We will occasionally be posting leads so our industry visitors have a reason to keep stopping by. Here's a lead we received within the last couple of days:

We are a corporate company, we need 4 screens for employee information, we already have a Quad Head display card.

Can you suggest hardware/software/cabling for four screens in different buildings, the distance between the building is 100-200 meters.

Thanks, Zia

For contact email, please contact us.

You have been to the restaurants where the sign (perhaps it's now digital) reads, "no shirt, no shoes, no service." Regardless of what industry your in or what product you push, there are still some common courtesies that need full adherence. As vendors scramble to and compete with one another for business--especially in this current stage of growth--courtesy becomes a byword. However, when it is time for real talk with real projects, be "real." Otherwise, both vendors and clients become mutually frustrated and disenfranchised with one another--something that can put a bad rap on the entire industry.

In their book, "Lighting up the Aisle" Adrian Weidmann and Laura Davis-Taylor echo some of my own sentiments regarding client vendor relations. The following is a list of "never dos" as a client on an in-store digital signage project.

• Never ask for free thinking or free pilot projects.
• Do not give unclear direction.
• Don't "fail to support your vendors if someone on your team is gunning for them unfairly."
• Do not be a "know-it-all." Customers and numbers are, in the end, the only source of proof or disproof.

• Do not give away free thinking or free pilot projects.
• "Answer strategic questions with none of the necessary information needed to formulate an educated response. And clients, if they answer anyway, you've got yourself a novice...seasoned vets respect the time and due diligence it takes to formulate strategic answers and will call you out on this."
• Never claim skills you do not have.
• Do not think you know it all.

After spending months in development, $$$ in development, and time and assets procuring a hardware solution, do you think a digital signage company want to give out anything for free? If they do, then their management team needs replaced with someone with more common sense and better business sense.

So, whether your are a digital signage vendor looking for your next client, or a client seeking the best fit for your next gig, be courteous, and follow some tactful common sense rules. Seriously, do you think digital signage is a charity function?

I have written previously regarding Google's entrance into digital signage with their New York wayfinding center. Google's existing hold in the online advertising sector will very easily be moved out-of-home, mark my words. Many people think Google is a search company that just so happens to make money from advertising. I would argue that Google is an advertising company who provides a great way to access information. Advertising is first, search is second (it just so happens that their search algorithm is so stellar that they currently hold about 80% market share for online queries). Okay, maybe this an extreme view of Google's place in the world, but it may not be that "out there." As one of the largest advertising agencies in the world, Google has existing clients in every industry and in every niche. What is to keep them from entering the digital-out-of-home space? It may only be a matter of time.

Whether it's a standard digital sign, a point-of-sale system, or an interactive digital menu board, digital signage will eventually be everywhere. And, when the industry "arrives," interactivity--with gestural applications, touchscreens, and mobile apps--will be the rule, not the exception. Touch screen signage, in particular, will play a very large role in getting online ad campaigns to participate in out-of-home advertising.

Is not a touchscreen nothing more than a glorified computer anyway? Touching the screen simply takes the place of a mouse on the GUI. As such, a consumer or screen operator is given more control over what is displayed. But a benefit remains for those managing content: they can still limit where the user can go, guiding them through a touch screen experience of sorts.

How Digital Signage Advertising Swap is Like Embedded Google Pay-Per-Click

If you have been around the web a bit, you've probably hears of various link-building schemes whose purpose is to drive irrelevant traffic to make money from "clickthroughs." Although such click fraud schemes are unethical, they are often successful--at least until they are discovered. Since 2003 Google has allowed for relevant advertisements provided by themselves to be published to virtually any website on the Internet, allowing for Google and others to make money. Google "Adsense" and "DoubleClick" provide advertisements for businesses both small and large. These advertisements have been in the form of text and moving graphics and, when relevant, can be a viable form of advertisement for searches performed on the Web.

Personally, I often feel that PPC is a form of "link prostitution," especially for those who have spent time and money working to make their particular website a place where goods and services can be offered. This only applies to those websites who are not currently offering goods and services. Those who offer a viable product would never think of selling away hard-earned traffic by posting Google PPC ads on their website. This is simply foolish.

However, some digital signage networks, especially the more localized networks starved for cash, often "pimp-out" their network by utilizing an advertising swap network model. Such a model takes viable eyes away from an internal, local business--something companies should value--and gives that "digital real-estate" to someone else--albeit non-competing. While some think they are doing local businesses a favor, other recognize advertising swapping for what it is: a form of "digital prostitution."

When Will PPC or Action-Based Affiliate Marketing Appear on Digital Signage?

