If you couldn't already tell, I receive the word of the day from Webster and spend some time attempting to increase my vocabulary. Let's increase our vocab together this week by taking a gander at the definition of a partnership: "a relationship between individuals or groups that is characterized by mutual cooperation and responsibility, as for the achievement of a specified goal." That sounds mutually beneficial. The issue with partnerships is not in the idea, but in the execution. Guy Kawasaki puts it in this way: 

"'Partnership, noun, a relationship between two parties that does not increase the profitability of either.' If your partnership doesn’t cause you to edit your Excel spreadsheet, it’s meaningless. Focus on customerships, not partnerships if you want to succeed. When you’re a big, dumb, slow-moving company, then fabricate all the partnerships you want."

Partnerships are Not Evil

Yes, today I'm playing as an advocate for the devil, so you can take some of what I say with a grain of salt. However, Some of what I have to say can be rendered very applicable. How many times have I seen partnerships entered into, contracts drawn up, NDAs signed, and websites littered with "partnership" status, but nothing changes? Partnerships work most successfully in the following scenario: mutual consideration, give-and-take, goal-setting, and strategy interwoven into both partnering entities. When this takes place, great things happen. 

There are many benefits of partnerships which I feel are worth enumerating, lest people think I'm off my rocker. Let me lay down a few that come to mind. 

1. Core competencies become the focus. In any market segment, there are those who may consider themselves competition, but who may fail to realize they are differentiated enough to benefit from one another's strengths. Partnerships can have such an effect. Partners can focus on what they do best, while letting their cohorts take the reigns on projects more suited to their skill sets. 

2. Responsibility sharing. In the words of Samwise Gamgee, partners help to, "share the load" of responsibility. Often the work needed to be accomplished is much too complex or large to be shouldered by one organization. Why not partner up and allow someone else to help you out. 

3. Resource sharing. A partner may have access to a resource heretofore inaccessible to you. If this is the case, saddling-in with an organization that can fill the voids can be very beneficial. 

4. Information exchange. You may know much more than your partners do. In turn, their niche may be a place you fit, but for which you know nothing about. Partnering can help you "break into" the knowledge nooks needed for you to succeed. 

5. Cost Reduction. A concurrent benefit to knowledge and resource sharing is reduction in expense. Share the burden with someone else, share the expense with someone else. 

6. Risk mitigation. It is a wise move to hedge your bets. Partnering with firms can aid in reduction of not only cost but risk as well. 

Since 2007 we have seen many ad networks fold up shop after they spent 6 months scrambling to form partnerships with other local and national networks in an effort to aggregate and share revenue. And the survivors included those who already had some DOOH in their pockets (pun intended). In fact, we have been seeing some great strides being made by leaders in the ad network aggregation sector of this industry with the likes of Adcentricity and SeeSaw. But unless you're convinced that a partnership with a particular organization is in your company's best interest, it will be most beneficial to focus on what Kawasaki refers to as the measurable "Excel spreadsheet." 

Focus on Customerships 

Unless you have already exchanged or hope to exchange leads with a partner for some tit-for-tat receipt of some other service or good, then a partnership generally makes no sense. What are you gaining, or even farther stretched, what do you hope to gain from a partnership? If you are doing it for no other reason than "name dropping" or in attempts to have a "puffer fish" display, then it may be wise to rethink your tactical approach. On the other hand, if partners gain real leads and real business and help you reduce cost, then roll with it. 

Otherwise, focus on customers, visit and interface with people, fill the pipeline. That is, if you want more revenue more quickly. If revenue is not a big deal to you, you may want to start beefing your resume, because revenue is probably a VERY big deal to your organization.

Can you remember when the Internet was solely a directory of information? I remember using Yahoo in 6th and 7th grade and all it was then was an Internet directory. The Internet is made up of thousands of online directories, both general and niche. Our niche digital signage directory was a project we tackled for our benefit and yours. We wanted a place to go where we could reference all the companies in this space. We realize there are even several other quality signage directories available, however,  we've made our directory searchable by category and even by state. So, if you do not want to go very far to find a provider it's easy to find one locally. 

Occasionally we receive requests for directory changes, updates and additions. Lately, we've added approximately 34 new companies, thanks to input from our site users. We appreciate the input you have so readily given. If you have suggestions, or would like to learn more about sponsorships and/or live links in the directory, please contact us.

In digital signage—or any business venture—return on investment is meant to give a quantitative method for seeing whether your pilot and proposed project will be worth its weight in gold. But there are often less quantifiable aspects of a digital signage installation that may have equal, if not greater, sway on whether your implementation can be considered a success. The struggle is finding what the qualitative data is, how you can successfully measure it, and when it becomes workable enough to aid general ROI or even trump quantitative data.

