Posts Tagged ‘Digital Signage’

Developing Standards in Digital Signage

Wednesday, March 9th, 2011

Last week, we briefly touched on the importance of developing standards in the digital signage industry.  Let’s elaborate a little further on this.

Standardization, as we have seen in numerous other industries, helps drive down costs, creates common units of measurement, and increases adoption by smaller users.  For example, in the auto industry, before standardization, drivers had to relearn how to drive each time they got into a different car.  Some automakers insisted on using a brake lever on the steering wheel as others used pedals.  Some automakers place the accelerator pedal on the left while others placed it on the right.  Basically, each automaker placed items like the instrument cluster, gas tank, levers, pedals, etc. wherever it felt was appropriate.  Eventually, automakers realized the benefits of standardizing items like these; accelerator on the right, brake in the middle, and clutch on the left.  As a result, parts became more interchange across different models, instrument clusters adopted common units of measurement, and people started to purchase cars by the millions.

To a large extent, this is the standardization that the digital signage industry needs. The technology providers in the industry are using so many different platforms that it is causing a compatibility nightmare.  Furthermore, there is a lack of standards in areas such as basic media capabilities and audience measurement.  This limits the adoption of digital signage by smaller users, such as local grocery stores and coffee shops, and makes large media buys more difficult to complete.  Recently, technology manufacturers such as Intel, HP, Microsoft and others are beginning to work together to develop a coherent set of technology standards.  This is good.  A set of standards will lead to the development of standalone signage solution and will allow software developers to focus on content and innovation rather than figuring out if their solutions work on a specific platform.  Lastly, given today’s connected consumer, standards will make digital signage integration with other forms of media easier.  A smarter and more connected digital signage is beginning to take shape.

Digital Signage: Values, Standards, and Integration

Monday, February 28th, 2011

As the Digital Signage Expo 2011 concludes, I want to share my outlook on the industry.  According to a recent study, estimates show that more people now watch videos on digital signs than on Internet sites such as Facebook.[1] The events at the recent DSE only confirm the expansion of the digital signage industry.  To capitalize on this expanding market, industry players need to focus on a few key factors:  value proposition, standardization, and integration.

Value Proposition

While many in the media-buying world are already invested in the digital signage market, there are still quite a few who are not convinced.  We talk a lot about metrics and proof of concept as a proxy for value.  This is good but we also need to show that digital signage is not confine to the conventional media business value proposition.  The advancements in digital signage technology, such as Intel’s AIM Suite, gives industry players the ability to solve problems for brands and customers.  Digital signage is not just about selling features.  It is also about selling solutions.

Standards are Critical

Another key factor in the expansion of the digital signage industry is the development of standards.  Standardization, as we have seen in numerous other industries, helps drive down costs, creates common units of measurement, and increases appeal to smaller users.  Furthermore, standardization allows industry players to focus on innovation rather than on platform capability.  As a result, standardization drives the reach of digital signage, simplify metrics for media-buys, and assist in the development of integrated solutions.

Integration

We have talked about how today’s consumer are more active than ever.  Mobility, interactivity, and social networks are transforming consumer behavior.  Brands have to deliver a consistent sales and service experience to wherever the consumer may be.  Digital signage will play an important role in this.  Take the recently unveiled “The Connected Store” by Intel.  “The Connected Store” creates a retail environment where digital signage interacts with mobile devices, social media, and all their ancillary capabilities to achieve the personalized experience that consumers demand.

As standards emerge and integration takes place, the digital signage industry will continue to make its strong case for the most valuable ad delivery infrastructure.


[1] NSR Analysis 5/09 & 2012-2015 Intel Estimates