How long will it be before Google rushes headlong into digital signage? If they do, how will Google fully leverage the power behind their existing advertising base? These questions intrigue me greatly because once online advertising meets digital-out-of-home, digital signage will never be the same. The capability to implement pay-per-click, affiliate links, or a derivation thereof, onto a digital touch screen is already here. It has not, as yet, reached signage networks for a few reasons.

1. PPC is based on "search" while, currently, digital signage is not. Signage may be able to curtail this with wayfinding and product search interfaces with touchscreen signs. However, most folks come out-of-home to search for products out-of-home. If they wanted to search for consumer related products on the Internet, they would most likely do that in the privacy of their own home. In other words, people go to the mall to purchase from the mall. Retail still gives instant satisfaction of having

2. Google, Yahoo, and Microsoft track clicks coming from the same IP address. If too many clicks are coming from the same IP, then more clicks does not mean more money for the advertising venue. It simply means that the particular account would most likely be disabled. So, technically PPC would not work at all with digital signage at all. Affiliate marketing would work very well, but then you're getting into "prostituting" your network again.

3. Operators of digital signage display screens are not quite ready to give control up to consumers. Oh, they talk about doing it and refer to how important it is to put control back in the hands of the consumer. The reason: other forms of media have already done that--almost to a fault. And, as a result, advertisers are grasping at straws attempting to make a viable impact. Certainly digital signage vendors can do a much better job of informing network operators that digital signage can give limited control back to the advertisers, while still increasing signage network impact.

Due to some of the forgoing issues, a cookie-tracking affiliate program would, most likely, be the best way to marry online advertising with digital displays. Doing affiliate marketing for another business using a touchscreen sign and a digital display may eventually prove a great way to take out-of-home traffic and drive it back to the Internet. But is that where we want it? Such a system would take digital signage away from retail--which seems counter-intuitive. What do you think?

Some of the intricate research that has been done in regard to Internet marketing is simply fascinating. A recent post at the Google Blog outlines some of the psychology behind where persons eyes go on a page after an online search is performed.

Personally I found one particular portion of the study quite fascinating. The Google team of search specialists were a bit concerned that some of the thumbnail images that appear in online search would be distracting from the actual content that individuals would be looking for. But, much to their suprise, the graphical images acted as a help, rather than a hindrance for obtaining the appropriate information. The takeaway for digital signage content creationists: a picture can say a thousand words. Like most men, I am a terrible multi-tasker and a very visual creature. What you can show me always makes more sense than what you can tell me or have me read. If I could get my information from a digital display, through pictures and videos then I would be as happy as a hog in the sunshine. But, alas, I must read.

I can't remember where the quote comes from, but I remember hearing the statement, "bring two things together that were previously unrelated and that is where great ideas emerge." This may not be a great blanket statement for life (I'm sure peanut butter does not go very well with brussel sprouts), but it is true in many "think tank" and "business planning sessions." It is happening under our noses. Different forms of digital media are converging to make a more powerful impact than ever before. Having said that, let me pose the question: what can we learn from some of the research already performed on eye movements when it comes to looking at a screen? Do digital signage and Internet queries relate in any way? I would argue they do. However, Internet content and digital signage content differ greatly.

Unlike digital signage, online search queries are less visually stimulating (that is, unless your search is done on YouTube or Vimeo) and are usually used by those seeking out something. Opposingly, digital signage offers a more visually stimulating experience--the cotton-candy or watered-down version of information dispersion. Why? Well because the person near the screen is generally not seeking said information. The information is seeking them, desiring to make an impact whether the viewer likes it or not. As a result, the images and content will always be more graphical, eye-engaging, and fun. Although digital out-of-home offers a more visually stimulating experience than online marketing does, generally, the way our eyes move and the way we take in content will most likely not change from medium to medium. And, as audience measurement devices continue to improve, we will be able to better track not only how many eyes viewed (a term the OVAB refers to as the "vehicle audience"), but where on the display they were glancing.

In the case of the Google report, Google guru's found that people generally evaluate the search results so quickly that most of their decision making is done subconsciously. Digital signage metrics evaluations have found similar results: people don't look long and when they do, decisions are made on a "blink" time frame. Accordingly, content and metrics are moving closer and closer to the speed of eye movements and the briskness of decision making capabilities. In addition to measurement, relevancy also plays a key factor in making the content count. In the case of Google, their search team was extremely pleased with their results because, "[they] had managed to design a subtle user interface that gives people helpful information without getting in the way of their primary task: finding relevant information." Sometimes finding relevant information means avoiding clutter, keeping things simple, and giving people what they want--meaning make the message match the audience. As I see it, digital signage is simple an outdoor extension of the Internet, especially as we see touchscreens become the digital signage of the future. In such a case, measurement devices may be best handled by the Google team...

