GCM765 Digital Signage: Comprehensive Study Notes (Weeks 1 & 2)

GCM765 Digital Signage: Weeks 1 & 2 Notes (Sept 10/25)

Course Logistics & Upcoming Due Dates

• Course Code: GCM765 Digital Signage

• Week: 2

• Date: September 10/25 (Slide 2 also shows September 10, 2016 for RECCES)

• Welcome Message: "WELCOME TO GCM765 DIGITAL SIGNAGE"

• Upcoming Due Dates:

  • In Class Quiz: Wednesday, September $24$

  • DS Survey: Sunday, September $28$

  • Presentations: Wednesday, October $1$ and Wednesday, October $8$

  • Activities: Discussion Board Review, Installation Discussions, Lecture/Schaeffler Intro and Chapter 1

• Next Week's Preparation:

  • Read Schaeffler Chapter $2$ and be prepared to discuss it.

  • Bring examples of Digital Signage (DS) to discuss in class.

  • Continue working on the DS survey assignment.

Digital Signage Discoveries: Examples from Real World

• Promotional Boards:

  • "Matilda Now" and "An American Paris" musical advertisements.

  • McDonald's "OPEN $24$ HOURS" and GE MONEY ATM/EXCHANGE signs.

  • Airline advertisements for "UNITED" and "STAR ALLIANCE MEMBER."

  • Slogans like "GENIUS BRILLIANT. PHENOMENA."

• Academic/Institutional Signage:

  • University "Programs Admissions" and "Future Students" (suggesting internal or public-facing info).

• Transportation/Public Service:

  • "Fast pass tickets are now available on the Metro App." (Informational).

  • "Be a part of something great."

• Healthcare/Emergency:

  • Memorial Miramar Hospital: Displays date $(TUESDAY, APRIL 14)$, time $(10:48AM)$, and department ($SURGERY$ DEPARTMENT).

  • Highlights: "AT THE FOREFRONT OF NANOTECHNOLOGY IMPLEMENTATION IN MEDICAL PROCEDURES NATIONWIDE."

  • Emergency Alert: "declared state of emergency for all counties in the path of Hurricane Thomas."

• Retail/Food Service:

  • Restaurant menu: "BUILD YOUR OWN" chicken strips, gizzards, fried chicken pieces, boneless wings, gyro, shrimp, snow crab, calamari, mussels, oysters, crawfish, fish, scallops.

  • Pricing examples: Any $2$ plus $1$ side for $11.99$, broasted chicken pieces ($Leg ext{ } ext{or ext{ }}Wing ext{ } ext{ extdollar}4.59$), $8$ pc Mixed ($8.99$ meal $10.99$).</p></li><li><p>Everyday Specials/Value Meals:$20$Wings ($17.99$),$20$Boneless ($10.99$),$20$Shrimp ($9.99$),$2$Piece Fish ($8.99$), Ice Cream Milkshakes ($1.00$).</p></li><li><p>Side Choices: French Fries, Tossed Salad, Potato, Corn, Sausage, Egg, Rice/Beans, Coleslaw.</p></li></ul></li><li><p><strong>Travel/Airport Information:</strong></p><ul><li><p>Departure board showing flight times and destinations (e.g.,$ST. PETERSBURG$$17:45$,$SHANGHAI ext{ }PUDONG$$17:45$,$GDANSK ext{ }DANZIG$$17:55$,$SEOUL ext{ }INCHEON$$18:00$).</p></li><li><p>Questionposed: "Is the 'split-flap' an example of Digital Signage?" (Implying differentiation is important).</p></li></ul></li><li><p><strong>General Information/News:</strong></p><ul><li><p>Displays showing weather ($24^{ ext{o}}$$C$, feels like$28^{ ext{o}}$$C$), news headlines (Taliban shooting, Warwick in town), sports scores (MLB, MLS, CFL), financial data (EURO USD$1.1810$).</p></li></ul></li><li><p><strong>Corporate/Brand Specific:</strong></p><ul><li><p>Coca-Cola "The Unbottled Network" showing company news, philanthropy ($106$Million to$230+$Community Organizations in$2016), stock quote (NYSE/KO $41.66).

• Fitness/Brand Integration:

  • Peloton branding.

• British Airways Case Study: YouTube examples provided for deeper understanding.

• Refik Anadol:

  • LA-based media artist.

  • "visualizes the unseen world of data."

  • Known for media architecture, galleries, and immersive events.

  • Website: https://refikanadol.com/works/

Core Components of Digital Signage Systems

The digital signage system is typically visualized as a chain:

1. Creative/Strategy: Determines the message and content.

   • Actors Involved: Ad or Marketing Agency, Digital Signage Company, Advertiser, Corporate Communicator, Artist, Event Planner, Via Programmatic Facilitator (discussed later).

2. Content Management System (CMS): Manages, schedules, and distributes content.

   • Actors Involved: Digital Signage Company, Ad or Marketing Agency, Advertiser, Corporate Communicator, Artist, Via Programmatic Facilitator (discussed later).

