Everything You Always Wanted To Know About Digital Signage But Were Afraid To Ask
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Everything You Always Wanted To Know About Digital Signage But Were Afraid To Ask

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Introduction to Digital Signage presentation given at the ISA 2011 Sign Expo April 29, 2011 in Las Vegas. The presentation cuts through the hype and the countless digital signage companies to choose ...

Introduction to Digital Signage presentation given at the ISA 2011 Sign Expo April 29, 2011 in Las Vegas. The presentation cuts through the hype and the countless digital signage companies to choose from. Understand how digital signage works and how to sell the right digital signage to your customers.

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Everything You Always Wanted To Know About Digital Signage But Were Afraid To Ask Everything You Always Wanted To Know About Digital Signage But Were Afraid To Ask Document Transcript

  • Slide 1Hello,  and  thanks  for  coming  to  Everything  You  Always  Wanted  To  Know  About  Digital  Signage  But  Were  Afraid  To  Ask,  my  name  is  Bruce  Goldstein  and  I  am  a  digital  signage  consultant.  My  company  Designage  offers  digital  signage  consulting  services  to  resellers  and  end  users  interested  in  using  digital  signage.  For  resellers  like  sign  makers  or  point  of  purchase  display  manufacturers,  Designage  teaches  them  how  to  sell  and  market  digital  signage  and  services  best  suited  to  their  company,  that  helps  grow  their  business.  For  end-­‐users  we’ll  establish  objectives  and  requirements,  and  recommend  solutions  to  install  to  meet  those  needs  as  well  as  help  them  with  the  install  and  operation  of  the  solution.  Now  the  reason  for  the  title  of  my  presentation,  aside  from  growing  up  a  Woody  Allen  fan,  has  to  do  with  the  anxiety  people  feel  about  technology,  in  this  case  digital  signage  technology.  By  the  end  of  the  day  I  hope  to  give  you  a  basic  understanding  about  what  digital  signage  is  and  how  it  can  help  grow  your  business,  as  well  as  to  answer  any  questions  you  may  have  and  to  eliminate  any  anxiety  you  may  feel  about  digital  signage.  
  • Slide 2I’m  going  to  cover  a  variety  of  topics  about  digital  signage  that  I  think  you  will  find  interesting  including:    What  Digital  Signage  is  and  what  it  can  do  -­‐  Market  drivers  and  trends  causing  digital  signage  to  grow  and  become  more  popular.  -­‐  Digital  Signage  compared  to  static  signage,  or  Static  On  Steroids,  since  they  are  cousins  not  competitors.  -­‐  I’ll  show  you  a  couple  of  popular  uses  for  digital  signage,  and  also  -­‐  Show  you  what  you  need  to  know  to  make  a  digital  sign  work  -­‐  I’ll  also  talk  about  content,  or  the  messages  displayed  on  the  screen,  an  area  were  there  is  a  lot  of  opportunity  for  sign  and  print  makers  to  prosper  -­‐  And  in  closing  I’ll  run  through  some  numbers  to  show  costs  and  sales  results  possible  with  digital  signage.    
  • Slide 3Let  me  start  by  defining  digital  signage.  Simply  speaking,  Digital  Signage  is  an  electronic  sign.  Kind  of  like  an  upgrade  to  existing  sign,  but  because  it  is  electronic  it  has  some  of  the  following  capabilities.  It  can…  
  • Slide 4Change  quickly  and  easily  
  • Slide 5Deliver  content  or  messages  based  on  the  time  of  day,  for  example  breakfast  lunch  and  dinner  
  • Slide 6Deliver  content  or  messages  based  on  the  day  of  the  week,  for  example  a  2  for  Tuesday  promotion  
  • Slide 7Deliver  content  or  messages  based  on  a  promotional  schedule,  for  example  a  holiday  sale  
  • Slide 8In  addition  you  can  change  the  sign  based  on  shopper  demographics  that  frequent  a  store  in  the  morning  as  opposed  to  those  that  frequent  it  in  the  evening.      
