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Network Digital Signage Will Save the Day

December 16, 2008

MultiMedia Intelligence, reported in a recent survey, that network digital signage will save the Big Three as well as the Super Bowl. The Big Three of course are the automobile companies who, as of late, have been gracing headlines. Although GM, Ford and Chrysler are hurting, they aren’t doubled over in pain like those in the advertising industry.

According to MultiMedia Intelligence, GM, in 2008, had a budget of more than $2B for marketing and advertisement. But when Q3 2008 was over, most of that budget was pulled meaning plans for those awesome 30 second, often hilarious, multimillion dollar ads shown during the Super Bowl in February will be cut back. Looks like a lot of us females are now without entertainment.
Regardless, the money clench is impacting all advertisers that spend big money.  Broadcast is fighting, on all fronts, from mobile to the internet.  In this depressed global economy, the ad market in 2009 will more than likely be weakened and the recovery may be slow moving into 2010.  A full recovery may not be seen until 2H10, or 2011. 
In the meantime, global ad spends will have to find new homes for the non-receptive eyes on traditional broadcast TV, Cable and Satellite.  If implemented correctly, Network Digital Signage could be the perfect go-to advertiser’s choice. 
"Network Digital Signage and Digital signage software companies can no longer differentiate themselves on basic display or management functions; this is now considered baseline options on a punch list.  A new age of powerful analytic tools are being embedded in the displays as well as the Signage Network themselves,” asserts Rick Sizemore, President & Founder for MultiMedia Intelligence. 
MultiMedia Intelligence also found that:
  • Software as a Service (SaaS) is growing in popularity. Since most major software deployments are web-based, the biggest single difference between SaaS and End-to-End software providers is that the SaaS have the server in remote-locations. End-to-End service providers work with the premise that the central media server is on-location.
  • The leading companies providing network digital signage software include Cisco, Scala, Key West Technology, and Westinghouse.
  • Forty percent of new network digital display platforms installations will leverage SMS for interactivity by 2012
  • In 2008, 90% of all networking connections from the servers to the set top boxes or digital media adapters in digital signage networks were Ethernet.
  • Europe is becoming more significant in the digital signage market. Germany is seeing a significant rise in deployments with 5,000 new digital signage display screens expected to be installed in 2008.
  • The market for digital signage continues its growth as the market consumed 1.1 million displays in 2008. This is an increase of display shipments 34% over 2007. By 2012, the market will consume nearly 2.3 million displays.
  • China overtook the USA as the top digital signage consumer, driven by preparations for the 2008 Olympics.
  • Retail, transportation and restaurants and bars are the top 3 verticals for digital signage. Education and corporate communications verticals are making impressive gains.
  • Digital signage networks are increasingly driven by digital media adapters rather than PCs. Digital media adapters will exceed PCs in new deployments in 2009.
The research report, "Network Digital Signage: Infrastructure, Displays, Technology," examines and forecasts market verticals in the network digital signage market.
Forecasts are provided on an annual or per monthly average (e.g. PB/month) from 2007 through 2012. Forecasts include:
·         Digital Billboards – Revenue and Units Sold for Manufacturers and First-Year Costs and Maintenance
·         Digital Displays by Type and Digital Media Players by Type and Storage Solution
·         Set-top boxes with TV Tuners by Video Broadcasting Protocol
·         Costs Associated with Digital Signage Networks in cabling and Installations
·         Percentage of Wireless Interfaces that ask a Customer to Opt-in (RFID, Bluetooth, Wi-Fi, and Cellular)
·         Regional and Individual Country Spending for Digital Signage
Mr. Sizemore added, “IIP (Information is Power) is the mantra and the power that allow DSN providers to bring value to advertisers by enabling the DSN to do everything from dynamically changing messaging for individuals to measuring participation with an advertisement."

Jessica Kostek is a channel editor for unified communications, covering VoIP, CRM, call center and wireless technologies. To read more of Jessica’s articles, please visit her columnist page.

Edited by Jessica Kostek

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