There are many of you who, as I can tell from our analytics data, have been regularly checking to see what is going on with digitalsignage.com. We must apologize for the delay, but good things are coming in 2009. An official press release will share the coming site with its associated features. The new features will bring tools to all within the industry to help give information and updates of specific events, companies, and technologies. Happy 2009 everyone as we prepare for the launch of digitalsignage.com in the near future!

Nate Nead

Product lifecycles may seems fickle, but they are often predictable. Contrast that with the rise and fall of specific animal species. Consider for a moment the Dodo bird. It was virtually categorized for extinction. As a species, the DoDo was an ecologically naive, bland tasting bird, but was an easy catch for sailors who were hungry. Similarly, digital signage can eventually become a digital Dodo if it's not careful.

Signage Morphology

We've seen the emergence of a new digital age. The last 20 years have taken us from CRT televisions with their huge footprints and poor quality to HD, BluRay, and myriad of other devices that give the digital steak a more seasoned sizzle. We've also seen communication go from POTS (plain old telephone service) to pockets, where individuals can be reached at the drop of the hat at anytime and in any location worldwide through a cellular device. The costs of these devices has also significantly dropped as well, allowing for more broad acceptance of once untouchable units. Do you remember when a Plasma television cost between $10-15K?

The self-service kiosk world helped to spawn digital signage out of the funk-laden primordial swamp--a swamp originally dominated by static banner signage. As static signage becomes all but extinct in coming years, digital will also--of necessity-- evolve into a different beast. Perhaps digital out-of-home will take on several different shapes as technologies diverge and converge in various ways. Personally, I think we'll see more of the latter than the former. With new applications exuding themselves from the creative minds of digital signage developers, we'll see PDAs, mobile phones, kiosks, digital signage, and RFID come together to create customer experiences like never before.

A more specific trait I see emerging from digital signage morphogenesis is the use of touchscreen applications. In the future, we'll see many more self-help, large format digital displays come down from their high places on the walls to chest level. These displays will be integrated with interactive capabilities and allow for information dissemination to an audience who will be used to taking control of what they see and hear. Digital juke boxes, interactive video walls, video games, and handheld devices will allow the user to choose, within certain perameters, what will be displayed, heard, felt, smelled, and even tasted.

3M certainly hit the proverbial nail on the head with the development of Dispersive Signal Technology (DST) for large-format touchscreen applications. As consumers continue to demand to have control put back in their corner, we'll see touchscreens implemented in part or whole as digital signage applications rollout.

What do you see the industry moving toward?

In their 2007 publication, "Lighting up the Aisle", industry consultant experts, Laura Davis-Taylor and Adrian Weidman refer to the choices between digital signage business models as correlated directly with the following key factors:

1. How much you want to control it

2. How much you want to spend

3. Your appetite for risk

At first glance, it sounded to me like they were asking for a "level of committment." How often do you receive a lead for a digital signage project where there is no budget and, even worse, no investors in the project itself? It is not ironic to me that these inquiries come across my desk regularly. From my perspective Ms. Davis-Taylor and Mr. Weidman are asking for the following:

How much time you want to spend?

How much money you want to spend?

And how much sleep do you want to spend?

For fully funded, company-backed deployments, risk, money, and control will be spread over the corporation. This is the suggested and optimal route, but for those seeking to implement a home-grown ad supported digital signage network, this post may be helpful. This post will address the issue of the advertising supported digital signage revenue model. In doing so, we'll hope to answer the following questions ourselves: How does an ad supported signage network work? Or does it work at all? What are some different types of ad supported digital signage networks? Which type seems to work the best? Are there any current successful examples of an ad supported network? What are some of the benefits of an advertising supported digital signage network? What are some downfalls of this revenue model?

All the preceding questions will be answered and discussed throughout. In my mind, understanding the detailed "heretofores" and "theretofores" involved in creating a network based solely on ad revenues is somewhat of a daunting task. In doing so, I think it will be very wise to discuss the "morphology" of an ad supported network.

Types of Digital Signage Networks Supported by Advertising

1. External Model

In this model a host venue agrees to have digital signage. End of story. 100% of displayed content does not benefit the host venue. Has anyone witenessed a deployment like this? More importantly, if such a backwards way of thinking does exist, could it possibly work? I'm sure if software and hardware were free, then it might work. In the real world, this is a unicorn of an idea.

Such a system would only benefit the owner or operator of the screen, not the venue itself. In my mind the only controlling power given to a host venue in such a situation would be "veto" power for content they did not want displayed. It would appear as a private digital sigage network, in another public location not owned by the operating company. I know that sounds weird to say, but it could exist. While we're on ficticious ideas, I should reiterate that we're speaking of ad supported networks. This would make a 100% external ad supported model seem even more insane.

2. Owner/Advertiser Hybrid Model A shared spaces network involves several players: signage network operator, digital signage host venue, external advertisers, and media buyers. Hybrid digital signage networks are almost diametrically opposed on a local vs. national level. In order to understand how different they are, we'll discuss both in some detail. National Leasing Model In the case of a national network, media buying agencies provide the fuel to keep the network alive and well. Jimmy Schaeffler puts it this way, "The 'Leasing Advertising Space' business model, involves the controlling stakeholder looking outside, to others, to add additional content and, in turn, help pay for the posting of that content. This can be a symbiotic relationshipo that assists both the controlling stakeholder, as well as the advertisers and/or their clients. Advertisers looking to reach larger audiences in places like travel centers, malls, and event arenas are particularly attracted to this model...The consumer is at the top of the chain, because the consumer is still the most important party in the overall system, in that his or her response governs what the advertiser and its client are ultimately willing to do toward less or more spending using this model" ("Digital Signage," Shaeffler, pg. 175).

Unlike the local network, national digital signage corporations go through a media buying agency for sale of advertising spots on their network. In this way, respect for individual players' core competencies is maintained and media buyers can better connect with key individuals for such a buy to be implemented. Local Advertising Swap Model I've been approached and had discussions with numerous individuals who, in excited frenzy of the emerging multi-billion dollar industry, wish start and operate their own digital signage network. Often, "the greatest plans of mice and men often go awry." One must be careful not to jump to conclusions. Before we discuss such conclusions, let's do a little discovery into different types of "shared spaces digital signage networks."

In some cases, the players involved can wear more than one hat. For instance, some network operators entice venues by promising "ad swapping" on the network. In the case of a local network, a venue would be able to advertise at the barber shop, dentist, lube center, and doughnut shop in exchange for having the barber's, dentist's, lube center's, and doughnut shop's ads on their screen as well. I've never liked this model. I know there are numerous local networks currently operating under this guise, but many were struggling before economics threw another wrench at the cogs. Why is this alerting? Many companies have worked hard to build a strong, heavily branded, local businesses. Mucking that up with other local companies ads is not appealing to some. In fact, many local companies often feel a resentment toward "swapping" ad spots.

Requirements and Specific Issues On either a local or national level, there are several prerequisites for a shared ad model to succeed. First, consumers have to react. In other words, the digital signage advertising has to be useful and effective. If not, consumers won't create sales lift. In turn, advertisers will not want to purchase. It's that simple. Let me put it another way, consumer responsiveness governs all. Let's say it again for emphasis: consumer responsiveness governs all. It doesn't matter if the ad rolled 400 times an hour on a network of 5,000 screens. If it didn't do jack, then the model is a flop (a little caviat here: something like that would never happen). Second and finally, any digital signage network who wishes to sell a significant amount of theoretical "space" needs to own space available for sale. This means you need advertising space and advertisers waiting with their billfolds open. National networks with a significant footprint can, much more easily, vie for the eyes and ears of large media buying companies who wish to purchase spots.

