[opendtv] News: Lessons learned in New York's subway digital signage network
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Wed, 22 Dec 2004 08:47:36 -0500
Via Broadcast Engineering's Digital Signage Update
http://broadcastengineering.com/newsletters/dsu/20041222/#
Lessons learned in New York's subway digital signage network
Dec 22, 2004 8:00 AM, Digital Signage Update , By Lyle Bunn, Guest Contributor
Eighty 25in x 50in subway entrance digital displays in New York City
- installed by UDN and managed through wireless technology - are
providing outstanding "return on space" and a highly cost-effective
venue for advertisers, according to an evaluation of the network's
first year of operation.
New York's subway digital signage network - with some 80 displays at
subway entrances - offers some valuable lessons to digital signage
users and suppliers as it celebrates its first birthday. Significant
advances have been made in digital signage during 2004 - and 2005 is
shaping up to be another busy year for dynamic digital signage.
Digital signage is being called "the last mile of a marketing
program," offering more cost-effectiveness, flexibility and control
at product and service selection locations. Many retailers such as
Apple, McDonald's, Bank of America, Circuit City, Safeway, Sears,
Virgin Music, US Postal Service and Nike, have run successful pilots
during 2004.
At the same time, some of the firms shifting ad spending to digital
signage include astute media buyers and brand-builders such as Bayer,
Black & Decker, Colgate-Palmolive, Disney, DIRECTV, Frito-Lay,
General Mills, Heinz, Kodak, L'Oreal, Minute Maid, Nestle, Sara Lee,
Starter, The New York Times, LG Mobile Phones, ABC, FOX, Univision
and Lee Jeans.
Four key lessons learned in New York:
1. "Build it and they will come." The pressure to get more results
from advertising continues to grow as digital signage takes an
increasing cut of an overall $149 billion annual investment in
advertising. At one end of the scale, cost per thousand (CPM) rates
of $2 to $6 make digital signage an inexpensive media buy. There is a
question of how long this bargain will last as performance is
increasingly proven and more advertisers take advantage of this
powerful new communications medium. Revenue increases of 30 percent
and more are being realized on products profiled, with striking
results such as a 109 percent sales increase for a new soft drink and
319 percent for a new calling card. Digital signage in bank teller
lines results in customer inquiries about new services.
2. "Wireless networking is effective." This is important
for signage location flexibility and deployments in harsh, highly
obstructed environments. According to UDN, the company that installed
the New York network, wireless networking has performed well and the
system has had no image drops. Wi-fi 802.11 using multi-polarity
antennas from WiFi-Plus (www.wifi-plus.com) has provided reliable,
secure and cost-effective connectivity for the 80 New York
street-level LED panels.
Interactive content provider BTV said cost-effective, reliable,
fully secure and interactive image transport done wirelessly by
satellite has long been used for interactive distance learning (IDL)
and business television applications. The company said that digital
signage applications benefit from the cost-effectiveness, location
flexibility, security and reliability that satellite connections
provide for digital (IP) communications.
3. "Ensure content integrity and security." System
security may be inadequate at the network design stage, or be exposed
as digital signage systems expand and use multiple media transport
providers (Internet service providers, or ISPs). According to UDN,
the system must be nearly "bullet-proof" to hackers. Signage software
providers such as Automated Digital Signage Networks (www.adsn.ca)
have taken steps to ensure security at the content ingest, playlist
management, display monitoring and other vulnerable points.
4. "Digital signage offers high return on real estate."
Digital displays support commerce, public safety and information
needs because they are so visual, vivid and eye-catching. Being able
to provide information at a point of decision or when information is
needed underpins the value of this communications medium for
advertisers and public service providers.
Revenue measures from stock turns, margin per square foot or revenues
from print (static) signage locations place a value on retail
location space. Revenue from dynamic digital display at, for example
$10,000 per month per display to the network owner, offers a good
"return on space" comparison. The location benefits of use, such as
product lift, branding, better customer relationships, liability
containment, etc., are adding to the value assessment. The 25x50in
LED signs positioned at the street level entrance to New York subways
are providing a "return on space" and value along the supply chain
from advertiser to signage provider.
Lyle Bunn is senior partner of Apogee Partners, which monitors and
reports on important technology trends and developments. White papers
on digital signage are available (no cost or registration required)
at http://members.rogers.com/apogeepartners/.
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