Digital signage continues to find new uses and markets and one of the largest and most significant is in the Digital out of Home (DOOH) field, where last year the international outdoor sector was worth $3.5 billion, double that of the year before and it is expected to expand.
Whiles still a lot smaller than the indoor market, there are more opportunities in digital outdoor signage. Outdoor advertising is certainly not a new industry but the static street signs and posters are now being replaced with new dynamic versions. Electronic billboards along roadsides and screens used in stations and airports are becoming commonplace, helped largely to the increase in outdoor specific display technology.
The global economic problems had forced many companies to cut back on costs and spending and some signage companies are experiencing lengthy sales but interest in digital signage is growing greatly. One of the main reasons for the sudden boost to the industry has come due to the reduction in cost of plasma and LCD screens.
High brightness screens, outdoor LCD enclosures and improvements in networking have meant that placing screens outdoors is no longer as challenging a task as has traditionally been.
Many low power-consuming devices have also aided the digital outdoor signage market, as screens used in outdoor advertising are generally required to operate 24 hours a day without downtime so low powered systems can provide a cost effective system. These include ecologically compliant panels, low-power LED backlight panels and nascent auto stereoscopic 3-D displays.
Demand for digital signage systems have revolved around public display areas such as in airports (the Larnaca, Cyprus and Johannesburg airport development), cinema complexes and in many retail outlets. New signage systems are emerging in financial service branches and transport locations such as subway stations (the state of the art Tokyo development).
International research on fast food sales boost
Research also indicates that digital signage presents a good ROI in closed environments where a captive audience is exposed to digital signage.
Much higher sales uplifts have recently been reported by the US clients of Allure Global Solutions, the digital out-of-home technology supplier specialising in the leisure sector. The company used sales uplifts to clinch a deal for digital menu boards at the Georgia Dome stadium in Atlanta. The venue’s 55 concessions, operated by Levy Restaurants, have now been outfitted with 216 LCD screens showing menus and full-motion video spots – as well as crew training after hours – following a pilot last year at three outlets.
That pilot, conducted across an underperforming outlet, a normally performing one and a flourishing one, showed double-digit sales uplifts when compared to the previous year’s figures for the same locations.
In addition, the 80,000-seater dome will be looking to maintain that boost to business by using the 42-inch displays to target the catering needs of each event’s distinct audience. The stadium’s concessions can change menus at stands on an event-by-event basis. For example, last year for the U2 concert, Levy changed a large stand from a full food-service site to a bar and then changed the [digital menu board] back instantaneously.
Industry integration vital
Hardware and software companies in digital signage are seeking more integration possibilities of digital signage such as web cameras, POS, ATM, RFID, Bar core, Bluetooth, GPS, 3G, face recognize, gesture API, multi-touch API and 3D. Therefore, digital signage is not just a commercial film player but also an interactive communication station. This means the market of digital signage is not just developing but also exploring.
The Digital Signage Conference, held in California in August 2010, pointed out to delegates that the market is generally considered to be highly fragmented.
For the flat panel display industry, digital signage is one portion of public displays, with different display technologies being used at different locations and for different applications. Application examples include use at the point of decision, electronic pricing labels and shelf talkers can be used to influence buyers on the spot. Technologies in use include electronic paper displays, passive matrix LCDs and small digital picture frames all used as print or self-contained shelf talkers.
At the point of purchase, displays are used for advertising in the queue. Here medium-size LCDs or desktop sized monitors are often used. Additionally, many of these displays are transitioning from commercial grade monitors to industrial LCDs. For general awareness, information, and advertising large-format digital signage is moving into place. Here plasma displays, large-format LCDs, and rear projection screens exhibit the content. Finally, outdoor applications for digital billboards are using LED, large-format LCDs and plasma displays.
The entire value chain is characterised by a very high manufacturing complexity. Sections of the value chain are invisible to most companies participating in the digital signage market. The various knowledge bases involved in the manufacturing only define part of the product’s marketability. How it is sold and how it is used also defined the signage product, so the sales and installation channels are just as important as the manufacturers'. The applications require that the entire value chain—vendors, distributors, installers and integrators—supply a complete solution to the end customer.
Future of digital signage
Future technology enhancements will include 3-D and touch capabilities. The displays are starting to show up with auto stereoscopic imagers are not moving into high-volume due to technology limitations. Touch is increasingly being used as a way of increasing the value of digital signage and learning more about customer's interests. Projected capacity and other touch technologies as well as gesture recognition are needed to overcome the distances of larger displays that are sometimes not directly accessible.
However, digital signage is not the only reason people are taking screens outdoors. One of the unforeseen effects of the smoking ban has been the growth of outdoor TV screens, many of which use similar technologies to the signage market.
Therefore, whether it is outdoor TV entertainment, digital advertising or information provision - outdoor screens are continuing to increase in both technological terms and quantity.