For the local network, obtaining the space is sometimes difficult. Because the model I've been discussing morphs venue hosts and advertisers into a "catch-all" category, the model becomes much more complex. Because "screensharing" is taking place, conflict may arise. For instance, five dental offices working solely as the hosts would not only not work, but is a sure fire way to rethink your model very abruptly. Finally,

3. Internal Model

An internal ad-funded digital signage network model is nearly 100% synonymous with that of the private label digital signage network model. This type of model has also been referred to as the owner model of the manager model. The internal ad-based model does not gain revenue from advertisers themselves, but is in the business of internal branding and targeting customers at the point-of-sale within the confines of their own established place of business. For more information on the internal model, please see the related post entitled: Private Owner Network Digital Signage Business Model.

Where's the Cash?

In order to completely understand the model, one must understand and know with a certainty where the flow of money is taking place. And, most importantly, does the cash influx make up for--and hopefully--exceed the outflow.

$$$ Out When all the resources necessary are given full sway in a digital signage installment, I believe many would be a bit less hesitant about "jumping in" with both feet into the digital signage market, especially with an ad-supported business model as their means of generating revenue. Consider for a moment the shear cost of a single deployment: hardware (mount, screen, wiring, media player, etc.), software, and installation fees only amount for a portion of the cost. Consider hosting fees under a digital signage SaaS model or general connectivity fees if an internet wireless card were needed for regular uploads of dynamic content. Recurring costs can sometimes even trump an initial deployment costs, which is almost always the case in the aggregate. Then, there are the maintenance costs and content creation fees. I could go on and on. The question is, who is going to pay for all this?

Theoretically, the ad-based model, as the name implies, assumes a third-party ad supplier will front the deployment and recurring expenses. Again, in theory, both the ad supplier and the network manager will benefit with increased ROI from such an investment of technological capital. Rest assured, some methods must be considered for effective ROI measurement of digital signage networks for this model to work well. The standards may be codified, but generalized effective methods of measurement are still not to the coveted "Minority Report" levels yet. $$$ In Sure, we may understand our costs down to the penny. We may also be fully aware of who will be covering the cost of our digital signage deployment.  in them In general, because the network operator and screen venue are separate entities (not in all cases, but generally), any advertising revenues gained through on-screen media buys must be divided in some form between network operator and whoever is hosting the screen itself. This alone can become a very complex system of percentage agreements, proof of play reports, and precise audience measurement methods. At any rate, there needs to be some sort of agreeable method of divied shares between managers and hosts. Once terms are agreed upon in this regard, what was the take home? Was it worth the time and effort for deployment? Or, could you have made more in stocks this year? (currently, this statement seems completely preposterous).

Problems

I've only delved into some of the crags of the perverbial digital signage iceberg. The business models have many different niches and nuances I've not even begun to mention. The real issue is money. Where is it coming from and where does it go after a network starts pulling it in, if it can pull it in. Do you currently have advertisers drooling to place content on your screens, willing to pay whatever it takes to have their spot go primetime during the restaurant's lunch hour? Most likely not. And, if not, maybe it's time to rethink the methods. In such a "chicken or egg" gamble, do you feel it wise to risk a high stakes race when reason, logic, and the failed experience of other networks is right in front of you? I'll let you answer the rhetoric.

In reference to smaller, localized networks, I do not wish to be overly critical. Some work. Mike Draghici of Seattle Digital Signage has, in my mind, done a fine job with a hybrid digital signage business model. Then again, they also have their own software solution. However, out of necessity, prudence warrants me voicing a loud opinion on the subject.

Benefits

While we've remained almost solely on a negative vein, I think discussing possible benefits of this model are absolutely necessary. Digital signage advertising is effective. The numbers continue to prove that fact. Branding, sales-lift, and an occassional call-to-action are some of the ways a venue as well as a digital signage advertiser can benefit. Increased ROI is definitely a possibility. The benefits can be seen by both the third party advertiser and the network operator if they are connected in a proper manner. The advertiser can see increased branding and increased ROI through calls-to-action, while the network manager reeps the benefits of a advertising revenue. It's a seemingly perfect marriage of ideals and goals, where both parties benefit in a symbiotic relationship. But, in my mind, such a perfect "digital signage universe" is a bit nonsensical and far-fetched.

However, those who are able to gain suitable advertisers can be successful. Indeed, some of the most successful signage networks to date have an annoying attention to details, including audience tracking, you've ever seen. This ensures that when they sell advertisements, they know eyeballs are getting pinged. Additionally, it should be noted that many of the most successful (and perhaps, the only successful) ad supported digital signage network had existing connections with advertisers, knew advertising sales, and/or were dilligent in gaining the LOIs etc. before the networks were installed. In summation, sell the sizzle not the steak and get advertisers before software and hardware is expended. Once completed, a nice residual income for the network operator will not only pay for a screen, but yield revenue on an ongoing basis.

Conclusion

Hopefully the forgoing questions were answered. I'm sure there's room for discussion, some will heartily disagree. In fact, I can think of several localized networks I've had discussions with that are doing great with their "citywide" digital signage networks. Of course, that was 8 months ago when words like "recession" were in reference to 1929. When the Lion's Share of local networks, whose model is based 100% off the assumption that, "once we have the chicken, it will lay for us a golden egg," fail, I find it difficult to look at the successful minority and be unflailingly optimistic. But perhaps I am a crackpot.

TriCaster by NewTek is a recently released hardware/software bundle for broadcasters that allows for streaming content creation by "anyone who can operate a computer." The signal can then be sent as a standard broadcast stream, or over the web. According to the Wired post:

The TriCaster is essentially a high-powered computer with special ports. Like other computers, it plugs into a display and it's operated using a mouse and keyboard. The onscreen interface resembles a traditional TV-studio switching console, but after a short tutorial, just about anyone can figure out how to switch between cameras, add graphics and so on. I saw how easy this was, and heard countless testimonials about high schoolers and church volunteers learning how to use it in a half hour.

"We had to take a process that normally has 5 to 30 people creating a show and make it easy enough for one person to run, [someone] who has never run a TV show before," explained Philips. Indeed, the TriCaster allows a single operator to mix multiple cameras (higher-end models support more cameras) interspersed with graphics, pre-recorded clips, real-time effects and more than 300 three-dimensional transitions. The box outputs to the web, television stations or big screens in churches and sporting arenas.

NewTek's entry-level TriCaster, with support for three cameras, costs $4,000. That may seem like a lot, but considering that it can be used in place of a mobile production vehicle, four grand is small potatoes, relatively speaking.

Digital signage applications abound for such a device. We get requests quite regularly, usually for school and worship applications, where multicast/broadcast is a requirement. This is also a huge breakthrough for the niche video broadcaster who wishes to do high-quality broadcasting on a small budget. It must be high quality if Fox Sports is using it, right?

