Digital signage is a form of electronic display that shows information, advertising and other messages. Digital signs (such as LCD, LED, plasma displays, or projected images) can be found in public and private environments, such as retail stores and corporate buildings.
Advertising using digital signage is a form of out-of-home advertising in which content and messages are displayed on digital signs with a common goal of delivering targeted messages to specific locations at specific times. This is often called "digital out of home" or abbreviated as DOOH.
The benefits of digital signage over traditional static signs are that the content can be exchanged more easily, animations can be shown, and the signs can adapt to the context and audience, even interactively. Digital signage also offers superior return on investment compared to traditional printed signs.
Digital signage at a store.
Market and applications
While the term "digital signage" has taken hold throughout most of the world, some companies and organisations prefer to use the terms "narrowcasting", "screen media", "place-based media", "digital merchandising", "digital media networks", "digital out-of-home" or "captive audience networks.
China currently leads the world in the number of digital signage displays deployed and number of NASDAQ IPOs, with the country's biggest digital signage firm, Focus Media Holding, alone operating more than 120,000 screens. Total revenue from the digital signage equipment market in the United States – including hardware, software, installation, and maintenance—is expected to grow by about 33% in 2009.
Digital signage is used for many different purposes and there is no definitive list. However, below are some of the most common applications of digital signage:
Public information – news, weather and local (location specific) information, such as fire exits and traveler information
Internal information – corporate messages, health & safety, news, etc.
Advertising – either related to the location the signage is in or just using the audience reach of the screens for general advertising
Brand building – in-store digital signage to promote the brand and build a brand identity
Influencing customer behavior – directing customers to different areas, increasing the dwell time on the store premises
Enhancing customer experience – applications include the reduction of perceived wait time in restaurant waiting areas, bank queues, etc., as well as recipe demonstrations in food stores
Enhancing the environment – with interactive screens (in the floor for example) or with dynamic wayfinding
Content
"Content", in the context of digital signage, is the name used to describe anything designed and displayed on screens. Content can be anything, including text, images, animations, video, audio, and interactivity. It has frequently been argued that digital signage relies on good content if it is to work effectively.
Where the technology has proven itself, it is often the content that fails, because marketers have not adapted their thinking to produce appropriate and engaging content.
Content design (much like the design for static signage) is typically done through a specialist agency or in-house. While there are a great number of different software solutions available, the most popular are made for the specific purpose of digital signage. The use of other systems to run a digital signage network often does not provide the necessary flexibility and management.
In many digital signage applications, content must be regularly updated to ensure that the correct messages are being displayed. This can either be done manually as and when needed, through a scheduling system, or by linking in with an outside feed (such as RSS or an in-house data source).
Technology
Digital signage relies on a variety of hardware to deliver the content. This is typically a display screen, player server and a content management server (sometimes both the same thing), over an infrastructure (dependent on the location of these pieces of hardware).
Displays
Digital signage displays may be LCD or plasma screens, LED boards, projection screens or other emerging display types like living surfacesor Organic LED screens (OLEDs). Other, less traditional technologies for digital signage exist, such as 'holographic displays', water screens and fog screens. However, these are typically used for smaller one-off installations rather than large networks.
Rapidly-dropping prices for large plasma and LCD screens have led to a growing increase in the number of digital signage installations. Another price-related benefit that is allowing a larger group of businesses to install digital signage is the increasing availability of newer LCD and plasma display brands in the market. Many locations have opted to forgo more expensive brand name displays for more affordable displays from less well-known companies.
A recent study shows that there is a statistically significant relationship between price and the display size. The same study also shows that there is a significant relationship between price and brand name. These two variables account for 77% of the price in displays.
Digital signage in the Warner Village Cinemas in Taipei
Content playback and management
Content is played to the displays of a digital signage network from at least one player machine. Various hardware and software options exist, providing a range of different ways to schedule and playback content. These range from simple, non-networked media players that can output basic loops of MPEG-2 video to complex, N-tier players networks that offer control over enterprise-wide or campus-wide displays at many venues from a single location. The former are ideal for small groups of displays that can be updated via CD-ROM or USB flash drive, while the latter allows digital signage network operators to either push content to many players at once or have each player pull content from a server as needed.
Developments in Web services have meant the APIs for some digital signage software now allow for customised content management interfaces through which end users can manage their content from one location, in a way which suits their requirement.
The recent introduction of free digital signage software may further expand the pool of potential users of this technology.
Network infrastructure
Unless the player server is located at the display, there is usually a network connecting the digital signage displays. The video (and possibly audio) is distributed to the displays through a series of wired network connections (such as Cat 5 cables) or wireless connectivity through the use of wireless adapters. When distributing through anything other than a video/audio cable, the signal will need to be converted with transmitter and receiver baluns.
To manage a network, a management server is usually required. This can be located anywhere, so long as it is connected to the digital signage network. New content will be managed and organised here, while the actual content itself is stored and played on the player servers.
Digital signage networks can either be closed or open to the Web, which will affect how the content on the screens is updated. For closed networks (without Internet access), updates need to be done locally through USB sticks, DVD drives or other 'on-site' updates. Open networks (with Internet access) can be updated remotely and stream data from other Internet sources (such as RSS feeds). The availability and type of Internet access (wireless, broadband, etc.) depends on the location and client.
Technologies such as IPTV allow digital signage to be used as a method of broadcasting. The content is played according to instructions provided by play lists controlled by the digital signage system content management server. Convergence between digital signage and broadcasting allows for real-time distribution of broadcast sources (TV) on a narrowcast network (digital signage).
Digital signage in the Showcase Cinema de Lux in Derby, UK
Digital signage in a pharmacy store
Other technologies
Digital signage can interact with mobile phones. Using SMS messaging and Bluetooth, some networks are increasing the interactivity of the audience. SMS messages can be used to post messages on the displays, while Bluetooth allows users to interact directly with what they see on screen.
In addition to mobile interactivity, networks are also using technology that integrates social media interactivity. This technology enables end users to send Twitter and Flickr messages as well as text messages to the displays.
Another new development is the implementation of 3D displays that operate using a technology called autostereoscopy. These displays allow the viewer to see a 3D image without using special glasses.
Digital Signage