The statement, “it really all depends” is not what network operators wish to hear, but it is often the best answer when the question, “how do we best measure qualitative data on our network?” But soft data really requires understanding your signage network goals. Were I to delve into all the possible desired outcomes of any of the thousands of networks, both small and large, it would require a treatise or thesis of considerable length. To keep my posts under 1K words I’ll let you determine your end goal(s).

Whatever your desired outcome, it is important to begin with the end in mind. During the pilot stage and throughout the final deployment you should always be asking yourself, “what am I trying to ultimately accomplish here?” Return on objectives (ROO) requires a regular network analysis that answers this and questions like it. Here are a few questions you may ask yourself when looking to determine whether your soft metrics are giving you the ROO you desire:

• Is your network looking for ambiance or a solid return? In other words, is it a luxury or necessity? 
• Do you want your signage to work as a wayfinding device?
• Is your out-of-home solution looking to increase customer satisfaction?
• Are you looking to engage your clients via an interactive sign? If so, how do you intend to leverage the uniqueness of that sign to gain data? 
• When looking at demographics are you targeting the niche you wish at the time you want? 
• What is the general reaction toward your deployment?
• What methods are you currently using to measure your ROI? Are they working to your liking?
• Is your entire ROO (Return on Objectives) based on your numerical ROI (Return on Investment)?
• How are you measuring your ROM (Return on Message)? (originally termed by MediaTile, who published a great whitepaper on this methodology)
• Are you under time constraints? If so, what are they and what barriers are halting your progress?
• If you run an advertising network, how are you generating not only proof-of-play reports but how are you also reporting ROI to your clients? 

Two industry growth reports were released this week, one by DisplaySearch out of Texas and the other by Goldmedia out of Germany. DisplaySearch boasted digital signage would have a 20% CAGR through 2016, while Goldmedia claimed digital out-of-home in Europe will quadruple in the next five years. Generally speaking these are reassuring for future growth and are great for incentivizing venture firms, but are we relying too heavily on venture-funded growth?

Based on the reports, most of the growth is in hardware/software investment. Displays, media players, and peripherals will aide the industry in it's growth forward. While the media planning segment of digital signage waits for the industry's onset of puberty, hardware and software vendors seem--at least currently-- to be having all the fun.

Our good pals at the Digital Signage Universe posted a piece outlining some of the take-aways from Strategy Institute's Digital Signage Investor Conference. My take away: venture capitalists are seeing the "potential," while not yet seeing the self-sustaining revenue of a mature industry. Certainly investing in potential will help spur growth, but what about organic growth? Where are we on the organic growth spectrum?

Think for a moment about all the consolidation that is currently taking place as well. Networks are being snatched-up, mostly with venture funds. Bill Gerba did a great piece on recent mergers earlier this week. Consolidation is not unique to the digital sign industry. We are certainly seeing widespread mergers in many industries. However, now is the time when those who can show they're "in the black" can make a killing from inpensive aquisitions using venture funding. A steal of a deal!

My only concern is that we are still relying on Daddy Warbucks and not weaning ourselves off the paps of venture capitalists. How long will this last before venture firms can say, "enough is enough." Gerba speaks of organic growth from within and inorganic growth from our venture friends without. If we were to throw out a percentage of venture vs. internal growth within the industry, what would our numbers be? 70/30? 80/20? I tend to side heavily with the venture folks, at least for now.

It's easy to see what is happening. But when will the self-sustaining maturation train roll in? How many more absorbtions will it take before critical mass can turn a critical profit?

Those of you who have seen the film "Planes, Trains, and Automobiles" with John Candy and Steve Martin know what a headache public transportation can be. Any type of mass transit system can benefit from digital signage. There are countless inefficiencies in public transportation, many of which are the result of communication failure. When I was at Digital Signage Expo East last year, I was briefly lost underground Philadelphia's subway system. It was not for a long time, but 10 minutes to some could mean a great deal depending on real and perceived time constraints. Hence, digital signage in the transportation sector can often be a necessity. 

Digital Signage as a Transportation Wayfinding Tool

The use of digital signage in the transportation sector is truly in its infancy. This sector is still largely untapped. My initial contact with a very specific niche leader in this space happened about two years ago when I met with Mike Draghici, the President of Seattle Digital Signage. Draghici's company has a "home grown" software solution they've installed on numerous taxi cabs throughout the city. Their system integrates with GPS for both wayfinding and advertising purposes. 

I currently am aware of several RFPs in the United States issued by major state-wide transportation organizations. In most cases, these RFPs are too large and too far-reaching in their requirements to be fulfilled by a single company. Digital software and hardware act as a very small component to the entire system, especially when the orgs want GPS to track and report the precise location of cars and carts changing speed and direction regularly. Such systems' complexities require unique software fits often not had in our industry. 