Sometime ago, I completed two industry specific books. I've been meaning to address them on the blog, but have not, as yet, had the opportunity. The first was Jimmy Schaeffler's "Digital Signage: Software, Networks, Advertising, and Displays" as part of the executive technology briefings of the National Association of Broadcasters. My other recently completed work was "Lighting Up the Aisle: Principles and Practices for In-Store Digital Media" by Laura Davis-Taylor and Adrian Weidmann. Both books were informative in their own right and well worth the read if you would like to--as Mr. Schaeffler's title states--have a "Primer for Understanding the Business."

Since I am an information consuming whore, I do not believe that too much can be written or said about any topic out there. It just takes someone crazy or interested enough to soak it up like a dry sponge. I guess I resemble that description.

"Lighting Up the Aisle" was somewhat different than Jimmy Schaeffler's piece. It seemed to focus a bit more on deployment strategy and tactics, while Mr. Shaeffler's book seemed to have information that focused more on the overall industry. Because of their different focus, they were both extremely informative and well worth reading.

"Digital Signage" by Jimmy Schaeffler was intriguing because of the numerous case studies. Jimmy uses the case studies to drive home specific points about detailed advantages of the industry. It's like the old "Reading Rainbow" book showcases, "this is a great way to increases POP sales, but don't take my word for it!" Then there'll be a case study printed by a specific company which outlines the effectiveness of the specifically engineered build they used for a deployment project.  

I plan on writing full book reviews for both pieces sometime in the future. In fact, you can expect me to reference them as resources from time to time. Thank you to both Mr. Shaeffler and both Mr. Weidman and Ms. Davis-Taylor. There is always more to learn!

I want to reiterate Jimmy's final thoughts: the digital signage future is so bright, I've got wear shades.

This project hits a bit close to home for me. In a former life, I sold Clearwire services throughout the Seattle area as an owner of Ascent Marketing. Their service was great! In fact, I know Seattle Digital Signage is currently using the Clearwire service in their Taxi Cab Digital Signage Network, installed in a majority of the city's taxis.

Recently Clearwire announced they'll be teaming with some of the largest telecom giants for a 4G internet deployment. In addition, they've received funding from quite a few sources as well:

Clearwire received the $3.2 billion investment from some of the most innovative communications, entertainment, and technology companies in the world, including: Comcast, Intel through Intel Capital, Time Warner Cable, Google, and Bright House Networks, and, as previously announced, will receive an additional investment from Trilogy Equity Partners in the coming months.

The opportunities here will benefit companies across the map for content and data delivery and exchange, digital signage being only one...

Full Clearwire press release.

Before we go into the whys, let’s first discuss the three tiers of digital display manufacturers:

Tier 1 -These companies design, manufacture and market their own HD displays. The companies should be familiar to you: Samsung, Panasonic, etc.

Tier 2 -Tier 2 includes known brands from established companies like Zenith (an LG company) or Magnavox (owned by Philips).

Tier 3 -Polariod, Vizio and TruTech are marketing companies who use outside vendors to build their display sets. Vizio is perhaps the most visible of the aforementioned companies.

Three Reasons to Avoid Tier 3 Brands

Reason 1: Price

The price gaps between the Tier 1 and Tier 3 brands have narrowed significantly in recent months (perhaps in part to some price fixing). In some cases, the price gap is down to $100 or less. This is not a significant enough gap to warrant saying, “look at all the money I’m saving by purchasing a crappy display.”

Reason 2: Quality

Tier 1 television companies own their own production facilities. This has several foreseeable benefits, only one of which is control over the entirety of the manufacturing process. Vizio, on the other hand, outsource for both the parts and the manufacturing. The Vizio displays are built under contract by factories in Taiwan, China, and Mexico.

Having outsourced manufacturing plants is not the only cause for concern with the Tier 3 display providers. Owners of the Tier 3 televisions (reported at HDGURU.com) say that products between the 14^th and 30^th month of ownership have suffered symptoms indicating failed power supply. This was particularly the case with the Vizio displays. And since one of the most expensive components of any display is the power supply, this is a high cause of concern. Perhaps Vizio is skimping on the quality of a power supply to cut manufacturing costs. Whatever the issue is here, it warrants concern from a digital signage network manager who would want a display to last in an “always on” mode.

Reason 3: Comparison

A recent evaluation of two of Vizio’s displays at Gizmodo indicated underperformance compared to a slightly higher priced Toshiba LCD display. The difference in performance was based on the panels. The Vizio television exhibited more visual noise interference and buried black detail on the display screen in a much greater fashion than did the comparable Tier 1 brands for 2008. This issue is somewhat reminiscent of plasma display’s performance from 3+ years ago. The tested LCDs also possessed a narrow viewing angle and purple cast in blacks when viewed off center.

Some suggest Vizio and other Tier 3 brands are perhaps purchasing older generation panels from old panel maker inventory, in part due to the fact that Vizio and other Tier 3s do not disclose where they are procuring their used panels.

Final Thoughts

Although the differences may seem somewhat insignificant, it’s something that can be easily remedied: don’t skimp on price and you won’t skimp on quality. However, since the price gap is quickly converging, it would seem the decision to purchase a Tier 1 LCD, especially for an industrial digital signage application, is obviously clear.

Below are excerpts of Vizio’s Latest One Year Limited Warranty (with bold highlights added by HD GURU). For the complete VIZIO warranty go to (Vizio):

“Labor

“During the one-year limited warranty period, VIZIO will provide, when needed, service labor to repair a manufacturing defect.  Repairs required on displays which are thirty (30) inches or larger will generally, but not always, be made “on-site” where the display is installed. However, the decision to perform and on-site repair is dependent upon the manufacturing defect and is at VIZIO’s option and sole discretion. Repairs required on displays which are less than thirty (30) inches generally will be performed at a Vizio service center.”

“Parts

Repairs may be made with new or recertified parts, or the entire unit may be replaced with a new or re-certified unit, at VIZIO’s option and sole discretion. Replacement parts or replacement units provided under the is limited warranty are warranted for the remaining portion of the original warranty or for ninety (90) days from warranty service or replacement, whichever is later.”

“MAIL-IN WARRANTY REPAIR PROCEDURE

Mail-In Warranty Repair generally is performed on displays which are smaller than thirty (30) inches.” “If VIZIO Technical Support determines that a problem with a display unit may be within the terms and conditions of the VIZIO Limited Product Warranty and that a Mail-In Repair may be performed, the customer will be provided with a return authorization number and mail-in repair instructions. Proof of purchase is required to confirm the product is within the one-year limited warranty period and meets the terms and conditions of the VIZIO Limited Product Warranty.”

“The customer will be provided with instructions for packing and shipping the unit to the VIZIO service center. The original carton box and packing material, or an equivalent as designated by VIZIO, must be utilized. The cost of shipping to VIZIO’s service center is at the customer’s expense. After the product is repaired and tested or replaced, VIZIO’s service center will ship the unit back to the customer at VIZIO’s expense. VIZIO is not responsible for the de-installation or re-installation of the product. Please read VIZIO’s Limited Product Warranty for warranty terms and conditions.”

“WARRANTY REPLACEMENT

WARRANTY REPLACEMENT PROCEDURE

If VIZIO Technical Support determines that a problem with a display unit may be within the terms and conditions of the VIZIO Limited Product Warranty and that replacement is the appropriate solution based on the type of manufacturing defects in materials and/or workmanship (at VIZIO’s sole discretion), the customer will be provided with a return authorization number and replacement instructions. Proof of purchase is required to confirm the product is within the one-year limited warranty period and meets the terms and conditions of the VIZIO Limited Product Warranty.”

