Digital Signage could soon be coming to a display screen near you. Imagine Google AdWords tied into a network of Internet-driven kiosk advertisements. Combined with RFID technology it might identify the items you are purchasing and offer coupons through a store display or in a checkout line. The Google patent Allocating Advertising Space In A Network of Displays describes the format in detail. Here is an excerpt…

“Advances in technology have created new advertising channels to promote products and services. One example of this is kiosk-type billboards typically located in retail outlets, such as shopping malls, airports, hotel lobbies, etc. In their simplest form these devices loop through a series of poster-type advertisements promoting, movies, products and/or retail outlets in proximity to the sign to induce specific customer behavior…The following description is intended to convey details involving systems and methods for managing a distributed advertising network of electronic billboards and allocating advertising space in this network based on the proximity of each billboard to categories of retail outlets.“ – Shumett Bluja. Google Patent Application: 20060287913. December 21, 2006.

Digital Signage is a form of advertising that delivers targeted messages to remote display billboards. Typically the billboards are LCD screens located in retail businesses. The message content is fed to the display using the internet, networked communications streams, or private, closed information channels. The presentation might be advertisements or a mixture of information and other entertainment media containing text and video, with or without audio.

The term Narrowcasting is used in Europe rather than Digital Signage. The UK is also home to the independent trade organization The Screen Association that is developing recommendations and proposing regulations for the emerging signage trade. The Screen Association is working with other groups such as POSTAR, IPA, and OAA to design and implement industry standards.

The challenge is to create identifiable advertising media to deliver content that customers and potential buyers find informative and entertaining. At present Digital Signage is perceived as useful for checkout lines and waiting rooms, or in locations where it might be a welcome diversion. Digital Signage has elements similar to both television commercials and poster graphics used for announcements. But Digital Signage has a far greater potential for targeted delivery.

Impact studies to assess the effectiveness of Digital Signage have not yet determined its bottom-line value, so ROI is difficult to calculate and predict. Issues related to licensing and trade regulations need to be taken into consideration. Issues related to the distribution rights infrastructure and digital assets management are also being discussed and addressed.

Current systems such as OnSpot Digital Advertising use push-based content scheduling, and are distributed using IP broadband networks like existing satellite and DSL. Targeting can be national, regional, or even down to the local level, so special interest groups can display offerings in a single location. A typical program will display national advertisements, local advertising, and single location announcements in a loop. Studies by OnSpot indicate that twice as many people are able to recall brands seen on digital advertising as compared to television. How much of that recall is due to the novelty and newness of the media is not known (Arbitron Report on OnSpot Digital Advertising). In one study at Roosevelt Mall, the 12-17 year-age group was most likely to notice the new signage displays, and responded most favorably to their content.

Future trends include the use of RFID to trigger targeted information when a customer possessing a particular product is nearby. The radio tag can be used to identify the product model, causing information related to that product to appear, or to display other products that may be of interest.

References

Arbitron Report On Digital Signage
http://www.simon.com/arbitron/OnSpotDigitalAdvertising-ArbitronReport.pdf

Digital Signage Today
http://www.digitalsignagetoday.com/

The Screen Association
http://www.thescreen.org/

Wirespring
http://www.wirespring.com/

Tags: advertising, digital signage, narrowcasting