Perakende Sektöründe Digital Signage Kullanımı

Over the last five years, the dilution of mass media and shrinking attention spans caused by media clutter have led marketers and brand managers towards alternate media that can deliver relevant messages to a finely targeted audience. At the same time, most studies based around consumer shopping patterns and habits have shown that a customer’s buying decisions can be influenced in-store and at the point of sale. Therefore, the challenge in the current retail environment is focused on creating a relationship with the consumer by delivering some form of branded experience and not just products on a shelf. This has led to plenty of interest in digital signage as an effective advertising medium. In terms of its value proposition it can both increase sales and save costs due to superior shopper engagement, compared to traditional in-store communications.

Technology Eco-System

The technology used in a digital signage network comprises various devices and services. The basic function of a digital signage system is to serve content to displays that can range from smaller sized screens to huge electronic billboards. They can be LCD, LED or plasma displays. Media players are used to receive and store video, audio, graphic and text assets through an IP network and display the content according to a pre-defined play list. Software comprises media player software that serves the content to the displays, content management software that controls the scheduling and distribution of content and device management software that monitors the network. In addition, the value chain consists of content providers, A/V integrators, ad agencies, consulting firms, tech support and Internet connectivity service providers etc. Chart 1.1 shows the value chain and industry structure of the world digital signage systems market for 2011.

The Business Models

There are four basic models typically seen in the digital signage deployments worldwide. These are:

  • The merchandising or brand-driven model
  • The client funded advertising model
  • The network operator funded advertising model
  • The informational network model

Chart 1.2 depicts the business models in the world digital signage systems market for 2011 with emphasis on network ownership, ROI impact expected and content run on the signage screens.

The Challenges

As a fundamentally advertising-oriented project, digital signage is yet to become a mainstream medium in key regional markets including the US and Western Europe. Several successful deployments have been identified in verticals such as healthcare, government, education and transport, but retail has relatively lagged and continues to do so following the economic downturn of 2008. Additional challenges include the following:

  • Historically, the perception about the digital signage industry from a customer standpoint has been that it is a complex and laborious undertaking. The medium is unfamiliar and there are a plethora of vendors offering displays, software solutions, media players, consulting services, content management and application design and so on.
  • The potential retailer or mall owner also needs to consider the costs and effort involved in setting up a network and maintaining it.
  • Clients have limited or no experience when it comes to creating brand focused and engaging content that works best with in-store digital media. Several pilot projects in the industry failed for the simple reason that the same content was played repeatedly in loops for a period of months or that the core message of the content was lost in the clutter of extraneous details. Content that is not refreshed often loses its perceived value over time. The common thread in most failed pilot projects is that the content was an afterthought and was not designed and executed for the in-store medium.

The Opportunities

Encouragingly, the acceptance of digital signage is growing rapidly with the emergence of several genuine turnkey providers in the market, taking charge of the entire project management aspect from the concept stage. Solution providers have developed expertise in back-end research and proactively participate in the content development strategies since the majority of prospective clients have limited experience in dealing with this medium. Partnerships are also being formed between hardware and software participants, AV integrators, and satellite connectivity providers. The customer now has a single point of contact between themselves and the numerous suppliers, who take charge of every process in the successful completion of network deployment.

The industry has also seen the entry of a number of network aggregators, who make it easier for ad agencies to make media purchases by standardizing and integrating ad space from different small and medium-sized out-of-home networks. This expands the average size of networks thereby making it comparable to traditional mediums like TV and radio. Once the economies of scale are achieved, ad agencies will regard signage as a genuinely profitable venture since the aggregated networks allows them to invest their advertising dollars in a way they are comfortable and familiar with.

Another sign that the industry is maturing is the growing awareness about the importance of a content strategy at the very outset. And crucially, the industry has been boosted by several projects aimed at standardizing measurement and analysis of in-store media. Point of Purchase International (POPAI), the retail marketing trade association, initiated its own study to study consumer behavior and the role of digital media in the marketing mix. Apart from this, the Out-of-Home Video Advertising Bureau (OVAB) released its “Audience Metrics Guidelines” that enable the calculation of “Average Unit Audience” based on certain criteria. While the success of these ventures is not guaranteed, it has facilitated in bringing digital signage in alignment with traditionally measured advertising channels like TV or radio.


The digital signage industry is on the cusp of market development and rapid growth. Frost & Sullivan believes advertisers’ waning confidence in traditional mass media will continue unabated over the next few years, further fanning the cause of digital signage as a medium that can influence the shopper at the “moment of truth”. Chart 1.3 captures the various stages in the evolution of the digital signage market as it matures and joins the mainstream marketing mix.

Hakkında salimbuge
IT Consultant

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