Measuring Digital Signage ROI with SMS Mobile Integration.

Much like Kip of the famed Napoleon Dynamite film, “I love technology…always and forever.” I also love how it makes life easier, more interesting, and more fun. Of late, I’ve been working feverishly on a project I believe will revolutionize two distinct and separate industries: digital signage and SMS text marketing. The revolution will not come fast enough in my mind. The integration of SMS text and Bluetooth marketing along with digital signage may well become the most synergistic and symbiotic relationship in the future of participative advertising—literally a match made in heaven.

Digital Signage Traditional signage has not been dynamic, while digital signage has not been affordable, until recently. With the decrease in prices of plasma, LCD, and projection displays the digital signage industry has literally exploded. In fact, Isuppli/Stanford Resources reported that the worldwide retail signage market which was $501 million in 2003 will have a growth of 29 percent CAGR to $2.35 billion in 2009.

As an industry in the growth stage, digital signage firms will be scrambling over the next couple of years to gain digital “real estate.” Keith Kelsen, CEO of digital signage firm, MediaTile put the state of the industry quite succinctly,

Real Estate is where the displays are placed. Whether in airports and public spaces, at the retail shelf, in a hotel lobby, outdoors, or in a veterinarian clinic, real estate is the key. Right now, there is a race to capture as much real estate as possible. Once the screens are installed, that venue is tied up and the likelihood of changing technology, hardware and the operator is minimal. To secure real estate you need a strategy, a business model and some capital. There are many different models to make this work; from no charge to the holder of the real estate, to share in the profits, to share in the time on screen. The rules are going to change according to the type of network you are putting in. The fastest way to get there is to do the pilots with real advertisers.

Shortly, the real estate will be tied-up, players will be squeezed out, and the growth will subside, but for now there is literally a knock-down-drag-out battle for market share.

The Digital Signage Problem Currently, the signage industry has some issues. I’ll name just a few:

1. Fragmentation: the industry itself has little congruency. This is true of many industries which are growing. It’s a race where only the fit survive through the fray. Casualties may occur, some buyouts, but in the end fewer firms will stand than do today.
2. Uniformity: software and hardware. This comes from the barrage of companies with the multitude of platforms. Again, this problem is present mostly due to the initial fragmented market.
3. Reinvention: many companies do not utilize operating systems already established and are utilizing vast amounts of resources reinventing wheels that could be utilized through existing applications. Again, this is partly due to the fragmentation.
4. ROI Calculation: This is perhaps the most difficult, but important aspect of any advertising campaign. Internet campaigns through organic search as well as PPC have the ability of giving very precise ROI numbers, an aspect of internet marketing which advertisers absolutely love. Not only do they love it, but now they demand it, which is why some companies have searched for unique ways to calculate digital signage ROI. This still remains difficult, however. Impressions don’t talk, cash does. And, until the signage industry is able to put more precise numbers on effectiveness, they will be handicapped by incumbent advertising mediums.

So, there are some issues. Wherever there’s a problem, there’s usually a solution. Wherever there’s a need for a solution there’s an opportunity. I’ll discuss the solution in depth further.

SMS Text Advertising Before we talk about solving some of the headaches of the digital signage industry, let’s talk a bit about text message marketing. First off, I would like to just comment on the opportunity of marketing via text messaging. I mean, they’re right in people pockets, purses, and cars. We are an always-connected society. I know I often wonder, “how did I get along without this thing?”

Advertising via text messaging has been on the minds of countless advertisers, and many SMS companies have jumped at the opportunity over the last couple of years, including the major online search engines. Dot mobi domain names are now even an option for the marketer looking to break into the on-the-go consumer. SMS advertising: powerful? Yes. Prominent? No, at least not yet. The market itself is in a growth stage. Procuring of short codes for text message companies is on the rise. In addition, it too is still growing. Text message marketing grossed over $80 billion in 2006 and well surpassed $100 billion in 2007. I dare anyone to argue with me about the great opportunity of text message marketing. Seriously, it’s powerful. Now let’s look at the two-edged sword…

The SMS Text Advertising Problem Text message marketing may be powerful, but because it’s so personal it can also be a great hindrance if used incorrectly or frivolously. For instance, advertising to persons via text without the prior expectation of the individual can be annoying. There’s also the possibility of spamming to mobile devices—a thought that personally makes me annoyed just thinking about it. I hate spam emails. In addition, opt-in texting services can easily become lackluster as persons glean information from other sources.

So, the question is how do we make people want ads?

How do we make people want to gain and receive SMS text messages?

In short, can we make SMS text advertising viral?

Can we make it interactively viral?

The Marriage Integration Let’s get down to the nitty gritty. Let’s make digital signage interactive. Let’s make digital signage viral. Let’s do it by integrating SMS with digital signage. Giving consumers the ability to play games, send texts directly to signage screens, and interact with signage via their mobile device is a great way for ROI to be measured. It’s perfect: SMS integrated with digital signage. It truly is the missing link in digital advertising. Every text sent by a consumer will prompt a response advertising text ad sent to the consumer’s mobile device. It’s a tit-for-tat strategy. No spamming, no SMS text opt-in required. People text because they want to, they are advertised to because they expect it. It’s that simple.

Much like Pay-Per-Click (PPC), Pay-Per-Text (PPT) campaigns give advertisers the ability to

1. Choose specific demographics (including locale, age, and gender)
2. Pick message keywords from messages Tagged to screens
3. Pick an advertising budget on a daily, weekly, and/or monthly basis

It’s a match made in heaven. Not only do we solve the text message marketing dilemma but the digital signage ROI calculation conundrum (say that ten times fast) is also solved.

Nate Nead