Lyle Bunn is an independent analyst, advisor and educator providing digital place-based media subject matter expertise to end user and providers. He has published more than 300 articles, whitepapers and ‘how to’ guides and trained over 10,000 professionals. See www.LyleBunn.com for more information and downloadable resources.
Story: Lyle Bunn
The InfoComm15 exhibition in June reflected a new reality: whether it is patron, shopper, traveller, staff or student communications, the opportunity cost of not using digital signage is outpacing its technology and operational costs. In other words, not using digital signage is costing more than its application.
This reflects a new tipping point. This ‘opportunity cost’ tipping point has been brought about by improved price/performance of the medium and the ways that it is being applied to address a vast range of communications needs — admittedly, it’s hardly new news to informed end users that the ability to brand, influence and improve the ambience and vitality of an environment can be achieved simultaneously though appropriate use of dynamic digital place-based messaging and engagement.
Three realities underpin the ongoing acceleration of digital signage use: investment, processes and technologies are all advancing.
INVESTMENT
Better integration into the environment and into engagement scenarios is driving the installation of 2 million new flat panel displays annually in North America. ‘Visual’ is acknowledged as our new language, and organisations not using digital signage are seen as old and outdated. Millennials, digital natives and progressive adults expect modern, innovative communications approaches.
‘Owned’ media in the Paid‐Owned‐Earned media model is experiencing high growth because it offers brand control and attributable Return on Investment (ROI).
‘Cause and Effect’ are the core value proposition of place‐based digital signage. Tangible, measurable ROI are well proven from the use of the medium, and even less tangible Return on Objectives (ROO), which assigns value to benefits not easily measured, or not worth the investment to assign value, make the investment decision easier than ever. Investment improvement is realised as communications objectives are clarified and expanded to reflect the inherent capabilities of the medium.
PROCESSES ADVANCING
Digital signage is focused on achieving objectives and manifestations of it are appearing in every branch/store of future designs. Delivering relevant messages to targeted audiences in well-defined dayparts are incrementally improving.
If digital signage projects were people, the good news is that the mortuary and cemeteries would not be very busy. Rarely do projects die and when their demise does occur, the causes are typically obvious and acute, much like a car being T‐boned by a train. The ‘train’ is always the same question, “How does this investment benefit us?” Its answer represents a fork in the road toward increased or decreased investment. What we do see in digital signage projects are akin to chronic care living where assistance and attention are needed to meet basic life functions. Quality of life is poor and most actions are a struggle. Many digital signage installations still lack vitality and exhibit little excitement in their messaging or for the brand. They are just getting by — existing on the minimal care provided. Some displays are dark; content is stale, irrelevant or boring, and the displays, as a communications device, are at times not appearing to be part of the multi‐channel or omni-channel experience. Such installations are the living dead or the walking wounded, making their way to that fork in the road.
So how can this story end well? Just as human beings get onto a nutritional exercise and social regime that increases quality of life, digital signage must create the answer to the question, “How does this investment benefit us?” And the obvious follow up question, “How do we generate more value?
An objective review of processes and outcomes along with a revisiting of objectives can be undertaken with external, objective expertise, the great value of which is fresh eyes and the bringing of perspectives from other projects at a range of stages.
TECHNOLOGY
The gap between consumer and commercial grade pricing of technologies is narrowing. Shipments of ultra-thin bezel displays are up 31% in 2015 to 558,000 units according to research provider HST. This is especially good news for video wall applications. A 2014 survey of end users by DigitalSignageToday.com indicated that about 50% of displays deployed are designated as consumer grade. In making its 22 announcements during InfoComm15, LG Electronics indicated that this percentage might be much higher.
The threshold of the $250 media player/embedded software was announced at InfoComm by several well‐known providers. Several are now including player health monitoring in their offering. A welcome improvement where problems at the tier 1 and 2 levels can often be resolved before a site visit is required.
The supply chain for technologies is expanding. As AV‐IT integrators added significant industry supply capability starting in about 2005-6, and static sign and digital graphics providers added digital signage to their offerings starting in 2008‐9. More recently the providers of security products have started to embrace digital signage offerings. Distributors continue to expand their line card including ADI Global, a Honeywell company that is the largest security technology distributor in North America.
ACTION PLAN
So what is the action plan in moving forward? System objectives and goals must be constantly updated and refined. The ‘walking wounded’ of digital signage are a huge opportunity for increased value. Just as during home renovation, the homeowner is well advised to call upon expertise in electrical, plumbing and carpentry, so it is with digital signage, that last 25% of the effort by subject matter experts can take the project to whole new levels. Such objective expertise is available. Yes, the product provider will declare that “anyone can do it”, but the difficult or dangerous parts are best provided by specialist capability.
Defining objectives, deciding on the content required to achieve those objectives and then determining what technology infrastructure will most cost effectively present the content to achieve the objectives is the key formula.
Audiovisual and technology integrators must refresh their awareness of technology products, since these have advanced considerably since their initial determination of what they will offer. The addition of new points of supply to end users, including security system, point-of-sale systems and architects is expanding sourcing options, which compels every provider to be at their best or suffer higher costs of business development.
Since the ‘play’ is viewer engagement, end users are compelled to use analytics for process (ie. content) improvement and to better integrate the use of real‐time or near real‐time data visualisation. The growing mountain of operational data presents the potential for even better viewer targeting and the achievement of intended or possible outcomes.
InfoComm15 was a high watermark for digital signage, and like other conference and trade show events points to how digital signage is evolving. The opportunity cost now exceeds the cost of the medium.