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

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Digital Out Of Home: The state of the industry today and tomorrow

  1. 1. Digital Out-of-Home: The state of the industry today and tomorrow Bill Yackey, DSCE Editor, Digital Signage Today
  2. 2. Technology & Retail Foodservice
  3. 3. 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
  4. 4. Digital signage: A piece of the DOOH puzzle DOOH Mobile phone adverts DIGITAL SIGNAGE Elevator networks Stadium/Arena signage Cinema screen adverts Projection adverts Digital Billboards Taxi TV ETC.
  5. 5. Others separate DOOH and digital signage by whether or not the network is ad-supported.
  6. 6. 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
  7. 7. Where is DOOH? <ul><li>Point of Sale </li></ul><ul><li>Point of Wait </li></ul><ul><li>Point of Transit </li></ul><ul><li>Point of Work </li></ul>
  8. 8. Target Verticals <ul><li>Retail </li></ul><ul><li>Public Spaces </li></ul><ul><li>Entertainment </li></ul><ul><li>Rising Stars: Education, Healthcare </li></ul><ul><li>Other verticals: Financial/Banking, Gaming, Government, Hospitality, Restaurant, Transportation, Corporate Communications </li></ul>
  9. 9. Source: ZenithOptimedia, April 2009 and for Out-of-home 2007 PQ Media
  10. 10. Source: 2007 PQ Media
  11. 11. PQ Media <ul><li>Global DOOH spending is forecast to expand 14.5 percent from 2007 to 2012 to more than $10 billion. </li></ul><ul><li>EMEA is the second largest DOOH market outside of the U.S., reaching $1.55 billion in 2007, up 21.2%. </li></ul><ul><li>Western Europe accounts for 90% of the EMEA market. </li></ul>
  12. 12. Shipments of commercial large-format displays (26-inches+) is set to grow 44 percent in 2009.
  13. 13. 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.
  14. 14. Challenges to the DOOH industry <ul><li>Initial CapEx </li></ul><ul><li>Lack of critical mass – TV’s tens of millions vs. DOOHs thousands </li></ul><ul><li>Proven metrics for agencies </li></ul><ul><li>Lack of centralized ad sourcing for DOOH ads </li></ul>
  15. 15. DOOH media fits into “plateaus” of functionality & investment <ul><li>Multi-region display </li></ul><ul><li>Dynamic playlist </li></ul><ul><li>Day-parting </li></ul><ul><li>Regionalizing </li></ul><ul><li>” Local” input </li></ul><ul><li>Triggered display </li></ul><ul><li>Multi-use (staff, customer & management) </li></ul><ul><li>Links to other systems </li></ul><ul><li>Channel and display group scalability </li></ul><ul><li>Low op cost at scale </li></ul>Single region, single “group” fixed- loop playout Investment Functionality Slide created by Lyle Bunn
  16. 16. Industry predictions for the next two years
  17. 17. Industry consolidation <ul><li>Networks: Danoo-Ideacast, Targetcast-Ripple </li></ul><ul><li>Software companies: presently 300+ </li></ul>
  18. 18. More local and user input <ul><li>Resembles move to Web 2.0 </li></ul><ul><li>Targeted messaging for more impact </li></ul><ul><li>Local input windows </li></ul><ul><li>Social media integration </li></ul>
  19. 19. More local and user input
  20. 20. “ Pictures are our new language” Content is moving away from words on a screen to images and dynamic video.
  21. 21. Increased mobile display <ul><li>Wireless enabling new applications </li></ul><ul><li>WRAL supplying digital signage to CAT buses in Raleigh, N.C. </li></ul>
  22. 22. Budget/Small form-factor displays <ul><li>Wireless photo frames </li></ul><ul><li>Gaining in retail as POP/POD signage </li></ul><ul><li>More screens – more impact </li></ul>
  23. 23. Questions? Bill Yackey, DSCE Editor, Digital Signage Today [email_address]