“For displays thirty (30) inches and larger, VIZIO will generally cover the transportation charges to perform an exchange of the original unit with the replacement unit. For displays smaller than thirty (30) inches, the customer is responsible for the transportation charges to VIZIO’s service center. In either case, VIZIO will be responsible for the return transportation charges from the service center to the customer. Please read VIZIO’s Limited Product Warranty for warranty terms and conditions.”

According to a Vizio spokesperson, if Vizio decides to replace your unit as per the warranty,   VIZIO will, at its discretion, send you either a new or a “recertified” unit. Re-certified units are ones that are used, refurbished to VIZIO’s standards. The representative went on to inform me that VIZIO has supplied an independent parts distributors for warranty and post warranty parts access.

For comparison, the HD GURU checked out Toshiba’s HDTV warranty. Toshiba sells aggressively priced HDTVs designed to compete with Tier 3 HDTVs. Toshiba’s full US name is Toshiba America Consumer Products LLC (TACP). Here is an excerpt of its warranty. The complete Toshiba warranty for LCD Televisions 26” and larger can be found at (Warranty). Caps and bold are as printed by TACP.

Limited One (1) Year Warranty on Parts and Labor for LCD Televisions 26” and Larger

TACP warrants this LCD Television and its parts against defects in materials or workmanship for a period of one (1) year after the date of original retail purchase. DURING THIS PERIOD, TACP WILL AT TACP’S OPTION, REPAIR OR REPLACE A DEFECTIVE PART WITH A NEW OR REFRURBISHED PART WITHOUT CHARGE TO YOU FOR PARTS OR LABOR. During this period (boldface added by HD Guru), TACP Authorized Service Station personnel will come to your home when warranty service is required. Depending on the type of repair required, the service will either be performed in your home or the LCD Television will be taken to a TACP Authorized Service Station for repair and returned to your home at no cost to you.

The first time I heard the preceding question, it was in reference to sales. It was another way of saying, "make sure you get some small sales to keep the wolf away from the door, before you go after the large sales." The idea works, especially for local networks. It's much easier to sell the local grocer than it may be to sell Coke or Nike.

Local, small networks are great. Don't get me wrong, national networks are great as well. They allow for a broad reach and general case study reports for larger demographics. Local networks often take more TLC. They spend a bit more time making sure they've got the proper digital signage metrics, that the advertisers are happy, and that their network is functioning at capacity. This is the case because they have much more control of the process from start to finish. How many have seen a poorly installed screen at some national food chain (I'm won't mention network names or names of the particular food chain). Such an example is oftentimes the direct result of massive installs with little micromanagement. This type of model is not incorrect, but merely a different approach for network outlay.

In relation to advertising vs. network it's always the question of the chicken vs. the egg. Will the advertisers come once I have the network in place? Don't count on it. When it comes to outlaying several thousand clams per location for hardware and software, you had better have a modus operandi for covering costs. And, if you don't have the advertisers already convinced, it's going to be a sore hurt when the payments come due.

If it's a pie-in-the-sky network you're looking at establishing, it may be wise (unless you've $5 million in start-up capital), to hold off on a huge deployment until you have some way of covering costs.

Now, it's back to the original question: elephants or rabbits? You may be tempted to take what you can get. This is not always wise in advertising sales-or any sales for that matter. You must find your sweet spot and target it. Don't take a shotgun out and go out looking for rabbits in Africa (but secretly in your mind, you want an elephant). It's not going to happen that way.

When making the advertising sales there are two things to consider. Who am I targeting? And, who responds best to my solicitation? The answer to the first question may change based on the answer to question two. Either way, honing in a target niche and milking every last drop out of that niche is the area you want to be-at least initially. Once you've had your experience shooting some rabbits, it may be time to go after a bear or an elephant. In my experience, when you've proved yourself as an accomplished rabbit hunter, the elephants knock on your door.

For more information on digital signage networks, please visit our posts outlining the following:

• Advertising Supported Digital Signage Networks Business Model

• Private Label Digital Signage Network Business Model

A recent MarketingCharts report showed “outdoor” (of which digital signage is a part), commands a minute 1.9% of total market penetration, but is expected to have a CAGR in excess of 22% in the coming year.

This does not compare to the growth we’ve seen in online search which is still growing at 24% from $13.8 billion. Nor does it compare to online video (CAGR of 45%) or online social media (with CAGR of 142% last year and an expected 37% CAGR for 2009). Still, it remains to be seen. With China leading the way in digital out-of-home, it may be an excellent laboratory for a broader U.S. acceptance of the industry as a viable advertising source.

Still, with so many MORE forms to choose from when picking an advertising budget, there’s never going to be a “one size fits all” ad solution. I recently read the Magna Emerging Media forecast for July 2008 which gave a very interesting fact: “Larger advertisers drive TV, smaller advertisers drive online.” It then gave several charts outlining the numbers to prove the statement.

The reason, in my mind, why this is the case is due to the fact that mass advertisers for large corporations can easily penetrate 90% via television. Internet, on the other hand, only reaches about 70% in the United States. Although the reach may be less for the online sector, the ads are much more targeted and honed.

The usual smaller budgets of online advertisers mean they seek ways to target demographics much more specifically. Yes, I have a Facebook account. I use it to stay connected with friends and family. I was on there about a week ago and noticed an ad that was so targeted I just had to click on it, more out of curiosity. Alas, it worked, I was sucked in.

When spending advertising dollars, it just depends on what the end goal is. Each form is effective, but each affect in different ways. Sometimes even television has a call to action effectiveness. For instance, I remember some time ago, watching television with my brother at a party. We were both exhausted from a day of landscaping, vegging on the couch. A Dairy Queen commercial, with Blizzards on display, caught our attention. We looked over at each other, smiled, nodded and without a word, left the house, returning 20 minutes later with Blizzards in hand. Effective advertising at its finest.

What creates such rapid overall acceptance in some sectors, but a laggard, heels-dragging enthusiasm in others? It may be, in part, due to the ability to target more readily. I’ve read several articles of late by various authors in the industry advocating digital signage with consumer control. Claiming control is what consumers want when it comes to their media. It’s true isn’t it? How many of you that have some form of DVR would ever go to regular television?

As we move forward in advertising I believe we’ll not only have more control, but also much more integration of the forms of media. For instance IPTV will be replacing standard television sooner than we think, giving us almost complete control. We’re almost there aren’t we? How many of you have watched a full television program on your laptop or desktop computer?

What about internet, TV, out-of-home, and mobile all rolled into some sort of interactive experience? That’ll be the day. Until then, I’ll keep getting annoyed when I’m at my friends’ homes and I can’t skip commercials because they don’t have a DVR. That is, unless a Dairy Queen commercial pops up.

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.

Related Posts:

• How to integrate mobile marketing with digital signage.
• RFID Tags For Targeted Content Display on Digital Signage

In fact, the screen demands interactivity. Students interact by clapping, singing, and texting to the digital display. Professor Shiffman with the financial help of the IAC (owners of ask.com and TicketMaster) have successfully installed one of the world’s largest indoor video walls. It is created with 27 vertically oriented rear projectors linked into a single display running on Sypder software projected onto a rear projection translucent screen. Shiffman comments on the uniqueness of the experience:

"For the students it's just such a completely unique experience—it's unique for anybody, whether you're a grad student or a professional designer. Few people in the world have a chance to work on anything of this scale, and what's great is that I can say to them you can do whatever you want. You learn a ton about technically producing the work, and also what it means visually to work on that scale."

