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.