The Digital Signage system is commonly referred to as a network of digital displays used to display information. This information can be in the form of a photo, video or text. There is no generally accepted translation of this expression in our country and you can find the options “electronic sign” or “electronic scoreboard”, which are most often of an advertising nature.
Digital Signage systems appeared in the 90s of the last century. Huge and expensive monitors with cathode ray tubes were installed instead of the usual billboards. “Electronic scoreboards” began to actively spread already in 2005-2006. According to Oliver Schwedt, general manager of the association OVAB Europe (Out-of-home Video Advertising Bureau), the effectiveness of these systems became apparent only in 2009. According to him, the growth of the Digital Signage market today is 30%. This growth rate in the industry is second only to mobile advertising.
Digital Signage displays can be located both indoors and outdoors. Experts have identified three main groups of places for their placement:
- These are various points of sale (Point of Sale) – shops, restaurants, cinemas, branches of banks and insurance companies.
- Points of waiting (Point of Wait) – these can be hospitals and clinics, schools and universities, lobbies and offices.
- Points of transit (PointofTransit) – this includes airports, train stations, as well as streets and squares.
Advertising is far from the only area where “digital displays” can be successfully used. They can be used to display socially useful information such as weather, news, exchange rates, schedules, or corporate information such as company news or meeting summaries. It is also possible to broadcast any entertainment content.
One of the significant advantages of “electronic signage and display” is the ability to dynamically change the displayed information depending on the time of day and location. For example, changing the menu in cafes and restaurants for breakfast, lunch and dinner, or changing the train schedule at the station.
The Digital Signage system itself consists of the following components: these are display means (displays), media players, a connection infrastructure and a content management system.
According to Intel’s forecasts, by 2015 there will already be about 22 million Digital Signage screens controlled by 10 million players in the world. This growth is facilitated by a reduction in the cost of displays, a decrease in their size, the emergence of more advanced and functional players, as well as the ability to transmit a video signal using IP and Ethernet networks.
Representative of the OVAB Europe Association, Florian Rothberg says that for most people Digital Signage is only about placing large video screens or video walls. Although in our time, it is small, 7-10-inch displays that are widely used. They are installed mainly in retail outlets, beauty salons, as well as in buses and taxis.
You can also find quite unusual applications. For example, virtual fitting rooms. Denis Zeltser, director of development at VIVID Interactive, said that until recently the idea of such a dressing room seemed unconvincing, but today rapidly developing technologies make it possible to transmit a better image, which is more and more like what a person sees in a dressing room. It’s no secret that e-commerce is gradually replacing conventional stores and such ideas provide new opportunities for competition.
In addition to the benefits that information is delivered to customers at the right place and at the right time, there are other advantages of “electronic displays”.
For example, inventory management. If suddenly there is an excess of one product in the warehouse, then you can easily, and most importantly, quickly launch an advertising promo video right at the outlet. When there is no excess, you can launch a video with a different type of product or other information.
Another plus is space savings. Nowadays, renting a room is expensive, whether it is in the city center or its outskirts. In many Audi showrooms in Europe, only a few cars are on display, and the rest of the range can be viewed via video. The client can find out everything he needs about the model he likes and order it in the future. In such showrooms there are video panels for displaying cars and panels where you can select the necessary options. According to Marcus Deserno, managing director of Seen Media, Audi has the largest digital signage network, covering showrooms and offices in 94 countries. Markus also added that the most important reason why digital signage business fails is because the client’s strategy is wrong in the first place, who just wants to install beautiful and bright displays and poor choice of screen placement – even an ideal system in an “impassable place” will be useless. And of course, do not forget about what information will be broadcast on the display. Investing in relatively “expensive equipment” while saving on content often also ends in failure.
According to experts, the following factors prevent the spread of the Digital Signage industry in Pakistan:
- lack of a single system data format;
- lack of interest in the regions, since most advertisers want to work in large cities;
- Incomprehensible pricing principle for customers.
In particular, experts highlight the following difficulties: lack of understanding of the effectiveness of this method of advertising and the unwillingness of the management of the relevant departments, commercial and government agencies to innovate. Lack of methodology – customers do not have an understanding of how to implement an advertising program: create a new one each time or adapt an already created template. A small amount of truly high-quality content – lively, bright, informative and relevant. Here the main problem is to correctly combine advertising and informative content for a good perception by the audience. Well, and administrative difficulties in coordinating marketing projects with the customer’s management.
The ways of development of Digital Signage systems in the world differ from those in Pakistan. They include:
Integrated approach. Equipment, space for placement and good content together make this project as effective as possible.
Constant growth. Creation of large video walls on advertising platforms, widespread use – indoors and outdoors, as well as integration into elements of urban architecture.
Innovative application. Interactive panels with Internet access and the effect of presence, thanks to modern 3D technologies, or advertising monitors as flooring.
The emergence of video surveillance systems in the complexes of advertising and information screens. Allows you to get “feedback” and the reaction of the audience. Nowadays, there are already technologies for analyzing the portrait of an advertising audience, and it significantly improves the targeting and effectiveness of this advertising method.
According to European indicators, the payback time of Digital Signage systems is about one year, and ROI for the first years of use reaches 250% or more. The Pakistan advertising market is developing slowly and at the same time, a rapid growth of interest in the latest Digital Signage methods is already expected. But this is possible only after understanding that information and advertising screens are not a luxury, but an effective means of promotion with a quick return on investment.