"I can't imagine that when IAC build that wall that they imagined performances on it with actors casting shadows behind the screen, so that's fantastic."

As part of NYU's Interactive Telecommunications Program, Shiffman is teaching a programming language called Processing (processing.org), which allows for various applications that fill up the screen, including music videos, data visualizations, and interactive video art. It’s a fairly simple programming language that allows for code to be turned into awesome graphics and visuals.

With over 6 million pixels, the display has some awesome capabilities. In fact, Mooshir Vahanvati has helped to create some slammin' interactive content, including a 120 foot long powerline with perched birds who will scatter when a microphone picks up sharp noises.

Shiffman is the author of "Most Pixels Ever" library for Processing. This programming allows for syncing of multiple displays seamlessly without any glitches or delays. It’s still amazing that the system can handle a 6 million pixel output.

The applications for the digital signage industry here are very obvious. In almost every industry, we rely on educational institutions to give us the latest and greatest in technology advancements. Thanks to NYU, we're moving forward here.

See the original post @Gizmodo.

Sometimes indecision is far more crippling than making the wrong decision. Choosing your digital signage business model is no exception. As a result, it is vital that due diligence is done in the "discovery" of your project to ensure you've settled upon the right modus operandi for deployment. However, this also must be done efficiently so as not to be crippled by the indecision that can often come from information overload that surrounds us today.

The four functions of a private label digital signage network:

1. Corporate Communications

Businesses worldwide spend billions of dollars every year on training expenses. Included in such expenses are costs for travel, accommodations, meals, entertainment, etc. Digital signage, as a corporate communications vehicle, can help such costs. By utilizing a multicasting system integrated with a corporate digital signage network, corporations can significantly alleviate the costs associated with training and communications within large, national, and international organizations. When viewed in this vein digital signage becomes more of a significant cost reduction, rather than a leaky boat whose survival depends on outside advertisements.

In a more specific case, the massive retailer JC Penny utilizes digital signage at its 1,100 locations in the U.S. and Puerto Rico as a means of providing communications, interactive distance learning, and training for its 150,000 employees. JC Penny found digital signage as a means of streamlining both time and cost variables by utilizing scheduled prerecorded content placed on Helius digital signage media players throughout their 1,100 locales. Helius allowed for on-demand content to be deployed for training purposes. The system also allowed for tracking of trainees' progress, score reporting, and completion progress. The JC Penny digital signage initiative helped to eliminate costs associated with training a massive audience on a large scale.

2. Branding

In store branding is not new. Static signage has performed this function for centuries. Dynamic digital signage captures audiences, especially with creative and compelling content. Effective branding in such an environment is easily accomplished. I think if I talk too much about branding I'm going to make myself queasy. It is sufficient to note that because digital signage creates in the mind of the consumer a cognitive recognition of a previously viewed advertisement, it's an effective method to be utilized for product branding purposes. 3. Point-of-Sale Spikes

Numerous reports abound giving credence to claim that digital signage produces a measureable sales-lift when effectively utilized. I've personally read instances ranging anywhere between a 1% and 20% sales-lift on a digital signage network. One percent may seem miniscule, and perhaps it is. This all depends on the economies of scale that could be had for a particular network. Think for instance what 1% of 1,000,000,000,000 might be. It's obviously quite a large sum (if you can't figure it out, don't read on--the math gets even more complex). It is plainly obvious that such a small percentage increase, although seemingly insignificant, may prove immensely important when large numbers are involved. With large scalability involved it may be weeks vs. months to see a breakeven.

Not only can digital out-of-home be used to influence purchases at the point-of-sale, but it also becomes a method whereby network operators can more effectively manage the in-store movements and activities of consumers. For instance, a sign might read, "Please visit aisle five to see what's new in our baby diapers exhibit..." This call-to-action/branding combo can be very effective. In some instances, it can be used as a means of crowd control.

4. Information

In some instances, profit or cost savings may not be the summum bonum of a network's existence. Communicating a message of information to an audience may be the sole reasoning behind a deployment. For instance, churches and other houses of worship benefit by utilizing digital signage as a communications tool. Live or prerecorded sermon broadcasts can be displayed locally or nationally through a multicasting digital signage hardware and software installation. In the case of a church, ROI is not priority one, but content quality and reliability becomes paramount.

Airport digital signage is yet another excellent example of an information-only privately operated digital signage network could run. Anyone who has been to the airport has most likely viewed the digital signage that displays departure times, gate numbers, and maps. Such dynamic methods of disseminating information save time and frustration for airline passengers. And, as we all know time=money in the business world. Of course, not all airport digital signage is devoid of advertisements, but much of the display of information in airport digital signage venues is informational only.

Benefits

Demographic targeting comes to mind. We all know at different times of the day, different groups are drawn into particular venues. For instance, the lunch crowd at Starbucks will appear much differently than the crowd that came earlier that morning. For that reason alone, digital signage is worth its weight in gold. With increased knowledge of specific demographics during specific times of day, private labeled network operators can more specifically hone a marketing campaign to a particular group. Similarly, advertisers can produce a needed sale lift with a solicited "call-to-action." Driving audience behavior is a key component of digital signage.

Revenue, if measured at all, is much more difficult to determine on a private network. Although most understand what the term "sales-lift" could possibly mean, many struggle getting the specific numbers. Understandably so. While measurement is only one issue, benefit can truly be seen through use of a private internal network.

One such benefit is 100% pure unadulterated control. This includes control over all the hardware, software, content, and maintenance. Whereas, ad-supported networks are much more accountable to the hand that feeds.

Costs

Costs associated with hardware, software, and installation open up a can of worms for another time. A much better, and perhaps more elusive cost associated with private networks involves ongoing content creation. Refreshing, new content is the lifeblood of any network and a necessary part for both regular customer and employee sanity. I know of several networks who had problems with both employees and consumers turning off digital signage because the rotating ad loops were either too short, or the content was so poor, it was simply too annoying to tolerate for a long period of time. Good content takes effort. Effort means time. Time means money. Some smaller networks, in an effort to scrimp; have cut content creation budgets to a sub-par level. This is a problem. Sales-lifts, branding, and calls-to-perform are often rendered null when long dwelling captive audiences have to repeatedly watch the same crappy rotation over and over again. If you want it to draw, it needs a compelling reason.

Apart from the content costs, don't forget you're fronting the cash. That's right. The owner is the owner, which means they're the purchaser, buyer, Daddy Warbucks... You get the idea. Simply stated, the money fronted for such a network is not supported by externalities. It's all supported internally. This is why a cost/benefit analysis for deployment is crucial.

Issues

As the sole manager of the network, private label network operators can often have a daunting task. If your software platform is not "fool proof" then you may run into issues with maintenance. Or, in a worst case scenario you may have to hand deliver your content to multiple displays via DVD. Believe me, it's something that is still done. Not to name any names, but I know of a very profitable digital signage network in Texas that was regularly swapping advertisements with DVDs delivered to each display. I'm not going to mock them, at least they're out of the red, but it's called "dynamic" digital signage for a reason. Get my drift.

