 85 Travel 85 Educational 86 x Contents Events 87 Miscellaneous 95 Users: Who Uses Digital Signage Is Driving Its Success 95 Business Owners 95 Brand Marketers and Ad Agencies 96 Opportunities 97 Challenges 97 The Future Is Driving Digital Signage 99 Chapter 4 When and Where to Use Digital Signage? 101 Use 102 Display 103 Control 109 In-House Control 109 Outside Control 110 Chapter 5 Content 113 Understanding the Audience 114 Content Placement 125 Types of Content 128 Stills 128 Animation 129 Video 129 Data 131 Miscellaneous (Text, Objects, Logos, etc.) 132 Audio 132 Consumer Dwell Time 133 Future Content 134 Chapter 6 Who’s Right for Digital Signage? 137 The Basic Criteria 137 More Ingredients 138 Organizational Types 139 Ad Agencies and Their Clients 139 Retailers 144 Inside Ads 145 Broadcasters and Multichannel Providers 145 Corporate Users 148 Contents xi Government Users 148 Educational Users 149 Hospitality and Entertainment 150 Transportation 150 Taxis, Subways, Busses, and Trains 150 Airports 151 Health Services Providers 153 Houses of Worship 155 Miscellaneous 156 Chapter 7 Choosing a Digital Signage Configuration 157 Implementing a Turn-Key Solution 158 Building a System Piecemeal 162 Reliability 163 Factors for Success 164 Chapter 8 Business Models and Benefits 167 Return on Objectives 169 Return on Investment 169 Business Models 170 ROI Business Model #1: Content Developer and Owner Model 171 ROI Business Model #2: Leasing Advertising Space Model 174 ROI Business Model #3: Hybrid Model 179 Pilot Programs 181 Chapter 9 International Digital Signage 185 Asia 187 India 187 China 188 Japan 190 Taiwan 191 Philippines 193 Singapore 193 Malaysia 194 New Zealand 194 Europe 194 United Kingdom 195 xii Contents Germany 196 Switzerland 199 The Netherlands 199 Croatia 200 Russia 201 Elsewhere 202 Mexico 202 Brazil 203 Saudi Arabia 203 Africa 204 Chapter 10 Where and How to Start Considering Digital Signage? 205 Where to Start? 206 Stage 1: Project Beginning and Development 206 Goal Setting, Goal Determination, and a Development Plan 208 Development Plan 211 Assessing the Content 213 Assessing the Environment 213 Assessing the Technology 214 Stage 2: Pilot Program 214 Measurement 215 Stage 3: Future Growth 215 When to Start? 216 Chapter 11 The Future of Digital Signage 221 The Impact of Digital Signage 226 For Advertising Agencies 226 Future Developments 227 Future Locales 227 At Retail 228 In Education 230 In Other Venues 231 Specific Future Applications 234 RFID 235 Interactive 236 Business Projections 237 Return on Investment Models/Case Studies 238 Contents xiii Network Integration 238 Key Growth Factors 238 Appendix A: Directory of North American Digital Signage 241 Appendix B: Glossary 249 Index 263 This page intentionally left blank Acknowledgments Three people are key to the production of this book. The first two are the two peo- ple who worked with me to complete this book, and to complete it on time. They are Robb Hawkins and Chris Dempsey. Both, quite simply, worked extremely hard to help complete this project. I commend them both. Similarly, I owe much to Jeff Bixler of HughesNet, who became my early mentor and without whom this book’s quality would likely never have published. In addition, I am indebted to all those who provided case studies, which because of their efforts have become very important individual lessons within each chapter of this book. And finally, I commend
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