  • Slide 9Or  change  the  sign  based  on  its  location  
  • Slide 10Or  the  season  were  in,  promoting  more  hot  beverages  than  cold  for  example      
  • Slide 11And  because  a  digital  sign  has  the  ability  to  make  these  kinds  of  changes.  It  can  help…  
  • Slide 12Increase  sales,  average  spends,  gross  revenue,  etc.  of  a  particular  business  using  digital  signage.  
  • Slide 13Optimize  the  variety  of  kinds  of  products  being  sold.  Perhaps  20  brands  of  mustard  isn’t  necessary?  
  • Slide 14And  without  giving  away  free  candy,  but  by  educating  customers  with  informative  content  or  messaging,  it  can  increase  the  frequency  of  their  visits.  
  • Slide 15Overall,  it  can  provide  customers  with  a  more  enjoyable  and  exciting  shopping  experience  
  • Slide 16And  if  a  hometown  team  just  won  a  championship,  you  can  honor  them  the  next  day  without  any  priority  shipping  charges  incurred,  
  • Slide 17In  addition  to  these  capabilities  and  improvements,  the  digital  signage  market  will  continue  to  grow  as  a  result  of  the  following  market  drivers  or  trends…  
  • Slide 18Technology  innovation  continues  to  charge  ahead.  Everything  in  technology  continues  to  get  Bigger  Better  Faster  and  Cheaper  as  this  chart  illustrates.    A  large  up  front  cost  of  a  Digital  Signage  system  is  usually  the  display.  Less  than  10  years  ago  a  30”  display  debuted  at  $8,000  dollars.  Today  you  get  one  with  better  picture  quality,  almost  twice  the  screen  size  for  less  than  1/3  of  the  cost.    
  • Slide 19This  charts  illustrates  how  much  digital  signage  costs  per  location  have  dropped.  They  are  now  more  than  half  what  they  were  in  2004  (based  on  the  installation  of  a  100  screen  location  network).  
  • Slide 20As  cost  becomes  less  a  barrier  to  entry,  more  digital  signs  get  installed,  and  more  results  get  documented.  
  • Slide 21And  leading  market  research  firms  analyze  these  results  and  trends,  and  release  healthy  industry  forecasts  as  a  result.  A  few  notable  ones  are  shown  here…    
  • Slide 22Another  notable  trend  contributing  to  the  growth  of  digital  signage  is  the  availability  of  Good  Enough  Technology.  No  longer  does  the  newest  hottest  product  mean  it’s  the  most  expensive  and  advanced  product  available.  How  many  $99  LCD  photo-­‐frames  used  as  digital  signs  have  you  seen  in  use  that  were  good  enough?    
  • Slide 23Immediate  access  to  information  is  wired,  Seeing  it  this  evening  on  TV  is  tired.  More  and  more  of  us  get  information  from  the  new  media  triad  (internet  websites,  from  our  phones  &  other  digital  out  of  home  products  like  digital  signage),  especially  the  Gen  X  and  Gen  Y  consumer,  they  want  information  available  instantly.  
  • Slide 24And  lastly,  more  then  a  trend,  but  a  regulation  that  will  need  to  be  followed  is  menu  labeling.  Because  digital  signs  or  digital  menu  boards  can  be  updated  instantly,  Digital  Signage  will  help  companies  comply  with  this  regulation  and  any  others  that  follow.  To  start,  Menu  labeling  will  mandate  that  restaurants  with  20  or  more  locations  display  menu  item  calorie  information.      Even  without  regulations,  using  a  digital  sign  to  display  nutritional  information  is  something  that  65%  of  Americans  would  like  to  see*.  *According  to  a  2009  Guiding  Stars  Survey    
  • Slide 25This  next  set  of  slides  highlights  the  advantages  and  capabilities  digital  signage  has  compared  to  regular  signs...Keep  in  mind,  static  signs  and  digital  signs  are  complimentary  business  partners,  they  are  cousins  not  competitors.  Having  the  ability  to  offer  digital  signage  strengthens  a  companies  product  and  services  offering,  it  does  not  cannibalize  it.  And  if  you  can  also  offer  value  added  services  like  content  design  for  digital  signage,  it  will  give  you  a  clear  advantage  over  most  other  companies  already  selling  digital  signage  products  into  the  marketplace  today  (I’ll  talk  a  bit  more  about  this  later).    