Digital Signage as a Transportation Advertising Tool

Of course we know digital signage can be used for advertising. In fact, it seems getting major media buyers/planners in on the digital signage bandwagon is what the industry is currently pushing for. In the case of transportation, however, major buyers are not necessary. Seattle Digital Signage is a great example. Because Draghici and his team have created a system that knows where the taxis and buses are, they can specifically target for businesses within a block radius of where the car is located. This makes for an easier advertising sale. Think about the pitch, "oh, and your specific ad will display as a the businessmen drive by your establishment, creating two impressions for your business: the impression of your establishment itself and the impression of the ad in the car." Effective indeed. 

Integrating the software with mobile phones can allow an advertiser to send out coupons to business travelers being transported within a city. While travelers are only availabe for a limited time, it is a great method for targeting a one-time customer. SMS mobile coupons can also give such advertisers a boost to their resultant ROI measurement. 

ADA Compliance

Let us not forget that public transportation often requires compliance with the Americans with Disabilities Act (no, not the American Dental Association). This means the signage not only must be able to be seen by passersby, but also heard. This requirement often eliminates a good chunk of the possible vendors seeking to win the bid. The ADA Compliance document is a 92 page treatise on what is required to make any system, building, or venue in observance of the standards. The document includes information on audio vs. visual requirements for the deaf and blind, including placement of such devices for the disabled. Such requirements are overlooked, but are of extreme importance. 

Benefiting Transportation Sectors 

Taxi cabs, trains, buses, planes, golf carts, and even horse drawn carriages may all benefit from digital signage--both inside and out. I spoke with a gentleman a while back who was running signage on his pedicabs. In most cases, stations where people wait for such transportation, are more beneficial for wayfinding than the signage inside the cars themselves. Why? Because wayfinding signage helps passengers be where they need to be, when they need to be there. Once they are on the trolley or the train, they are more apt to relax and look at advertising --unless they have a connecting tram or flight. In the event that the passenger does have a connection, the signage can alert them when to get off and where to go. In the instance when the signage is integrated with GPS, it can display precise times for destination arrival. 

As we continue to see integrators vy for installations with transportation operators, we will see much more integration of software that was heretofore unrelated. In reality, digital signage itself is an marriage of AV and IT. Integration will continue to increase the complexity of these systems. Simultaneously, it will be great to numerically measure the increase in efficiency these systems will create. The future here is all-to-exciting! 

How have you seen our industry benefit the transportation sector? In what ways do you see a greater penetration to this niche?

The forgoing question is often foremost in the minds of those who initially start "poking" into our industry. In fact, one of our greatest duties is evidential proof of our industry's necessary existence. Otherwise, our extinction is eminent. Continuation of budding industries are regularly scrutinized and questioned. And, rightfully so. Providentially, we've the case studies and numeros as a foundation for selling the pleasant idea that digital signage works. Gaining a unanimous conviction from executive champions and tight-fisted SMB owners that we are viable is yet another Everest to pass in our maturation process.  

While we must get past the simple idea that digital signage is more than just a luxury, ideas are ultimately the nail securing the coffin. I really like the way Napoleon Hill put it, "master salesmen know that ideas can be sold where merchandise cannot. Ordinary salesmen do not know this — that is why they are 'ordinary.'" Mr. Hill was most likely referring to ideas as business plans or better methodologies. Much of what digital signage vendors have been attempting to do is sell the idea that place-based media works. Unfortunately, we not only have to step up to the plate in "showing" that the technology is value-added, but we also necessarily have to knock it out of the park. How many of your leads have dried up over the last few months because budgets did not make room? Further still, what can the industry do to ensure we're being more convincing of the effectiveness and the necessity of digital signage? Salesmen need to believe in their product. That said, perhaps the fault lies in our disbelief that our medium is legitimate.

If we do believe it, like many of us certainly do, it's the next big push to get "them" to believe it. This can sometimes be difficult when companies have difficulty justifying the capital intensive outlay for hardware, software, and content is often hard for companies to justify. And, sometimes harder still is presenting and convincing C-level personnel that this medium not only has a viable ROI, but that it ups the value-added for their institution.

When is digital signage a luxury?

First, let's define a luxury so we can more explicitly understand and be on the same page:

lux-u-ry [luhk-shuh-ree, lough-zhuh-] : a material object, service, etc., conducive to sumptuous living, usually a delicacy, elegance, or refinement of living rather than a necessity: Gold cuff links were a luxury not allowed for in his budget.