3. Media Player(s)/Browser: Renders and plays the content.

   • Often involves hardware (e.g., indicated by "intel inside" in diagrams).

4. Output Display(s): The screens that show the content.

   • Key Digital Signage Companies involved with displays/networks: Pattison, Astral, Cineplex Digital, Captivate, Allvision, JCDecaux, Clear Channel Outdoor.

Digital Signage Companies & Their Role

• Primary Functions:

  • Control the real estate for signage.

  • Look for high traffic areas to maximize viewership.

  • Identify multiple sign opportunities, often forming a "network."

  • Facilitate the entire process for advertisers.

  • Provide proof of execution to clients.

Strategic Use of Digital Signage

Why Communicators Choose Digital Signage

Digital signage is a powerful tool due to:

• Captive Audience: Placed in locations where people must wait with limited alternatives (e.g., Page $18$: "The most powerful 'captive audience' spots are where people must wait with limited alternatives").

• Dynamic Content: Content can be updated and changed easily.

• Contextual: Content can be tailored to the specific environment or audience.

• Networked: Multiple screens can be managed centrally, allowing for synchronized or varied content distribution.

• Wide Variety of Creative: Supports diverse forms of media.

• Relatively Low Cost to Buy: Compared to other media, initial setup can be efficient.

• Part of a Strategic Communication Solution: Integrates into broader marketing goals.

• Efficient, Fast Turnaround: Quick deployment and updates of content.

Schaeffler Introduction: "Pure and simple, digital signage is an answer"

• Core Idea: Digital signage is a solution to communication challenges.

• Marketer's Challenge: "remain relevant" in a fragmented, attention-driven media marketplace (as noted by Boidman).

• Purpose: To convey a compelling and engaging message in Out-of-Home (OOH) environments using digital technologies.

• Rationale for Digital over Print: Digital signage offers flexibility, dynamism, and real-time updates that print cannot.

Schaeffler Chapter 1: Where Digital Signage is Found & Its Purposes

• Locations: Malls, retail stores, streets/highways, stadiums, airports, banks, gyms, casinos, and more.

• Four Primary Purposes:

  1. Commercial: Primarily for advertising, promoting products or services (e.g., retail ads).

  2. Informational: Providing relevant data such as arrivals/departures, alerts, news, sports scores, weather updates, or wayfinding information.

  3. Experiential: Designed to regulate mood and ambience, creating an immersive or engaging environment.

  4. Behavioral: Influencing consumer behavior, such as perception of a reduced wait time or direct marketing calls to action.

  • Note: The discussion highlights the difference between advertising and marketing.

• Global Reach & Components:

  • DS networks often have a global reach.

  • Key Components: Software (for content management), Hardware (media players, screens), Content (the actual media displayed).

  • Distribution Methods: Internet, satellite, Wi-Fi, and even "sneaker-net" (physical transfer of content, e.g., USB drives).

• Updated Trends:

  • Artificial Intelligence (AI)

  • Programmatic ad placement (automated buying/selling of ad space)

  • Personalization of content (tailoring messages to individual viewers)

  • Interactivity (allowing users to engage with displays)

  • Enhancement of storage and cloud-based solutions.

Defining Digital Signage

• Primary Definition: "remotely managed digital display, typically tied in with sales, marketing, and advertising."

• Broader Applications: While often linked to commercial purposes, DS can also be used for information, data visualization, entertainment, mood setting, and wayfinding.

• Comprehensive Definition: "Behind the network of remotely managed digital displays is a strategic content distribution strategy to satisfy a communications or marketing goal."

• Many Names: Digital Signage is known by numerous other terms, including but not limited to:

  • "Advertising Networks," "Captive Audience Networks (CANs)," "Captive Audience TV," "Digital Advertising,"

  • "Digital Display," "Digital Media Advertising," "Digital Media Networks," "Digital Messaging,"

  • "Digital Point-of-Purchase (POP)," "Digital Signage Broadcasting," "Digital Signage Networks," "Digital Signs,"

  • "Dynamic Communications Network," "Dynamic Digital Signage," "Dynamic Display Engagement Media,"

  • "Dynamic Out-of-Home," "Dynamic Signage," "Electronic Signage," "In-Store TV," "In-Store TV Networks,"

  • "Kiosk System," "Narrowcasting Networks," "Out-of-Home Advertising," "Out-of-Home Media Networks,"

  • "Out-of-Home (OOH) Video," "Place-Based Media," "Retail Digital Media," "Retail Media,"

  • "Retail Media Networks," and "Screen Media."

Case Studies & Industry Insights

Mayo Clinic Case Study

• What is Mayo Clinic? A renowned medical institution.

• Why Digital Signage? To enhance patient experience, provide information, and manage the environment within its facilities.

  • Scope: Implies a large network across multiple locations.

  • Specifics: Often implemented without audio to maintain a calm medical environment; forms one of many media channels used by the clinic.