It was David Bowie who originally penned the words, "I will be king, you will be queen, we will be heroes." In fact, years later the Wallflowers did a cover of it on the Godzilla soundtrack. How does this relate to digital signage? If you need both a king and queen to make a kingdom, then what are the necessary components of a signage network that make up a proper "kingdom"?  "Content is King" has been shouted from industry rooftops for several years now. It has certainly been an overused "buzzword." Personally, I've heard it so oft repeated in writing and industry gatherings, it makes me queasy. I can only handle the repetition in small doses, David Bowie included. But if digital signage content is king, what is queen? Screen parting? Role-based admin? Day-parting? Context? Audience measurement? All these pieces play a part in creating a workable unit.

The term "content is king" is not a new idea. It was first coined by those creating content on the Internet, aimed at driving relevant web traffic. Similarly, digital signage is only relevant when the content, context, and schedule are congruent. Determining and managing the tier 2 pieces of a deployment often include content.  Sadly, digital signage content often becomes an afterthought in the entire process. After procuring hardware and software, content becomes a recurring cost that is often the most expensive, especially when you want to keep producing relevant, new, and engaging assets on your digital displays. I hope you feel this way, unless you want the issues that can come with "clerk burn" and other audience revulsion problems.

Guy Avital, CEO of UCView, was blasted recently for a content creation post he wrote for Digital Signage Expo's website. Guy's intent was to inform readers of different ways content could be displayed. His ideas were not taken kindly by our somewhat small community of industry writers. In his defence, digital out-of-home is so broad in its applications, it is presumptuous to indicate that a particular content will not work in any context whatever. Having said that, let us not assume this gives us the excuse to be lazy or indifferent. Accordingly, I am in disagreement with Mike Hiatt, Director of In-Store Media Networks at Walmart, who said, "content is not king." The explanation of his statement indicated that content becomes king only when technology matures. Mr. Hiatt uttered this statement over a year ago now. Hiatt probably agrees that we've digitally evolved in the last year and most likely thinks his previous statement is now outdated. Why? Because digital signage software has crossed the chasm. Sub-par content is a thing of the past, especially for networks seeking to make a real impact. Digital signage may not have emerged from the cocoon as a the beautiful butterfly, but it also doesn't mean our content can be excusably hideous.

Is Measurement Queen?

Industry experts, including Lyle Bunn, refer to audience measurement as the digital signage "queen." Audience metrics, aimed at increasing digital signage ROI, have been another key area of discussion in solidifying signage's place as a viable medium. A proper content schdule of relevant and engaging assets is vital for signage network success, but it means nothing without the ability to tell an advertiser, "your loop was played X number of times for X number of individuals over X number of days." Also, using the OVAB's audience metrics guidelines is not only a place to start, but a necessity. Without industry standards for audience measurement, all would be chaos, CPM prices would be as shifty as the wind, and advertising agencies would never even bat an eye at DOOH.

Regardless of how measurement and content continue to evolve, there will inevitably still be some chaos. Even in content deployment, chaos is still current: a local barber installing a Vizio LCD with a looped Microsoft PowerPoint presentation, a projector screen set-up with a DVD on loop, or the ever-so-familiar thumb drive update to an archaic PC. For content and audience measurement to reach their full potential, affordable signage solutions must reach the masses. Audience measurement devices, including those showcased at the most recent expo, have improved markedly in the last year alone. And acceptance of the accuracy of such devices has also improved.

When it comes to digital signage content, there are many players. Our digital signage directory will attest to that. A large majority of the companies contained therein, especially those in the United States, are content creators. I don't think that we will, at least in the near future have a problem with creating eye-appealing digital signage content. However, keeping up with the Jones' when it comes to audience measurement may be a different issue entirely. But, when great content eventually morphs together with excellent and accurate audience measurement, we'll certainly be in for a "heroes" play. That is, if David Bowie was right...

This morning's USA Today featured a full spread, highlighting the digital signage industry. The piece outlines some of the industry benefits, issues, and patterns for growth. The article has many great quotes from leaders within the industry, giving opinions, predictions, insights, and observations. It is an excellent piece, well worth the read. Many companies also received some great exposure. This is an excellent plug for the industry. One of my favorite quote from the article came from Dick Blatt, CEO of POPAI, “Digital signage is being used, often as part of  comprehensive  'Marketing  at Retail' strategies  and  digital  signage has become  a  powerful  tool that are being  integrated  into many  oftoday’s  comprehensive in-store strategies.Blatt says “Digital signage helps retailers to create highly targeted messages to consumers based on  screen  locations within departments, based on high volume store traffic locations and even by programming  messages  by  daypart based on the demographic profile of shoppers.  Placing digital in close proximity to the shelf position of the product being advertised creates positive disruption, creates awareness and drives product sales."

