Digital Signage

Introduction

"Digital signage" is one of many similar terms used to describe a system that allows dynamic content and messages to be placed on electronic displays in out-of-home environments.  While some definitions -- particularly the one put forth by the Point of Purchase Advertising (POPAI) Digital Signage Standards Committee in 2006 -- specifically call for the screens to be remotely controlled over a network such as the Internet, many digital signage installations today use CDs or DVDs that are mailed out from a content publisher weekly or monthly, and are simply inserted into a local DVD player near each screen.

Digital signs can take many forms, including screens mounted on free-standing towers or hung from walls and ceilings, electronic displays integrated into supermarket end caps and aisle "price channels", and even electronic billboards attached to roadside towers or affixed to the sides of buildings (New York's Times Square is famous for their use of digital signs, for example).

How it works

Simple digital signage players may be little more than a DVD player or solid-state MPEG player connected to a television or monitor.  However, the majority of digital signage systems installed today favor a network-based implementation like the following:


Content is loaded into a centralized content management system (CMS), which may be located on a local desktop PC or server, or offered as a Software-as-a-Service (SaaS) solution by a 3rd party provider.  Once stored, the content can then be scheduled into playlists, which dictate when and where each piece of content should appear on screen.  These playlists, along with the content assets themselves, are then transferred over a network like a corporate VPN, local LAN, or the Internet, to digital media players, which translate the playlists into a series of playback commands, and send the appropriate content segments to screens connected by a VGA, DVI or HDMI link.  A more detailed explanation of the technology behind digital signs can be found on the digital signage software page.

Common Applications

Digital signs can be found employed in a wide array of applications in out-of-home environments, with advertising-oriented applications being some of the most common.  However, numerous non-advertising applications exist, and are accounting for a larger portion of the overall market size, particuarly as the cost of implementation decreases.  In fact, some studies suggest that non-advertising related network growth is outpacing advertising network growth by a rate of 1.5:1[1]  Common applications in the most popular vertical markets targeted by digital signage companies include:

• Retail

• Complement Point of Purchase (POP) displays
• Advertising products sold in-store
• Experiential marketing (such as improving the in-store environment/aesthetics)
• Back-room sales training and staff safety information display
  

Advantages over traditional static signage systems

Time- and place-specific message display

Like other kinds of in-store advertising, digital signage lets you deliver time- and place-specific messages.

Day-parting

Digital screens can be scheduled to show different content at different times of day or days of the week.  Thus, it would be possible, for example, to configure a screen at a cafe that shows rush hour traffic information and advertisements for breakfast sandwiches in the morning, but news and sports information with a menu of soup and sandwich options during the afternoon.

Dynamic information

Most digital signage systems can show a combination of still and moving images, video and “live” data (e.g. traffic or weather information, or data from a retail inventory system)

Remote control

Digital signs can typically be updated electronically over a network, thus eliminating the logistical issues and time delays associated with printing new signage and shipping it to destinations where it must be physically installed.

Compliance tracking

Most digital signage sytems keep a record of all information displayed on screen, including times and dates when each piece of information is shown.  This is particularly useful for advertisers who want to ensure that their spots are running at the appropriate date and time, but is also key for product marketers and merchandisers who need to ensure that information on the electronic displays corroborates with the special offers and non-digital promotional materials being distributed at the same time.

Current problems and limitations