Another issue, of necessity, had with ad networks that can be alleviated in privately held networks is the need for constant monitoring, proof of play reports, and advertising sales. Perhaps proof of play may be necessary, but ad sales are a headache currently had in this industry that is still looking for a savior. If you're a company, looking for an opportunity and have ad sales experience, feel free to jump on board and hang on for the ride. There is a real need out there for networks that need ad space filled. But, why am I talking about this? This has nothing to do with private networks... Conclusion

What is your desire? To sell more crap to people that don't necessarily need it? To inform and enlighten? To brand? There are multiple ways a private network can benefit the operator. And, I guess as an overall network of screens, private labeled providers are not pigeonholed, but there is usually a vast distinction between a retail private labeled network and a network created solely for sales lift purposes. So, when creating your private network be sure and understand where you sit on the internally-driven network spectrum. If you don't know where you are, you'll have no idea where to go. However, if you're well aware of your model, have a clear understanding of your cost, and realize where and how you can receive a healthy ROI from your

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“Mobile marketing” and “digital signage” have been buzz phrases over the last couple of years. Both mediums offer unique and strategic ways to connect with consumers. With a cellular phone in nearly every pocket in the country, mobile marketers realize the vast opportunity to connect. On the other hand, digital signage vendors and network administrators are focused on creating dynamic, honed, and targeted content aimed at reaching niche markets in out-of-home venues worldwide.

It would seem foolish to ignore such powerful sources of digitally enhanced and singularly focused ad mediums. Bringing them together in a unique way has been the subject of numerous articles of late. Here are the questions this article will answer: How does SMS mobile marketing benefit my digital signage network? How can digital signage and text message advertising work together most effectively? How can I procure my own short code for SMS integration with my digital displays? If I don’t want to spend the time or money in procuring my own short code, where are the most cost effective sources for SMS advertising?

Before we answer these questions, it may be helpful to define some terms.

Mobile Marketing Terminology

SMS: “short message service” or the acronym for a text message sent from a mobile device. SMS Short Code: A Short Code is a mobile telephone number (typically 5-6 characters), which can be used to direct SMS and MMS messages from mobile phones. Short codes can be vanity codes as well, but vanity short codes are sold at a premium. Keywords: specifically recognized words sent within the text of the limited 140 to 160 character text message which can be elicited to trigger a specific response. SMS Aggregator: An aggregator is a mobile telecom company that acts as an intermediary between companies wanting to utilize a SMS shortcode (in this case a digital signage network operator) and the mobile operators (e.g. Sprint, Verizon, T-Mobile, etc.). Mobile aggregators reconcile the payments for those messages, from the operators, on behalf of clients. This is also known as a mobile transactions network. SMS Gateway: the modus operandi in which the text message is sent. SMS aggregators provide the gateway in which the SMS messages are sent. MO: “message or mobile origination” MT: “message or mobile termination” Digital Signage: digital billboard utilizing a LED, LCD, projector or plasma screen with an attached media player. The attached media player allows for real-time, dynamic, high definition content display.

Mobile marketing can benefit a digital signage network in several ways: It engages the audience through interactivity. It allows for an increased digital signage metrics capabilities. SMS can bring customers back again and again.

SMS Mobile Marketing Interactivity and Digital Signage

Standard SMS services allow for a tit-for-tat text and response system. For instance, I text in a specific keyword or phrase (MO) and the gateway, upon receipt (MT) of the specific phrase, will return a previously determined response.

For example, a digital display reads, “text ‘pizza’ to 12345 to receive a free coupon for $1 off your next pizza.” The gateway will receive the keyword “pizza” and a message will be returned with the appropriate coupon and coupon code embedded.

Additionally, there are some solutions which allow a greater measure of interactivity. Many signage networks, especially those in social environments, already utilize text-to-screen, mobile voting, and SMS controlled interactive games. Engaging the audience is not only important, but essential in making lasting advertising impressions.

Increased Digital Signage Metrics

Although digital signage dweller measurement has experienced rapid improvements in the last couple of years, the metrics are still not quite to the “Minority Report” level. In fact, they may never reach such in-your-face advancement because privacy issues eventually become a major factor.

Mobile marketing integration allows for a simple way to judge whether someone is not only viewing a digital display, but if they are interested in what may have caught their attention. By measuring the SMS text message response rates of digital signage, network administrators are able to more accurately depict the effectiveness of their networked screens.

Opt-in SMS

After a consumer has contacted the gateway via a text, the network administrator then gains the ability to solicit to that individual to receive opt-in messages on an ongoing basis.

For instance, a person may receive a text with, “for weekly pizza coupons, text ‘pizzatime’ to 12345.” This will ensure weekly impressions of specific brands and reminders that can be cobranded for maximum effect.

With a large volume of opt-in subscriber phone numbers, SMS companies can send pizza coupons with something like the following, “This week’s pizza coupon code for $5 off is 12345. Coupons brought to you by digitalsignage.com.”

The effectiveness of both a digital signage as well as an SMS campaign is greatly enhanced with congruency. However, a great deal can be involved in establishing SMS for your digital signage network.

SMS for Your Digital Signage Network

There are several things that need to happen when a standard tit-for-tat SMS campaign is integrated with an out-of-home network. First, you need a short code. Second, you need keyword recognition software which will allow your specified keywords to be recognized and the appropriate responses sent back.

Interactive text-2-screen digital signage is a bit more involved. For instance, you’ll need a separate application, powered by .NET or Adobe Flash which allows for near-complete control by the cell phone operator. There are numerous application solutions for this type of application. Efficiently coding your own solution in-house depends on how large of a network you’re operating. If the network offers enough scalability, then maybe an in-house, Flash-driven SMS game would be ideal. Otherwise, it would be wise to go utilize existing platforms.

Procuring a Short Code vs. Piggybacking

Two options exist for integrating SMS into your signage network. First, you can work with an already established mobile marketing company and piggyback. Or, you can essential become a mobile marketing/digital signage company by procuring your own short code.

In some cases, it may be least expensive to integrate a single mobile device into the hardware of the display. Paying for unlimited text with a cellular phone can be much easier than starting your own mobile marketing company. If you want to go "full bore," then the directions below should be of assistance.

Going with a Tier 2 or Tier 3 SMS Aggregator

If scalability is limited on your network it may be best to simply work with an established mobile marketing company. This has several benefits. They’ve already done the work of short code procurement, software development, and (as you’ll see later) they’re already paying all short code license fees. They focus on the SMS, while you focus on your core competencies. In this case, digital signage. Tier 2 and 3 aggregators can give fairly great bulk pricing, even if you have a fairly large network.

A WORD OF CAUTION: Beware of mobile marketing providers who’re not utilizing an SMTP server for their MT (returning text messages). Without this type of system you’re looking at paying exorbitant per-message fees. Also beware of companies who charge keyword fees. Although, this may be necessary at times, it’s usually just another nickel-and-dime ploy. If they already have a customer utilizing a particular keyword, than it’s taken. It doesn’t mean you should have to pay more for it. Some companies charge monthly fees for simply using a keyword like, “pizza.”

Growing Your Own

Finally we get to the crux of this article! Pat yourself on the back if you read this far. If you scanned to this point, that’s probably better because this will help you understand how to procure your own short code and establish your own SMS marketing system.