The report was distributed in Chicago, Los Angeles, Atlanta, and New York. The distrubution was originally touted to be printed in 750,000 issues of the publication.

Download the USA TODAY featured article on Digital Signage

I am looking for real feedback from this post. So, your comments, questions, and concerns posted below will be much appreciated, and in this case, very necessary.

We are currently putting together a page on DigitalSignage.com which will have a digital signage lead feed. As we glean industry leads, we will be posting them to the lead feed. This way, you can get regular updates as to what RFPs are going out, in real-time.

We will even be posting free leads here and there just to keep things interesting and to keep you coming back. Limitations will be placed on the number of companies that will be able to purchase each lead. This will ensure that 30 companies will not be chasing the same lead, barraging people.

The leads will be well qualified by a member of our internal consulting team. Quality leads are what we are after. As of right now, the leads will be displayed on the feed and scrubbed of contact information. All other necessary information needed for you to qualify the lead for purchase will be available. Pricing, most likely, will depend on lead quality, location, size, and the relationship "level" your organization has with DigitalSignage.com. This is where we need your feedback. We will most likely be doing a subscriber/PPL (Pay Per Lead) hybrid. But, we want your honest feedback and response. How would you like to purchase leads? In what way would you be willing to make this work?

Perhaps the biggest benefit to this approach is that you can subscribe to the lead feed and receive immediate updates on new leads as they are posted. Please, please, please give us feedback below regarding our proposal. Thank you. Anonymous cowards are welcome to comment as well!

Do you own a digital signage software or hardware company? Are you a member of a digital signage company whose sole intent is to create content for digital signage networks? Do you own and operate a local, regional, or national network? Regardless of your expertise or niche within the digital signage industry, we are looking for your writing skills! 

Benefits

Costs 

How do I apply? 

We will be accepting no more than twelve industry writers. That means space is limited. We also would like to get some flavor from across the industry. Meaning, we will not be accepting writers from more than two companies in the same industry sector. For example, those providing digital signage media players will not be considered if we already have two media player companies writing on the Digital Sign Post. To be considered for a position as an industry writer please submit requests to blog[at]digitalsignage.com. Please also send us some copies of written pieces created by the individual who will be writing for your company. Finally, those of you who are not accepted as guest writers, do not forget, any company can post their news story on the digital signage news aggregator by simply creating an account and submitting a story.

Some Housekeeping

Those of you who have been commenting on our news and blog posts may have been feeling a bit disappointed. Your posts were showing up in our database, but were not registering on the site itself. We are working to fix this shortly and those of you who have commenting, keep them coming. We want to keep the dialogue open and fresh. If you have any questions about this offering and what it means for you and your company, please contact us.

This offering will close at the end of March 2009. So, apply now to get the ball rolling.

A clash of the Titans. I can almost hear the MC: "In the red corner weighing in at a GDP of $2.79 trillion is the United Kingdom. And, in the blue corner weighing in at a GDP of $14.4 trillion we have the United States." That might be a bit weird, but it paints a picture in terms of digital signage deployments. It seems currently that the U.K. and Europe in general are spanking the pants (not the U.K. interpretation of "pants" which refers to underwear, but the Yank definition) off the United States. And, although the worldwide digital signage industry is still pegged to grow, it seems the United States is trailing, not necessarily in technology, but more in rapid acceptance. Similarly, I have noticed a trend in mobile marketing which mirrors digital signage. That is, the U.S. has dragged its feet more often in acceptance of new marketing methods. Media outlet acceptance is changing, however, especially in the wake of the world's worst economic dilemma since the Great Depression.

The reasoning: administrators are finally realizing that unmeasurable and expensive advertising campaigns are bunk. Specific, measurable audience targeting is how shoestring budgets have always operated and how the Internet has leveled the playing field for small and large business alike. And interestingly, with continual improvements in audience measurement, we will most likely see the acceptance of digital signage come in the U.S. faster than we think. Perhaps this is why a recent report by ABI Research claimed, in the U.S. specifically, that digital signage will grow by one third in 2009. And while this occurs, it is also expected (according to MultiMedia Intelligence) that overall industry growth worldwide will be steady for the next three years at about one third a year. In case you're slow at math, that equals a whopping 100% growth by 2012. And if you're even slower that means a doubling of the industry in 36 months. Not too shabby. Does this mean that the United States is forever to be behind in the digital signage race? Perhaps. China has had much wider acceptance of digital signage and is spanking the pants (this time I mean the U.K. version:) off of both the U.S. and Europe. 

