digital out of home: the state of the industry today and tomorrow
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This was delivered on Sept. 30 and Oct. 1 in London at the Digital Signage Show Europe by Bill Yackey, editor of DigitalSignageToday.com.TRANSCRIPT
Digital Out-of-Home: The state of the industry
today and tomorrow
Bill Yackey, DSCE
Editor, Digital Signage Today
Foodservice
Technology & Retail
What is DOOH?Digital signage
Captive audience networks
Narrowcasting
Digital In-store merchandising
Electronic display networks
Retail TV
Digital Media Networks
Place-based digital media
Electronic billboards
Digital signage: A piece of the DOOH puzzle
DOOH
Mobile phone adverts
DIGITAL SIGNAGE
Elevator networks
Stadium/Arena signage
Cinema screen advertsProjection adverts
Digital Billboards
Taxi TVETC.
Others separate DOOH and digital signage by
whether or not the network is ad-supported.
DS/DOOH on the communications continuum
Audience >> < Engagement
Cellular Internet Digital Out-of-home Billboard Newspaper Radio TV
Digital signage
In-Store TV
The “OuterNet”
Location-based Media
Narrowcasting
Slide created by Lyle Bunn
Where is DOOH?
Point of Sale
Point of Wait
Point of Transit
Point of Work
Target Verticals Retail Public Spaces Entertainment
Rising Stars: Education, Healthcare
Other verticals: Financial/Banking, Gaming, Government,
Hospitality, Restaurant, Transportation, Corporate Communications
US Advertising Expenditure by Medium (US$ million)
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
2007 2008 2009 2010 2011
Newspapers
Magazines
Television
Radio
Cinema
Outdoor
Internet
Out-of-home
Source: ZenithOptimedia, April 2009 and for Out-of-home 2007 PQ Media
US OOH Ad Spend ($M)
$-
$500
$1,000
$1,500
$2,000
$2,500
2007 2008 2009 2010 2011
OOH Ad Spend
Source: 2007 PQ Media
PQ Media Global DOOH spending is forecast to expand 14.5 percent from 2007 to 2012 to more than $10 billion.
EMEA is the second largest DOOH market outside of the U.S., reaching $1.55 billion in 2007, up 21.2%.
Western Europe accounts for 90% of the EMEA market.
Shipments of commercial large-format displays (26-inches+) is set to grow 44 percent in 2009.
August 2009 - Approximately 155 million (67 percent of) U.S. residents aged 18 or older have seen a digital out-of-home (DOOH) video display in the past month, at one or
more of 17 types of public venues, according to a new study by Arbitron Inc.
Challenges to the DOOH industry
Initial CapEx Lack of critical mass – TV’s tens of millions vs. DOOHs thousands Proven metrics for agencies Lack of centralized ad sourcing for DOOH ads
DOOH media fits into “plateaus” of functionality & investment
• Multi-region display
•Dynamic playlist
•Day-parting
•Regionalizing
• ”Local” input
• Triggered display
• Multi-use (staff, customer & management)
• Links to other systems
• Channel and display group scalability
• Low op cost at scale
Single region, single “group” fixed- loop playout
Investment
Functionality
Slide created by Lyle Bunn
Industry predictions for the next two years
Industry consolidation Networks: Danoo-Ideacast,
Targetcast-Ripple
Software companies: presently 300+
More local and user input Resembles move to Web 2.0
Targeted messaging for more impact
Local input windows
Social media integration
More local and user input
“Pictures are our new language”
Content is moving away from words on a screen to images and dynamic video.
Increased mobile display
Wireless enabling new applications
WRAL supplying digital signage to CAT buses in
Raleigh, N.C.
Budget/Small form-factor displays
Wireless photo frames Gaining in retail as POP/POD signage More screens – more impact