  • Slide 26As  mentioned  previously,  the  content  or  message  on  the  digital  sign  can  change,  based  on  a  pre-­‐programmed  schedule  for  timely  information.  This  increases  viewership  and  increases  sales  revenue.  
  • Slide 27Also  the  use  of  motion  gives  a  digital  sign  a  great  advantage  compared  to  static  signs.  Used  properly  it  gives  a  sign  more  attention  grabbing  ability  than  signs  that  don’t  have  motion.  
  • Slide 28The  ability  to  distribute  digital  signage  content  using  a  network  reduces  logistical  costs  associated  with  shipping  and  installing  a  new  static  sign,  and  it  uses  less  energy  too.  
  • Slide 29Lastly  because  you  have  the  ability  to  transfer  content  using  a  network,  it  makes  updates  quick  efficient  and  dependable.  
  • Slide 30The  next  several  slides  will  highlight  several  popular  applications  or  ways  digital  signage  is  being  used  today.    
  • Slide 31Corporate  Communications    
  • Slide 32Foodservice,  from  restaurants  to  food  concessions  in  arenas  to  corporate  cafeterias.  Note  the  integrated  custom  enclosure  design.  Another  value  added  service  opportunity  for  sign  companies  offering  digital  signage  too.    
  • Slide 33Hospitality  examples  here  make  use  of  two  things  in  particular  to  note.  Display  sizes  vary  from  small  to  large  and  orientation,  either  landscape  or  portrait.  
  • Slide 34In  large  public  spaces  digital  signage  is  primarily  used  for  advertising  networks  or  wayfinding.  
  • Slide 35In  retail  most  digital  signage  is  used  to  increase  the  average  spend  of  their  customers  and  to  improve  effectiveness  of  limited  time  offers.  Note  again  display  sizes  in  use  vary  as  well  as  orientation.  
  • Slide 36Now  I’ll  dig  in  a  little  deeper  and  review  the  5  main  areas  of  what  makes  a  digital  signage  solution  work.    Keep  in  mind  that  this  is  an  area  where  a  digital  signage  consultant  can  get  involved  to  help  educate  you  about  all  the  different  possibilities.  If  this  is  something  you  don’t  have  the  resources  for,  or  you  would  rather  not  do  yourself  a  digital  signage  consultant  can  assist  you.    
  • Slide 37The  display  is  one  of  the  most  expensive  up  front  costs  and  there  are  many  products  to  choose  from.  As  a  result,  manufacturers  use  specifications  primarily  to  have  better  numbers  then  their  competitors.  Unfortunately,  no  standardized  testing  exists  for  things  like  contrast,  response  time  and  brightness.  So  rather  than  getting  caught  up  in  these  numbers  think  more  about  things  like  reliability,  screen  size  and  resolution.  
  • Slide 38There  also  exists  a  large  variety  of  inexpensive  consumer  grade  LCDs  too.  Their  prices  are  appealing,  but  keep  in  mind  they  are  different  then  commercial  grade  LCD.  Consumer  grade  can  work  though.  If  the  amount  of  hours  of  use  per  day  is  low,  and  the  product  is  being  used  in  a  well  ventilated  space,  and  priced  right,  they  can  be  almost  disposable.  Meaning,  if  replacing  it  for  your  client  12-­‐24  months  later  is  not  too  costly,  then  go  with  consumer.  However  commercial  grade  LCDs  are  used  for  most  digital  signage  solutions  and  here  is  why…  
  • Slide 39Commercial  grade  LCDs  come  with  a  5  year  on-­‐site  warranty  and  are  built  to  withstand  extended  use  (24/7/365)  in  harsh  environments  and  in  landscape  or  portrait  mode.  They  also  recognize  more  TV  and  PC  output  resolutions,  have  outputs  and  can  disable  or  lock-­‐out  the  use  of  any  external  buttons.  