How do the U.S. and the U.K. compare in technology and installations both overall and on a per capita basis? I have not seen the numbers. And, with the constant growth that is happening it may be hard to determine. Technologically speaking I believe we're currently getting owned. However, I'm sure the U.S. has the U.K. beat in overall installs, but my gut feeling tells me that per capita deployments may be higher with our friends flying the Union Jack. Population density plays a huge factor here. The "purple mountains majesties" and "fruited plains" put a wide divide betwixt the retail shopping malls, corporate towers, and transportation hubs of Europe. The Yanks are even more privy to these luxuries, but urban sprawl takes away the effect of targeted digital out-of-home when being out of home means hiking, swimming, and camping.

However, our "wide open spaces" means more digital real-estate with which to place our obnoxious lcd screen advertisements. And, with the way large deployments have been rolling out lately, I can see a digital Boston Tea Party in the works. Our U.K. brethren may soon exclaim, as did the Japanese Admiral Isoroku Yamamoto after his attack on Pearl Harbor, "I fear all we have done is to awaken a sleeping giant and fill him with a terrible resolve." Could this be true of the United States in reference to digital signage? Possibly, but first mover advantage--and in this case acceptance--could mean a laggard's catch-up. Our site's Internet traffic is only one indication of how the United Kingdom is well aware of the industry. After our first clashes with the motherland back in the 18th century, we have generally had good relations with the Brit's. Perhaps it's in the nature of American arrogance that drives us to say, "we want another revolution!"

Often individuals and companies rush headlong into decisions with a mind void of logical thought processes. Finding necessity above luxury is no exception. And, determining between wants and needs is often an extremely difficult task. Seldom is the conclusion decisively clear at the outset. If it were, there would be a literal overflow of demand. And supply--even in its current glut--may have difficulty filling the gaps. As such, there must be a convincing blow to settle the question once and for all: does digital signage produce a viable return on investment? As a caveat, determining a viable digital signage ROI does not answer the former question of whether digital signage is a luxury or necessity. That question is settled on a case-by-case basis. 

Frankly, proving a bonafide ROI can be difficult, which is why hesitancy still clouds the minds of media planners and advertising agencies. When solid ROI stats cannot be determined digital signage becomes a nice luxury piece, a bling factor that is worth its weight solely on "coolness" alone, a fact recently frowned upon by Paco Underhill. Stating that something should be implemented simply because of "cool" is synonymous with saying digital signage is a luxury item. However, numerous examples abound giving credence to digital out-of-home's ability to drive sales. Even more importantly, using digital signage as a corporate communications tool has, in many instances, proven a cost-cutter. If savings are realized on one end of the spectrum and sales are increased on the other than digital signage is most certainly a necessity. 

Establishing a Need

When attempting to sell a product, first you need to establish a need. Sounds straight-forward enough, but many companies are attempting to sell a "techie" product based on the technology alone. Practical buyers not only spurn the "latest and greatest gizmos," but look around them at the solid numbers. Without these, your sales may be as effective as selling a ketchup-covered digital signage media player to an 80 year-old woman in white gloves. It is simply not feasible. 

What is doable is showing various signage industry case studies, proving increases in ROI. They are as numerous as you might imagine. Practically every company seeking for traction in this space has a similar digital signage case study about increasing ROI. Keep 'em coming folks, but remember unless the practical buyer can really feel the ROI is meeting the road. He/she will walk. Especially in this economy. Additionally, although prices are still falling companies are often placing digital signage in areas where no signage--especially measurable signage--existed previously. That throws another variable into an already-complex equation. 

Selling the Sizzle, Not the Steak

Now here is where I contradict myself. The "sizzle" or "bling" factor is often the bait, but numbers are the real hook. Draw them in with the technology, close them with solid salesmanship and reporting. Simple as that. If you keep trying to woo them with "sizzle" alone, you're just teasing them with cotton-candy tactics. It's a taste-good sales maneuver that leaves prospects hungry and salespeople empty handed. Contrastingly, if you are able to talk about the "bling" benefits while knitting in actual numeros, you most certainly will see not only an increase in interest, but you will be able to show real benefit to digital signage. 

Luxury or Necessity? 

We have still not answered the question, "are digital signage displays a luxury or necessity?" I hate to say it, but it depends on a number of variables, including projected ROI (often a shaky variable itself), Return on Message (a term emphasized by MediaTile), and overall network purpose. There is an answer, but for me to go through and play out every possible scenario would be extremely nit-picky. It would also take an exorbitant amount of time. So, the brief answer is that it all depends. If you want to set up a luxury-type venue where digital signage adds to the ambiance of the locale, then ROI may not be as fundamentally important as Return on "Coolness." Such a retail installation is a rare species indeed.  In many instances, determining whether digital signage is necessary depends on what you want the signage to do. The term "digital signage" encompasses such a wide array of applications it is a dangerous proposition to use blanket statements. However, it is important to note that if you currently utilize static signage, looking into replacing it with digital should be a high priority, given that ROI can be measured by decreased costs and not P.O.S. increases alone. 

