Out of Home - July/August 2014 - 11

continued from last page

the estimated 20 million flat-panel display devices
now deployed in North America.
The focus is on engagement to enhance
the visit or usage experience, and increase
the productivity of that location. Audience
targeting and dayparting are common, based on
integrating viewer activity with databases and
other application systems such as inventory, safety
messaging, event calendars and internal news.
Wherever an audience can be discerned and
described, the potential for advertising revenue
exists. Suppliers, merchants, business and
community partners often appreciate the ability to
align with the location and communicate.
The financials hold up very well. At rates
ranging from $3 to $15 per thousand (CPM) and
the inherent ability to structure a message for a
specific audience on location, the advertising/
promotional investment is very attractive.
At the same time this new revenue can offset
system capital and operating costs, while being
of forum to establish stronger links between the
location and partner organizations.
With $170 billion spent annually in North America
on paid advertising, according to eMarketing (reflecting
estimates by others), it's been suggested that an equal
amount is spent in promotional and merchandising
efforts including owned, point-of-purchase and
community relations messaging.

And, where it may be difficult to gain paid
advertising, the potential exists to tap into other
budgets or shift allocations to take advantage of
location-based digital messaging.
Market-development funds or promotional credits
are commonly provided to retailers in support of
in-store marketing. Suppliers to a municipality,
hospital, campus, military base or other facility can
easily see the benefit of profiling their products and
services in support of ongoing business relationships.
This sponsored messaging can be more than an ad;
it can demonstrate support for the goals and patrons
of the organization where the display is based.
The promotional message on-campus of a local
computer store for example, could include tips
to improve the effectiveness of study and writing
papers. A local pharmacy can align with the goals of
a hospital, providing information that can improve
general health or reduce ailments.
The ability to improve the location experience
and better engage viewer at a facility, along with the
potential to generate revenues, makes the owned use
of digital signage very compelling.
The action plan is very straightforward.
An organization should first identify how digital
signage can allow them to better meet their
communication and business goals. An Analysis
of Return on Investment, the less-tangible Return
on Objectives, messaging strategy and sources of

Lyle Bunn is an analyst, advisor and educator in
North America's digital place-based media sector
who has assisted hundreds of organizations to gain
advantage from the medium, and helped to train
thousands of professionals. Lyle@LyleBunn.com

contributors
from our

11 | out of home magazine | july | august 2014

content will form the basis of an earned
digital-media approach.
The potential of available third-party funding
from promotional or sponsored messaging can be
evaluated in building the business case.
The technology infrastructure and its operation
can be sourced in the way that makes sense for
the organization. It could be, for example, that
internal capabilities would be used (such as an
information-technology department) versus
external supply such as an OOH provider or
network, cloud-based sources, digital signage
or others.
System and updating of content is usually
undertaken by, or under the authority of, someone
in the display-hosting enterprise. Standards
of messaging practice, a content style guide
and templates can assure the suitability and
effectiveness of individual messages and the
overall media approach.
As the use of digital signage as out-of-home
owned media increases, its attractiveness for use
by individual enterprises also increases.
Out of Home - July/August 2014

Table of Contents for the Digital Edition of Out of Home - July/August 2014