If your network allows for a large amount of scalability, procuring your own short code may be the most cost effective solution. Short code procurement costs are as follows: Set up fees run between $3,000 and $5,000, depending on what aggregator you procure them through. A list of some Tier 1 aggregators can be found below in Exhibit A. Monthly short code fee of $500/month Monthly vanity short code fee of $1000/month Per message fees of 1 to 5 cents for both MO and MT depending on volume and scalability.

I’ve compared prices of several different SMS aggregators and they vary slightly. So, the pricing you chose really depends on the business model you wish to set up. It's worth some time looking into. The pricing is also proprietary, so you’ll probably have to sign some sort of NDA to even look at the pricing schedule.

On a side note, there was an article out several months ago which compared sending an SMS to sending and receiving messages from the Hubble Space Telescope. The per bit costs of sending an SMS is thousands of times more expensive than sending and receiving information from outer space. It’s like these companies are printing money.

Once the procurement is taken care of then you’ll need to have a programmer take care of the SMS listener and SMS sender. Make sure you set up the system to run off SMTP for MT. This will make things much cheaper in the aggregate.

I understand this is quite a generalized version of what actually needs to take place. The information below should help you understand where to turn for help in procurement, use, and initiation of your very own SMS mobile marketing system.

Exhibit A

Aggregator Information

TIER 1 - National Mobile Media Connection Aggregator

Direct connection (SMPP) to at least 4 of the 5 following mobile operators: Alltel Communications, Cingular Wireless, Sprint/NEXTEL, T-Mobile USA, and Verizon Wireless. Premium settlement agreement with at least 4 of the 5 following mobile operators: Alltel Communications, Cingular Wireless, Sprint/NEXTEL, T-Mobile USA, and Verizon Wireless. Acceptable 24/7 service level agreement on all services represented, quality infrastructure, redundancy and network security. Only publish content when rights are owned or license to publish is held on behalf of client and published for direct client benefit. Support carrier grade SMS & MMS capability. Some examples of Tier 1 aggregators include: SinglePoint, CellTrust, Vibes Media, MBlox, Mobliss Inc., Verizon, Vivo Touch, ClickaTell, Trac Phone, T-Mobile, iLoop Mobile, ipsh!, HSBC bank, Upoc Networks, Sprint, Cybase, Proteus.

TIER 2 - National Text Message Connection Aggregator

Direct connection (SMPP) to at least 3 of the 5 following mobile operators: Alltel Communications, Cingular Wireless, Sprint/NEXTEL, T-Mobile USA, and Verizon Wireless. Premium settlement agreement with at least 2 of the 5 following mobile operators: Alltel Communications, Cingular Wireless, Sprint/NEXTEL, T-Mobile USA, and Verizon Wireless. Acceptable 24/7 service level agreement on all services represented, quality infrastructure, redundancy and network security. Only publish content when rights are owned or license to publish is held on behalf of client and published for direct client benefit. Support carrier grade SMS capability.

TIER 3 - Connection Aggregator Reseller

Tier 3 aggregators are companies who predominantly operate their campaigns on the backbone of Tier 1 and Tier 2 aggregators. These companies generally mark-up aggregator messaging rates and premium payouts.

Source: http://www.usshortcodes.com/csc_find_con_agg.htm

Related Posts:

• Measuring digital signage ROI with mobile marketing
• RFID and Digital Signage

A digital signage news report stated:

‘China is set to take over from the United States in 2008 as the biggest source of growth in global ad spending. Although the United States remains a much larger advertising market over all, China will account for 24 percent of new spending worldwide, compared with 20 percent for the United States.' Heralded partly by the fact that television advertising in China has a long way to go before it catches up with the rest of the world, Out-of-Home and indeed, Digital Signage seems to be the medium of choice for pushing advertising content to the teeming billions.

A February 2008 article outlined some of China's vast digital signage networks as well as the companies that manage them.

Focus Media (NASDAQ:FMCN)

Focus Media was the first digital signage firm to have an IPO. At the time of the February publication, the company had over 80,000 locations in public and retail locations. And, "its stock peaked at 66.30 in 2007, growing more than 200% since its IPO." The company acquired CGEN media just prior to its IPO at the end of 2007 for $350 million in cash and stocks.

AirMedia (NASDAQ:AMCN)

AirMedia focuses on Chinese air travelers-which are some of the country's wealthiest. Their network boasts over 16,000 screens in airports across the country

VisionChina (NASDAQ:VISN)

VisionChina has networks installed primarily in buses and trains. With a network of over 26,000 screens and a captive audience of bus riders the company has been able reach and target vast amounts of Chinese citizens.

The "Big-Three" of Chinese Digital Signage, command a staggering $5.375 billion in market capitalization which, according to NSR, represents scale comparable to the entire Digital Signage industry world-wide.

1. With such a large market cap and a big head start, will anyone be able to catch up?

2. What can we learn from them?

Well, some good breaks have come of late for digital signage, including some independent reports that pay-per-click fraud for internet advertising is on the rise and not going down. ClickForensics, an independent analysis company, has determined that although the major search engines have increased their policing of click fraud in various ways, it still continues to rise year after year.

The Click Fraud Index shows the rise. And, although some of the major companies, including Google and Yahoo, are taking the click fraud seriously it still continues to occur. In fact, it's not halting the increases in any way.

What does this mean for digital signage advertising networks? You be the judge. It may mean that going forward, signage will be come the wave to ride to make sure you're getting the most bang for your buck in digital advertising. With the increase in metrics, impression, and audience measuring tools, digital signage may end up more like "Minority Report" afterall--spanking the pants off Pay-Per-Click.

Future Source Consulting, a UK based company just released a white paper outlining five reasons why digital media networks fail. A recent post at Minicom outlines this wonderfully. Although software solutions have improved and hardware prices have continued to fall, we’re not out of the fray just yet. Network building still has a hefty price tag. And, the more hefty the network, the larger the cost of deployment. Intimate and detailed knowledge is extremely important for any network to succeed. If hardware and software hiccups were the sole issue, I’m sure network operators would be ecstatic.

Without further delay, the top reasons why networks fail:

1. A lack of clear ROI modelling

Often large upfront costs to implement and maintain a network make such a signage network very risky and sound ROI models critically important. There is a need to prove that screen networks lead to sales uplift, and simply measuring footfall and dwell time is not enough. Proof is needed that screen networks deliver measurable and lasting uplift.

2. The lack of advertising proof points

Whilst a number of companies are using technology to provide screen ‘footfall’ and ‘dwell time’ metrics, this has not provided a raft of proof points. Compared to TV, radio, posters and the internet, screen media networks still have a way to go in proving their value.

3. Too much network fragmentation and not enough scalability

With so many independent networks in operation it is very difficult to tempt advertising and media agencies to spend on digital signage. ‘Opportunity to see’ statistics are not at all persuasive and it is almost impossible to run a coherent campaign in multiple locations.

4. Project complexity

In some cases eight individual parties can be required to complete a project. This is simply too complex.

5. Little understanding of content requirements

Issues such as the expense of refreshing content, the mix of content and what the content (particularly advertising) is supposed to achieve are frequently overlooked. However, this is the most important aspect of a network to get right.

The article goes on to state that such failures often come with a network based on advertising. However, the author states, “Though other models are equally valid, and quite often the most interesting, it is the advertising model that will really drive the development of digital signage.”