Recent reports still admonish vendors to be looking for growth. In fact, Monday's digital signage news brought in two articles touting industry growth. One stated that digital signage was to grow by 1/3 this year. The other touted the signage market at a 100% growth over the next three years. Effectively, they are not only giving numbers for good growth this year, but also steady growth for the following two. Interestingly, the articles had a hardware and software sales-lead focus. With the continuous growth promise, digital signage vendors are currently scraping the cream from the top of the market in many instances--effectively making a luxury item out of what could be an effective medium. And when, in cases where digital signage qualifies as a luxury item, cost is often everything.

If you represent a digital signage software company, implementing a software as a service approach to your offerings can be very beneficial. Utilizing "the cloud" hosted approach in any business scenario can be an excellent source for recurring and residual revenue. Interestingly, such an approach also holds other benefits as well, including overall cost reduction, easy scalability, opportunity for innovation increases, easier case-by-case implementation, greater capacity, and better security,

Cost Reduction

Simply put, cloud computing is paid in increments in an as-you-use fashion. As a result, the need for up-front cash to purchase expensive servers is eliminated. For most digital signage networks, "the cloud" method has some overwhelming advantages. Using a SaaS (software as a service) model for digital signage simply allows for lower information technology costs, increased economies of scale, and payment is required on an as-used basis only.

In the absence of a SaaS solution, you and you alone are responsible for purchasing and maintaining servers, housing them securely, and installing and maintaining the software. This alone would often require the full-time efforts of reliable IT personnel--a cost that most would rather expend on the "core competencies" of their business. In addition, when service fees are charged on a metered basis, it means you only pay for what you use, saving you valuable resources in the long run. Finally, cloud computing means you benefit from multi-tenancy. Multi-tenancy is the use of many different applications from multiple clients being used on the same unit of software. Accordingly, efficiency is the name of the game when it comes to cloud computing.

Capacity and Scalability

Similarly, cloud computing allows for scalable network growth. For instance, as your network grows your space on "the cloud" can grow accordingly. Scalable network growth can be crucial for smaller advertising networks to grow on an as-needed basis. For smaller "bootstrap" digital sign networks, a SaaS solution is often crucial for slow growth. As hardware is incrementally added to the cloud, the server usage can be readily enlarged so that throughput under an increased load does not slow or otherwise decrease server efficiency.

Signage companies can store and schedule much more data on "the cloud" than most individual server networks could otherwise. This may seem somewhat obvious, but is vastly important when we start talking copious (I love that word) amounts of HD video that could be housed for deployment to your network. With helpful tools such as file-recognition software and role-based administration, you can also more easily ensure that redundant data is avoided. This again increases efficiency and even more server capacity.

Increase in Innovation

When server updates are not a chief concern of network operations personnel, innovation in other areas can become a primary focus. It's a simple issue of core competency focus that applies to Adam Smith's theory of the "Invisible Hand": "If I focus my time on my core competencies and you focus your time on those things you do best, the community as a whole benefits."  No longer does the organization have to spend time working on a server, scrambling for updates and working on maintenance. That is taken care of by the cloud managers, allowing for more innovation within your own organization. Keep in mind, this not only applies to innovation, but also to the other workings of your enterprise. Freeing time otherwise spent on server maintenance to focus on what you do best, will increase your productivity and profits across the board.

Ease of Implementation

Without the need to purchase hardware, software licences or implementation services, a company can get its cloud-computing arrangement off the ground in record time — and for a fraction of the cost of an on-premise solution. A majority of the cost of digital signage servers is the initial purchase and implementation fees. Such fees can often be substantial. Servers, cabling, and implementation of a large server

Security

It may be even more obvious to go over how general security of a network is important in digital signage. However, it may be very important to point out how SaaS can be beneficial in such an instance. For starters, having all the information on the cloud reduces the need for annoying redundant security testing at multiple sites, cutting the overall cost of security testing for passwords, and cracking substantially. Second, having all your data in one central location reduces data leaks and losses. Instead of caching data on various smaller devices, where data control and disk encryption standards often aren't enough, you can rest more easily with the data on the cloud. Boy, does that sound "big brother" or what? But, in reality, it's very true.

Redundant server farms for hosting large and small digital signage networks, complete with role-based administrative access will truly provide ease of use for huge and minuscule networks alike, giving more opportunities for growth and expansion for others wishing to start their own digital signage advertising network. Otherwise, they will be consigned to purchasing, managing, and monitoring their own servers--a task that can take time away from other important matters, like expanding the size of the network in general. Who wants to be blamed for slowing network expansion?