Stakeholders in the Digital Signage Industry

• Diverse Group: Advertisers, network operators, technology providers (screens, CMS, hardware), distribution providers, OOH companies, system contractors and installers, integrators, and location owners (e.g., restaurants, banks, retailers).

Benefits for Marketers

• Increases the motivation to buy.

• Enhances brand recall.

Future of Digital Signage

• Emerging Technologies: RFID (radio-frequency identification), increased interactivity, and downloading of content to mobile phones via signage.

• Accuweather Case Study: Highlights the popularity and utility of displaying weather data on digital signs.

Digital Signage vs. Television

• Question to Ponder: How are DS and TV related, both technically and from a content perspective?

  • Implicitly, DS is often location-specific, managed for a direct purpose (info, ad, ambience) in public spaces, while traditional TV is broadcast to homes for entertainment/mass media, though content overlap exists.

Measurement of the Digital Out-of-Home (DOOH) Industry

• Correlation: Measurement of the DS industry is closely associated with the DOOH advertising industry.

• Key Metrics: Ad spend (how much and where advertisers allocate budgets) and sales of screens for commercial purposes.

• Key Industry Ideas:

  • Outdoor advertising spend (including DOOH) is low compared to other media categories.

  • However, shoppers are highly receptive to the medium.

  • DS reaches consumers when they are ready to buy.

  • Increases the likelihood of unplanned purchases.

Global Advertising Spending Statistics

• Distribution of Ad Spend Worldwide (2022-2026, by medium): Digital consistently holds the largest share, followed by TV, Print, Out-of-home, Audio, and Cinema.

• OOH Revenue as a Percentage of Total Ad Revenue Worldwide (2014-2024):

  • In $2024$, OOH revenues accounted for an estimated $5.5$ percent of worldwide advertising spending.

  • This is slightly down from $5.6$ percent a year earlier.

  • Before the pandemic (up to $2019$), the share stood at around $6$ percent.

• Distribution of OOH Advertising Market Value Worldwide (2024-2029, by type):

  • The Digital Out-of-Home (DOOH) subsegment is estimated to account for $41$ percent of total OOH advertising revenues worldwide in $2024$.

  • This share is forecasted to rise, albeit still below $45$ percent by $2029$.

  • By $2029$, DOOH is projected to account for $44$ percent, with Traditional OOH accounting for the remaining $56$ percent.

• Distribution of DOOH Advertising Revenue Worldwide in $2024$, by Region:

  • China alone accounted for an estimated $54.6$ percent of global DOOH advertising revenues (excluding U.S. political ad spending).

  • The Rest of the World accounted for approximately $45.4$ percent.

  • Worldwide DOOH ad expenditure is forecasted to reach $20.4$ billion U.S. dollars in $2024$.

• Leading OOH Advertising Companies in the United States and Canada in $2024$, by Revenue (in million U.S. dollars):

  • Lamar (U.S.): $2,207$ million

  • Outfront Media (U.S.): $1,831$ million

  • Clear Channel Outdoor (U.S.): $1,505$ million

  • JCDecaux (France)*: $329$ million (Note: *Excluding revenue from APG|SGA, Metrobus, and Clear Media integrated through the equity method in JCDecaux’s financial statements.)

• Attributes of OOH, DOOH, and prDOOH Advertising (US Marketers, August $2024$; $200$ respondents):

  • Programmatic Digital Out-of-Home (prDOOH):

    • Establishing trust/credibility with target consumer: $64$

    • Providing dynamic creative opportunities: $62$

    • Triggering a positive emotional response: $61$

  • Digital Out-of-Home (DOOH):

    • Establishing trust/credibility with target consumer: $55$

    • Providing dynamic creative opportunities: $50$

    • Triggering a positive emotional response: $52$

  • Traditional Out-of-Home (OOH):

    • Establishing trust/credibility with target consumer: $50$

    • Providing dynamic creative opportunities: $43$

    • Triggering a positive emotional response: $47$

• Attitudes Toward Directional DOOH Advertising (US Adults, April $2024$; $1,023$ respondents aged $18-64$):

  • $30$% noticed DOOH ads providing directions to a business.

  • $51$% visited the business after noticing directional DOOH ads.

  • $93$% made a purchase after noticing directional DOOH ads and visiting the business.

  • $73$% view DOOH favorably, significantly higher than competing ad media (video, social media, print, audio, online).

  • Over $40$% of mobile device users searched for an advertiser after seeing a DOOH ad.

  • Respondents were most likely to notice ads featuring cost savings at grocery stores and restaurants, or upcoming movie releases.

  • Consumers are likely to share ad content deemed entertaining (creative, clever, humorous) or that features their favorite products or brands.

Key Principles of Digital Signage

1. Directed at a Captive Audience: The audience has limited alternatives and often little choice but to view the content.

2. Environmentally Contextual: The installation and its content add "value" to the specific location where it is installed, informing and entertaining contextually.

3. Content is Dynamic: The content changes based on a predetermined strategy, allowing for real-time updates and variety.

4. Content is Controlled Centrally or Locally: The installation utilizes technology (e.g., a central server, media player, USB) to play out and manage content.