Now we come full circle back to the “chicken or the egg scenario,” (in this case network or the advertisers scenario) an issue smaller networks are having as they move forward. Whatever the struggle, networks don’t fail, people fail based on lack of understanding when deploying networks. Studies like this help to alleviate the possible pain that can come from such a mistake.

I used to love games like Candyland and Apples to Apples when I was a kid. Interestingly, I’m always looking for better, more efficient ways of doing things. And, as a result, I’m always making comparisons. Perhaps this is what has attracted me to digital signage as a method of advertising. Digital signage has the ability to specifically target consumers at the point of purchase.

When making comparisons to mediums of advertising, adjustments must be made to data measurement and comparison to ensure a more unbiased comparison—an apples to apples comparison. Otherwise, what you thought was an apple could be an orange, or worse yet, an onion. Missing detailed information can make decisions less informed.

When it comes to choosing digital signage content, making it an “apples to apples” decision can be extremely difficult. While choosing what to display is paramount to performance, picking other factors can be even more important. It’s a bit more difficult than running an ad Super Bowl, albeit less expensive.

The following factors can help digital signage advertisers make informed content deployment decisions:

• Who is my audience? Are they male? Female?
• How old is my audience? This can help determine whether interactivity such as SMS can be integrated with the signage.
• Where is my audience? Venue type can say a lot about what may be displayed.
• How long are the consumers viewing the screen? Do they have time to watch a scrolling ticker, or will a simple static ad that takes up half the screen be most effective?
• How large is my audience? Daily? Weekly? Monthly? Yearly?
• What time of day will my ads most likely be viewed? When is my optimum time to display?
• Do I have a method of measuring my digital signage ROI?
• Where is my audience specifically standing? Are they purchasing or perusing?
• What is my message? What is my call to action?

All these factors and others are of utmost importance when choosing specifics in content deployment. Once we have the answer to many of these questions, we can make a much more informed decision between digital signage content brainstorming, creation, and deployment when comparing it to other forms of advertising.

Unlike other forms of media, digital signage does not drive customers into the store, but drives them to act once they’re already there. Driving consumers means getting their attention. Digital signage may have the answers to moving customers who’re already purchasing.

I just thought I would post some of my favorite digital signage blogs. I'm subscribed to all of these blogs and regularly read the content they provide. These blogs are not listed in any particular order. Enjoy!

POPAI Digital Blog. This is a newly launched blog so I'm fairly new to it. However, it's a conglomerate blog written by several industry leaders. This is the best type of blog because many heads are better than one. Already some great content posted.

Bill Gerba. The Wirespring guy. Anyone who's anyone in the industry has read this guy's content. He's been writing articles on signage for the last couple of years. Most of his insights are super good.

Sixteen :: Nine. This blog is done by ScreenMedia. Regular updates here with very good content. I always check back to read the jems in this one.

Minicom Blog. Minicom Digital Signage keeps a very good blog that posts fairly regularly. There content is usually descent.

Nate Nead. Just a very shamless plug for my personal site.

Keywest Technology Blog. Great content! David Little has a great knack for writing relevant, interesting articles for the industry.

DS Insights Blog. The name says it all. Just updates and insights into digital signage.

DigitalSignageBlog.com. Self explanatory why someone would follow this one. Great content from a myriad of different subjects.

Rob Gorrie. Rob is the CEO of Adcentricity, a signage aggregation company based on the east coast. His insights are great and I love reading his blog.

These are just a few of my personal favorites. There are many other blogs in the digital signage industry, but these are some of my very favorite.

I read an article posted by Bill Gerba of Wirespring several months ago where he speaks about how digital out-of-home advertising is literally snagging valuable and longtime customers from traditional mediums. The article’s title was “Can out-of-home play nice with traditional channels?” Those at least somewhat familiar with the digital signage industry will recognize the familiar tones like, “TV is dead,” and “returns are decreasing for traditional advertising mediums.” While such familiar tones are accurate, the industry still lacks the standards that come from longtime use and experience--standards that help streamline any industry into a more efficient mold.

For instance, after pricing out the costs of just shy of 25 companies for ad space on their out-of-home network several months ago, I realized the numbers jumped all over the spectrum. “We can give an impression for as cheap as five cents,” was the response of NuWave Media--yet another start up hoping to build steam by establishing their own signage network. While speaking with several other companies, I found I could get impression costs down to one cent. At least this is what was said based on supposed numbers on average venue traffic.

The struggle currently is, who’ll emerge when the fighting stops and the dust clears? In previous posts, I’ve quoted Keith Kelson, MediaTile CEO, because I feel he was right on when he said, “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. [In order] to secure real estate you need a strategy…”

What will be your company’s strategy? Well, it’s interesting to see what is happening. It’s a knock-down, drag-out war. Casualties will not be few when the end comes. Interestingly, I’ve seen a bit of the competition already. Competition is great, but it can get out of hand.

I’m not sure how many have seen the movie “Pirates of Silicon Valley,” but the premise is the same, “do what it takes to get ahead.” Sadly enough, such a strategy works in many instances. I disagree with such a methodology, but that’s because I was taught to play nice. Let’s not forget that business is not like poker. There are no zero-sum games here. My success is not based on your failure. In fact, the opposite theory should be our reality here. Let’s find a way to work together, combine our strengths, and create something of value for all involved--find what niche we fit into, then exploit it.

My final question is, with things so cutthroat, can’t we a all just get along?

This post is to define what the digital signage blog is and what it is not. That way, when we receive some snide comments from internet trolls, we'll be able to cite this entry as our "kick off" point.

What the digital signage blog is...

Just like any other blog, the digital signage blog is an open discussion on both specific and generalities in the industry. Because blogs are most often informal, so this blog will also take on a less formal approach. We do intend it to be an information and content source for the digital signage industry. Having said that, we do not want it to be too informal. It is sufficient to note that the digital signage blog is a blog. Hopefully that's nuff said (you can use words like "nuff" in a blog you know).

Guests, Interviews, Tutorials, News, Technology, Showcases and Discussion

These are just a few of the topics of interest we will be covering and voicing our opinions about as we post. Occasionally we'll have a guest interviewee, company or product showcase, and even an occasional dancing midget. Frequently we will post tutorials with answers to specific hardware and software related issues and we'll always be talking about the latest and greatest in technological advances coming forth in the industry. To us, that's the best part in the open discussion on the WWW.

What the digital signage blog is not...

We do not tout to be "the leading source" for information, nor do we claim to have the "inside scoop" on what Scala's CEO said over dinner last night to his wife about the latest deployment. We certainly do not want to be a gossip column that touts the latest Paris Hilton or Britney Spears blunder. Having said that, we do realize that spikes in traffic always occur when "sauciness" and "lewdness" are on blog center stage.

Finally, we will make mistakes now and again. I certainly want to make this very clear ab initio. We wish to be as professional as possible here while still keeping things interesting. This is not an easy task, believe me. You'll know we've failed when you see a post entitled "Britney Spears seen on local digital signage billboard..."

If you do see an error, misrepresentation, blunder, foible, lie, fib, or questionable material, we hope you certainly let it be known. Just be nice about it. We realize the internet space is free and that digital signage is a cutthroat industry, but feel free to offer constructive criticism and I think we'll do the same. Happy digital signage blogging and we welcome you back anytime.