For more information on the benefits of "computing on the cloud," please visit the following websites:

Link 1, Link 2, Link 3

Many times when I talk about digital signage functionality and content, some folks are still surprisingly unaware of what RSS is and how feeds actual operate. Understanding Really Simple Syndication (RSS) is important, and not primarily because of its application in RSS tickers alone. XML and RSS give opportunity for information gleaning and sharing using multiple facets. I cannot imagine what the world would be like without the instant gratification of online news, moments after it occurs. What an atrocity that would be! Information, real-time, is what people seek. The problem is not that RSS is not flexible, the real problem with RSS is that it can be used for in a wide array of applications apart from scrolling crawlers. Most don't understand that RSS can be used for automatic syndication of nearly all types of content--giving you automatic relevant "stuff" for your digital signage applications. Not surprisingly, this form of auto-generated content is a uber-beneficial way of filling "digital signage content gap" I've read so much about. It is a square peg for a square hole. Really Simple Syndication reminds me of digital signage for a couple of reasons. First, RSS is sometimes "painted into a corner" because we fail to fully realize the wide array of applications the technology affords. Secondly, both RSS and digital signage applications can be so encompassing and extremely broad that we sometimes lose site of possible opportunities right under our noses.  And, as a result, we end up pigeonholed.

If you keep up with industry trends, you'll notice some companies truly starting to utilize RSS for its full capabilities. In reality, I only really know of one company who has an "out-of-the-box" solution for dynamic signage content via RSS: Screenfeed. Screenfeed offers dynamic RSS generated content, pulling from multiple sources. I have spoken with another company still in development of such an application. They're working on a dynamic RSS generator that will allow content to be pulled from social networking sites like Facebook, MySpace, and YouTube--much like the LocaModa folks. Their particular idea revolves around not only user generated content, but also relies on users to filter irrelevant or negative content. My initial reaction was revulsion, knowing that such a system would allow for explicit content. I guess the only way such a system would be viable is on a network with a large enough volume where economies of scale could work effectively. Of course, such a system also only works on the assumption that the "majority" of people will do the right thing. Still, I'm leery. This could be an instance where UGC completely fails.

Personally, I've never been a fan of bottom-of-the-screen crawlers. The only time they just might be effective is when you're sheepishly waiting for a root canal and don't have any interest in reading Field and Stream. You might say, "oh look, stock quotes...that'll numb my brain prior to the procedure." I don't remember if it was at InfoComm or the Digital Signage Expo, but I remember how proud and emphatic one vendor was over his ticker. "Look," he said, "unlike our competition--X, Y, and Z--our ticker flows nice and smooth. Look at how smooth that is!" Now that's product differentiation! Tickers can be effective, but scrolling tickers get on my nerves. And when you truly understand the capabilities of RSS, having a RSS ticker seems disgustingly "90's CNN."

When it comes to digital signage, the Web, SMS, and syndication, we are a long way off from where we could and need to be. RSS for audio, RSS for video, RSS for dynamically created flash weather and stocks, and RSS text may well hold the key for refreshing and dynamic content for digital signage going forward. Think of current tweaks used for feed use. One very prevalent example is Twitter. Twitter, and the emergence of micro-blogging, has done a great deal for aiding in the prevalence of RSS--sometimes to the point of inundation. But, regardless of how it's done, RSS has not nearly been tapped to its full--both on the web and out-of-home.

After looking at the multitude of digital signage vendors at the expo, I started to wonder how they were all doing. If you were there, you may have had similar thoughts. And rightfully so. Over the last few months I have read countless articles about how digital is going to outlast the recession, replace traditional mediums, and make me breakfast in bed. I have a sobering question: do you really think if we added up all the viable industry sales leads that we would be able to feed all the companies present in the industry? Viable, in this case, means leads from places other than Nigeria. I don't mean to be doomsday-er, but the answer to the foregoing question is an overwhelming no. I realize there are many different segments, where different business models will suit a specific end, but once you go through ten demos, you'll realize the differentiation between products is minuscule.  And even in the event of wide differentiation, lack of marketing and branding can cripple even the best solution.

And, with so much industry hype, it seems we're still seeing industry entrants. I still receive an occasional call wherein someone who has recently lost their employment (which I always hate to hear) is looking into how they may leverage past relationships by selling digital signage solutions. This is a great route, but it won't fill the necessary lead pool of every industry Johnny-come-lately. I think those in the industry can't not afford to ask themselves a few more questions regarding their sales lead pipeline: 

1. Where are you getting most of your sales leads?
2. What type of marketing efforts are you implementing to glean leads via the Internet? Google/Yahoo/MSN pay-per-click campaigns? Banner ad buys? 
3. Do you have partners handing you leads? 
4. Are you gaining leads from Networld Alliance (The Digital Signage Association and DigitalSignageToday.com), partners, distributors, and/or tradeshows?
5. From which of the aforementioned sources are you gaining the highest return on investment? Have you even calculated those numbers? 
6. From what source do your MOST qualified leads come from? 