  • Slide 40If  the  display  puts  the  “sign”  in  digital  signage,  then  the  media  player  helps  put  the  “digital”  in  it.  The  heart  and  brain  of  digital  signage  technology  resides  in  the  media  player  and  whether  it  is  a  PC  media  player  or  a  Dedicated  media  player,  it  is  responsible  for  receiving  and  outputting  the  content  onto  the  display.  
  • Slide 41Depending  on  your  digital  signage  software,  you’ll  find  media  players  available  in  compact  form  factors  for  several  hundred  dollars  as  pictured  here,  to  large  rack  mountable  boxes  costing  a  couple  thousand  dollars.  
  • Slide 42PCs  and  Dedicated  media  players  contain  the  digital  signage  software  that  plays  different  media  files.  PCs  are  usually  more  compatible  with  a  variety  of  digital  signage  software  and  offer  a  variety  of  configurations  while  Dedicated  media  players  are  optimized  for  a  specific  type  of  software.  One  is  not  necessarily  better  than  the  other,  and  it  is  best  to  let  the  software  you  decide  to  use  determine  which  type  of  media  player  to  use.  
  • Slide 43While  there  are  hundreds  of  digital  signage  software  solutions  to  choose  from,  most  all  offer  the  core  capabilities,  to  create  a  playlist,  a  playback  schedule  and  the  ability  to  distribute  this  information  along  with  the  content  over  a  network  or  with  a  removable  storage  device  to  the  media  player.  So  how  to  compare?  Now  keep  in  mind  as  I  mentioned  earlier,  If  this  is  something  you  do  not  have  the  time  or  resources  to  do,  bringing  in  a  digital  signage  consultant  to  assist  you  here  could  be  a  good  idea.  Concentrate  more  on  researching  the  reputation  and  growth  of  the  company  that  makes  the  software  instead,  by  doing  some  of  the  following…    
  • Slide 44Kick  the  tires  and  test  the  software.  Make  sure  the  features  you  or  your  client  need  are  available.  Evaluate  things  like  ease-­‐of-­‐use  and  the  software  companies  customer  service  and  support.    
  • Slide 45Check  their  track  record  as  well…It’s  not  just  about  their  latest  big  win  or  pr  campaign,  but  also  about  how  long  they  have  been  around,  what  is  the  size  of  their  installed  based  and  what  kind  of  reputation  do  they  have?  
  • Slide 46Work  directly  with  them...are  they  easy  to  work  with,  responsive,  dependable,  well  organized?  
  • Slide 47Get  References  and  contact  them…Find  out  more  about  the  company  from  actual  end-­‐users.  Sometimes  things  are  not  always  as  they  seem.  Being  well  informed  about  the  company  and  how  they  support  the  product  you  want  to  use  will  ensure  you  are  making  a  wise  investment  or  not.  
  • Slide 48The  next  area  to  discuss  is  distribution.  Getting  content  or  messaging  along  with  its  playlist  and  play  back  schedule  from  point  A  to  point  B.    
  • Slide 49The  simplest  least  expensive  way  to  get  digital  signage  programming  from  point  A  to  point  B  is  with  a  memory  stick  or  removable  memory  card  of  some  kind.  If  the  information  needed  to  show  on  the  display  does  not  need  to  change  on  a  moments  notice,  and  the  playback  schedule  can  be  fixed  for  a  week  or  more  at  a  time,  this  could  be  a  good  way  to  go.  It’s  inexpensive  and  reliable.  If  not,  there  are  several  connected  network  distribution  configurations  you  may  want  to  consider  instead…  
  • Slide 50With  a  master  slave  configuration,  digital  signage  programming  software  resides  on  a  PC  and  connects  to  the  media  players  over  a  network  to  distribute  programming  information.  You  typically  pay  a  one  time  perpetual  license  fee  for  this  type  of  software.  You  may  pay  support  fees,  and  you  usually  manage  the  network  from  you  or  your  clients  own  PC.  
  • Slide 51A  Connected  On-­‐Premise  set-­‐up  uses  a  server  PC  between  administrator  PCs  and  the  media  players.  Administrators  connect  to  the  server  PC  through  a  web  browser  to  upload  content,  create  playlists,  schedules  and  distribute  programming  to  the  media  players  from  the  server  PC.  You  typically  pay  a  one  time  perpetual  license  fee  for  this  type  of  software  that  can  be  set-­‐up  like  this.  You  may  pay  support  fees,  and  you  usually  manage  the  network  from  you  or  your  clients  own  server  PC.    
