Digital Signage – Digital Advertising Networks Emerge As Valuable Addition To Media Mix

Since the beginning of this column last autumn, I have tried to highlight trends, analysis, and reports that gauge digital signage’s development and identify strengths and opportunities.

This is not an easy task. Profitable Channels has a great white paper that argues for digital signage networks. It is an effective medium for advertising, and can compensate for the shortcomings in television advertising.

This white paper highlights a larger report called “Adding Out-of Home Digital Advertising Networks to Marketing and Media Mix”, by Profitable Channels partner Stephen Diorio.

This white paper argues that digital advertising should be taken seriously by marketers. According to the whitepaper, it is in the best interests of their companies to ensure that their agency partners consider digital advertising networks as part of their marketing/media mix. It also recommends that marketers set aside a portion for this new medium in their marketing budgets.

The white paper outlines five benefits that emerging digital advertising networks have over traditional media options, including:

Measurable sales impact

Nähe to the sale

Better ways to target media

Greater relevance to the product being purchased

Integration with local selling efforts is tighter

These benefits are being recognized by many marketers. According to the white paper, 37 of 50 largest supermarket chains are currently “piloting or planning” in-store digital signage networks. In addition, more than 4,000 big-box retail stores display in-store video advertising. Budget allocation is another evidence that digital advertising networks are valuable to marketers.

The document refers to research by Veronis Stevenson, Carat Media, and others. It states that “upwards of learn more on this website $40 billion” of traditional media spending will be transferred into new media by 2011. While Internet advertising and other media will make up a significant portion of this, digital advertising networks can also benefit.

The white paper states that this shift in media spending is a reflection of a shift of consumer “attention” from traditional media and broadcast media to the Internet, new media media (cell phones, video games and podcasting) and out-of home digital advertising networks.

Important to remember is that “cinema”, as the report calls it, is included in the overall category of digital media networks. It does not distinguish between still ads and commercials projected on-screen by digital projectors or digital signage around motion picture theatres. It is equally important to realize that the former will likely be much larger than the latter. The white paper, however, identifies the strength of digital advertising networks. Digital signage is an integral part of these networks and their potential for continued growth.

The white paper also identifies five research agencies that have discovered consumers who like digital advertising networks. These networks all have positive responses from consumers and are accepted by them.

Stephen Diorio’s “Adding Out-of Home Digital Advertising Networks to Marketing and Media Mix” is the best report you can read this summer.

David Little, a digital signage enthusiast, has over 20 years experience in helping professionals to use technology to better communicate their unique marketing messages. He is the director marketing at Keywest Technology, Lenexa, Kansas, a software company that specializes in digital signage creation, management, and playback. Keywest Technology’s Six Basic Digital Signage Applications provides additional digital signage insights.