I'm asking these introspective questions, not to be a smart-alec, but to sincerely open the eyes of industry hopefuls. Yes we're growing, but some at the expense of others. Digital signage is certainly here to stay, but companies will come and go. The next time I hear a press release touting the elasticity of our industry, I'll probably stand up as the pessimist and say, "yeah, but not for everyone." Such releases are often only aimed at creating industry buzz and driving traffic. Which they do a good job of, but they also futilely attempt to paint an all-too rosey picture. If a "self-fulfilling prophecy" is what you're after, find ways to squeeze more leads from your partners and marketing dollars. Don't rely on hype-creating industry press releases. They're simply used as placebos for the poorly equipped marketer.

DSE is always a great eye-opener. You are able to analyze your competition, view the latest and greatest interactive app, brush shoulders with some great people, and get more educated. Since attending my first expo a couple of years ago, I have been waiting for a few things to occur that have not yet. Specifically, I have been waiting to see a drop in price in those offering software as a service (SaaS) solutions. Yet, I'm still seeing a recurring trend among digital signage vendors: the software is overly expensive. And, even more so, given our current economic situation.

Digital signage, although proven in many cases to lift ROI, engage customers, and provide an overall benefit, is often a luxury item for many institutions. Yes the prices of LCD televisions have dropped substantially in the last several years, but the software for digital signage remains exorbitant. Let me give some examples. The expo still had folks peddling SaaS bundles for a single screen from $60 to $100 a month. You're kidding right? A single screen without content creation, content management or any other bundled services? Of course, when economies of scale come into play, we can widdle that price down a bit, but seriously give me a break!

It's once AGAIN the "chicken vs. the egg." You could easily sell such a pricey solution to a company who had a solid long-term media buy in hand. Easily. But from my narrow perspective, digital signage vendors at DSE are still scrambling for business from the same customers. It's still a dog-eat-dog, ocean of red, knock-down-drag-out swirl of competition. We would like to all be friends (it's certainly in my nature--I don't like to offend). However, we're all at the same shows and on the Internet, competing for face time with the same crowd. If that is not competition, fill me in. And, I find it painful, yet interesting, to see the prices companies are still charging for hardware and software. The margins are still ridiculous. Perhaps that's why digital signage is still considered a "growing" industry, even in our current economy.

Interestingly, and perhaps to their advantage, those selling the solution outright to companies willing and able to manage their own networks are finding a growing niche. The generally trend: purchase a server, buy the media players, and pay a minimal "annual maintenance and support." This works especially well for companies looking to install and manage their own private network. In such a case, the vendor handles support for the software and hardware, but is hands off for hosting, content creation, and asset scheduling. For integrators and small, local media companies working on a citywide, self-sufficient network, an entire system purchase can be more price conscious than they might think.

And the general trend for server purchases? I have seen ranges between $5k and $20k. Big spread. But from what I could see, the stark differences made the price gap worth the hike. The media players on the other hand don't show vast differences in functionality. Most work as simple playback devices for content and content schedules. The difference in price is quite a contrast, however. Does $250 vs. $3,500 paint a picture for you? Quite a broad differential. But, of course, there are still differences in functionality with those price ranges, and Cadillacs generally don't run near $250. However, the broad price-gaps have keep you wondering, "what could make the players that much different?" Finally, what is an industry trend for maintenance and support on such a system? 10 to 20 percent of the initial software/hardware price annually is a fair estimate.

Now, contrast these numbers with a hosted solution at $100/month (a price many companies are still charging on a per media player basis). In this case, you still have to pay approximately $1,000 for a player, but your recurring fees require you to "bend over and take it." Your ROI crumbles when you crunch the numbers. Let's say you're only doing 10 displays (which, by the way, is going to be the size of many networks going forward). In the case of 10 players, you're not at "bulk" volumes yet so you're not eligible for a monthly discount. You're up front cost is $10k for the players with recurring costs of $1k monthly. In the case of a $5k server purchase, your ROI on a decent low-end server would have been five months with this particular example. An ROI of five months makes the expensive hosted model look like a ride to the cleaners.

Now, without bashing too much on hosted digital signage solutions, I just need to clarify, by saying the following: unless you are offering content creation services, content scheduling and overall management of the network, simply hosting one media player for >$60/month is going to price you out of the market for many customers, especially as digital out-of-home moves mainstream. Just because digital signage has predicted growth in a bear market, does not mean you can charge rapist prices to eak out the margins. Contrastingly, it means the opposite, the overall market will drive digital signage, meaning your prices need to adapt, or you'll price yourself out....of home.