  • Slide 52A  Connected  SaaS  (or  Software  as  a  Service)  set-­‐up  is  similar  to  an  On-­‐Premise  solution  set-­‐up,  but  the  server  PC  is  located  remotely,  managed  by  the  digital  signage  software  company  (instead  of  you  or  your  client).  You  typically  pay  a  monthly  fee  for  this  set-­‐up  which  can  be  more  costly,  but  support  and  management  services  are  usually  handled  by  the  software  company  and  it  is  included  with  the  monthly  fee.  
  • Slide 53The  fifth  area  of  a  digital  signage  solution  and  perhaps  most  important  is  the  content  or  messaging  designed  to  appear  on  the  display  screen.  Often  times  having  a  content  plan  and  creating  professionally  designed  content  is  the  difference  between  success  and  failure.  If  your  company  has  the  ability  to  do  creative  design,  this  is  an  area  you  should  consider  offering  as  a  value  added  service  to  ensure  the  success  of  the  solutions  you  sell,  and  to  increase  the  amount  of  revenue  you  can  generate  with  digital  signage.    
  • Slide 54Developing  content  that  meets  these  objectives  and  incorporates  the  values  and  techniques  that  follow  will  increase  the  effectiveness  of  the  digital  signage  content  you  create.  To  start,  digital  signage  content  needs  to  captivate  the  viewer  and  control  their  eyepath,  provoke  thought,  arouse  emotion  and  encourage  viewers  to  act  in  some  way,  like  for  example,  to  purchase  a  product  or  service.  
  • Slide 55Remember  to  incorporate  the  following  values  when  creating  digital  signage  content.  “C-­‐cubed”  or  clear,  concise,  compelling  refers  to  the  use  of  graphic  elements  in  the  content  layout.  Like  using  fonts  that  first  and  foremost  are  easy  to  read,  perhaps  have  some  motion  characteristics,  and  are  styled  appropriately  to  create  the  overall  image  you  want  to  portray.  
  • Slide 56With  the  exception  of  long  dwell  times  associated  with  digital  signage  used  in  places  like  waiting  rooms  or  at  banks,  most  viewers  only  glance  at  digital  signs  for  only  a  few  seconds  at  a  time,  so  the  shorter  and  simpler  the  content  run  time  and  message  the  better,  so  Keep  It  Simple.    
  • Slide 57And  with  short  viewing  time  and  attention  spans  for  that  matter  the  larger  fonts  and  images  you  can  use  to  visualize  the  message  the  better  and  more  effective.  Bigger  Is  Better.    
  • Slide 58Now  a  little  about  techniques  you  can  use  to  help  meet  the  objectives  of  successful  digital  signage  content.  
  • Slide 59Attract  and  engage  viewers  with  interesting  graphic  elements  that  capture  their  attention  and  make  them  think  twice…  
  • Slide 60Use  contrast  to  focus  your  viewers  eye  and  attention,  not  like  this,  but  like  this…    
  • Slide 61
  • Slide 62Bleeding  images  off  of  the  edges  of  your  sign  makes  images  feel  bigger  and  more  dynamic,  and  food  more  scrumptious…  
  • Slide 63
  • Slide 64Placing  text  in  open  areas  of  a  layout  and  or  with  little  background  noise  ensures  it  will  be  easier  to  read…    
  • Slide 65
  • Slide 66Fix  your  focus.  Draw  your  viewers  eyes  to  the  area  of  a  layout  you  want  them  to  by  playing  with  focus,  like  this…    
  • Slide 67
  • Slide 68Placing  the  focal  point  of  your  image  or  layout  along  the  intersection  of  an  equally  spaced  3x3  grid  can  help  create  more  energy  and  interest  in  the  total  layout.  So,  instead  of  going  with  something  like  this.  Try  this  instead…    
  • Slide 69
  • Slide 70Working  within  these  pixel  dimensions  will  ensure  your  content  layout  will  scale  perfectly  with  the  display.  The  higher  the  pixel  dimensions  or  resolution  you  can  work  in,  the  crisper  and  clearer  your  content  will  look.    