Digital signage is a luxury when limited data for measurement makes it difficult to show a resulting quick ROI from a deployment. Digital signage is a luxury when the sole purpose of its installation is for ambiance rather than solid monetary return. ROI is a more difficult master than ROO. In summation, digital signage is a luxury when it becomes a liability rather than a revenue-producing asset.

I'm personally a bit curious as to how many current digital sign installations would be considered luxury installs. Sadly, I think more often than otherwise digital signage is installed without a plan, which results in a pretty, but ineffective LCD advertising screen. We have seen many ad-supported networks fail due to a lack of understanding of what they were getting into. They bought into a luxury item, when what they needed was a defined necessity.

When is digital signage a necessity?

Again, a definition can best start us out:

ne-ces-si-ty [nuh-ses-i-tee]: something necessary or indispensable: food, shelter, and other necessities of life.

If we take the most scrupulous stance on "necessity" we could easily say that digital signage is always a luxury item. It certainly does not resemble--in any way--food, shelter or any other life necessity. It does, however, in many instances stand as an indispensable mix to a larger desirable agenda. And oftentimes the difference between a luxury and a necessity is highly situationally dependent. For instance, are winter gloves a luxury in Hawaii during the summer? What about on the K2 summit? Do you think you would need them then? Digital-out-of-home operates similarly. When sales are dependent on a digital billboard it may pose more of a luxury. If the signage sits at grand central station, informing passengers of arrivals and departures, "necessity" can be the adjective used.

The preceding examples are compelling and obvious. But, what about the grey areas, where we're not able to see where the definitive line between luxury and necessity lies? This is where internal signage champions must determine the following to ensure their network will be a performing asset.

1. Goals. To ensure a project is a viable necessity, your team must determine what that you wish to accomplish with the use of your network. You must set goals for returning revenues, levels of customer satisfaction, sales increases, and overall ROI, ROO, ROM figures that would justify the investment in a signage system.

2. Pilot. Pilots are the proof, by statistical inference and extrapolation, that can give your project wings to fly. By running a limited pilot program for several months, you can not only test the particular system you will be installing, but you'll also be able to see if--in the microcosm--the idea works as a necessary addition to your media and technology mix.

With numbers in a hand, you can now champion your project straight to the top, passing Go and collecting your $200. Patience may be a virtue worth having, but with time your project will take shape as a company necessity, rather than just a luxury. In fact, as dynamic digital signage continues to replace its static "red-headed step brother," those not using the medium will--by virtue of their speed to market--realize the necessity of digital signage when all the competition is gaining while they're falling behind. Let's just hope that, for most, this doesn't happen too late.

Week's Lead Count: 30

Total: 188

laconic  \luh-CON-ic\  adjective 1 : using few words; expressing much in few words; concise: a laconic reply.

I am going to try and keep this one short and sweet so all you Patriots can have a splendid Independence Day celebration this weekend. Those of you in the United Kingdom: I'm glad we've overcome some our differences in the last 200+ years. 

There have certainly been some interesting stories that have crept in this week. My personal favorite was the custom 360 LED by Barco for U2's World Tour. The display contains over 500,000 pixels and is boasted to be the largest display ever taken on any tour. Willie Williams, U2 show designer, said about the display: “Video is the most powerful tool you can have on stage. But now that video is so ubiquitous in rock stage setting, we needed a very extreme change of canvas to be heard. The transformable LED gave us the chance to create a transparent 360° moving video element, unprecedented in this industry. It is the icing on the cake on this design.” When you are U2 you can do these sort of things, I suppose.

Dave Haynes decided to break out of the pack this week with his debut of pressDOOH--a media and communications firm for the digital signage industry. This was not surprising after our brief rendezvous at InfoComm 2009, wherein he said he had been kicking around several ideas for branching out on his own. There will always be the need for relevant content as there's always a paucity of great written content available. 

IDklic continues to roll out the Pharma Network in top Belgium pharmacy chains. My post on dental digital signage was somewhat providential given the subsequent IDklic press release. The medical sector has, in the words of Karen Carpenter, "only just begun." CEO of IDklic, Jean-Charles Figoni, echoed these sentiments when he stated, "We believe that digital signage has great potential to create additional revenue streams for a range of brands and retailers." Not only is this release interesting due to the niche, but it's also of interest due to the claimed quick ROI of 12 to 16 months. Slammin! We'll, of necessity, need to pay close attention to this sector as it continues to grow.

Finally, it looks as though Simage has been able to eek out some additional funding. The total tune: $1.4 million. Now what are you going to do with yourselves? Simage, like eCast, is targeting the bar, lounge, and restaurant crowds. After all the casinos, this seems to have been the next big "hot spot" market segment vendors have been jumping into. 

Thank you for posting. I hope you enjoyed this week's digital sign news, and a happy 4th of July to everyone!