Advertising Information

Author: Judy L. Hoffman

Many experts agree about the effectiveness of digital signage over more passive media and TV or radio outlets. As digital signage evolves, advertising revenue has become the focus in most deployments.

Recent years have seen hundreds of DSANs deployed, allowing digital ads to be seen while commuting to work, at work, during social events, while shopping, or when riding public transportation. Such advertising provides:

• Full color, animated graphics
• Fresh, current ads with up-to-date pricing and availability
• A customer experience
• Establishment of brand
• An influence in purchasing decisions
• An avenue to appeal to young and old consumers alike
• Proven effectiveness
• Directly relevant information to customers
• A point of consumer contact that is essential
• A way to change ingrained customer behavior

But oddly enough, DSANs are facing difficulties with their existence. Despite the obvious effectiveness of existing networks, such networks are struggling to find advertisers willing to buy space. Why?

One reason is that advertising networks can be costly to deploy and of course some of that cost is passed on to advertisers. But also advertisers are cautious about how they want to engage with this medium. There exists no real line item for this type of media within most marketing budgets and there is a lack of sufficient understanding of digital signage, how it works and the results it offers.

The majority of marketers make the mistake of planning digital signage advertising much like traditional media and there is a continued fragmentation of the media, creating complexity for media planners with confusion as to how to integrate digital signs with other emerging in-store technologies.

Overcoming such hesitancies is a challenge. Networks, media buyers, marketers and advertisers must be educated so that they gain a thorough understanding in how to leverage this new medium.

Five areas that should be clearly presented to media buyers, marketers, and advertisers are:

• Strategy or the Lack Thereof. The majority of retailers need to know what can and cannot be achieved with an in-store digital signage network. This includes defining success and failure, positioning brands and testing measuring techniques.
• Who Manages What? It is imperative to have a clear designation of who will manage the entire network, provide content, schedule the ads and manage the technology. Many times this requires multiple providers.
• Does It 'Fit In'? Digital signs need to 'fit in' with the dynamics of retail environments. They should not hit consumers in the face, but should be part of the décor and an asset to the shopping experience.
• Lack of Content Development. Retailers often fail to give much consideration to effective content or the budget needed to create and maintain a steady stream of good content. Also, effective digital signage requires fresh content with updated promotions, coupons, etc.
• Measuring with Inconsistencies. Traditional advertising measurement techniques do not work well with digital signage and standardized measurement techniques are not in place for digital signage ads. But with new technologies and efforts for standardization, measuring is becoming much reliable and "sellable".

With each passing year, digital signage networks should see an experiential change. This medium will find ways to better measure results and advertisers will become more comfortable and demand efficient, creative ways to approach customers at the point of sale or point of decision. And avoid the things that don't work. Be creative. Figure out ways to translate DSAN-talk into advertising-talk.

The next article in the series, "It's All About Content and Location" will look at importance of a screen's message, where that message appears within venues and the role these play in a DSAN's success.

About the Author

Judy L. Hoffman has freelanced marketing and public relations services for over 20 years serving a wide range of industries worldwide and, while working as PR Specialist at Noventri (www.noventri.com), has nurtured a keen interest in the digital world and the effects of digital signage in the field of marketing and public relations. Hoffman is a freelance writer and has been published in numerous trade journals, newspapers, and online publications. Hoffman holds a Bachelors in Marketing Management.