  • Slide 71If  this  is  the  aspect  ratio  of  the  image  you  have  to  work  with  and  you  need  to  fill  the  space,  do  it  creatively,  but  don’t  do  it  like  this…    
  • Slide 72Skewing  and  distorting  graphic  elements  and  images,  cheapen  content  quality,  and  decreases  effectiveness.    
  • Slide 73The  final  topic  today  is  related  to  numbers.  Costs,  revenue  opportunities  and  return  on  investment.  The  revenue  opportunity  here  being  digital  signage  content  creation  services.  
  • Slide 74Why  are  Content  Creation  Services  a  revenue  opportunity?  There  is  a  lack  of  companies  selling  digital  signage  that  have  visual  communication  skills.  Most  companies  selling  digital  signage  are  IT  firms.  Furthermore,  most  end-­‐user  businesses  require  simple  digital  signage  solutions  that  require  little  IT  support.  
  • Slide 75There  is  a  need  for  designers  who  have  the  ability  to  translate  objectives  and  needs  into  compelling  visual  messages,  or  content  for  digital  signage.  These  services  offer  high  value  and  are  in  demand.  Some  of  those  services  are  mentioned  here.  Consider  partnering  with  firms  selling  digital  signage  or  offering  your  own  digital  signage  solutions  along  with  these  content  creation  services.    
  • Slide 76Now  for  a  look  at  some  estimated  costs…A  simple  digital  sign  does  not  have  to  be  expensive.  For  example,  a  countertop  digital  sign,  placed  in  front  of  the  customer  at  the  point  of  sale  can  cost  $2,000.  $500  of  which  is  generated  for  1  years  worth  of  content  creation  services  (or  $42/month).  
  • Slide 77A  little  more  expensive  solution  with  a  larger  LCD  wall  mounted  in  a  retail  store  can  cost  around  $4,000,  with  a  $700  content  creation  service  fee  for  1  years  worth  of  content  creation  services  (or  $58/month).  
  • Slide 78Now  justifying  the  cost  with  a  simple  ROI.  This  one  has  been  created  based  on  achieving  a  very  reasonable  5%  or  $12,500  gross  sales  lift/year,  through  the  use  of  the  inexpensive  $2,000  countertop  digital  sign.  At  that  rate  the  sign  could  pay  for  itself  within  8  months  ($250,000  divided  by  360  days  =  $700/day)  (based  on  a  $5  average  sale,  140  orders/day,  operating  360  days/year).  (Gross  sales  lift  equals  $12,500/year,  $35/day,  $.25/order).    So  you  see  how  a  quick  return  on  your  customers  investment  in  a  digital  sign  can  be  achieved,  while  also  achieving  a  recurring  revenue  for  your  business  through  digital  signage  content  creation  services.  
  • Slide 79So  to  summarize  in  brief  in  closing.  keep  in  mind  some  of  these  key  take-­‐aways:  -­‐  Digital  signage  is  complimentary  to  existing  sign  products  and  businesses,  it  is  not  a  competitor  -­‐  Like  existing  signs  you  create  today,  digital  signage  content  must  be  clear,  concise  and  compelling  too.  And  should  always  change  and  be  kept  up  to  date.  -­‐  If  you’re  thinking  about  offering  digital  signage,  consider  offering  digital  signage  content  creation  services  as  well.  
  • Slide 80Thank  you  for  your  time  and  please  feel  free  to  contact  me  to  discuss  how  I  can  assist  you  with  any  of  your  digital  signage  needs.  Designage  offers  creative  as  well  as  technical  expertise  to  help  develop  your  digital  signage  business.  My  email  address  is  bruceg@designageco.com  or  you  can  call  me  at  201.400.8373.  
  • Slide 81Please  feel  free  to  give  me  one  of  your  business  cards  if  you  would  like  to  receive  a  copy  of  this  presentation  along  with  all  of  my  notes.  Thank  you.  
  • Slide 82