Metrics Lag Behind the Rapid Growth of Out-of-Home Video Networks: Ad Age

November 20th, 2007 Nurlan Urazbaev

The fast-expanding “market that includes everything from elevators to urinals” lacks universally recognized metrics, writes Advertising Age. The article points out that some sectors of out-of-home video networks (another synonym for “digital signage”) have been experiencing double-digit growth in recent months; and to sustain this growth, networks need industry-wide metrics.

Ad Age describes individual attempts by networks to bring accountability to the medium by partnering with companies like Nielsen for audience measurements (Ideacast), or by trying to fit into criteria similar to those used by agencies and national advertisers for buying traditional media (SeeSaw). But overall, the author says,  ”those separate efforts don’t really address the need for a system that would allow media buyers to easily compare different offerings.”

The Out-of-Home Video Advertising Bureau (OVAB), formed in January, sees its main goal in bridging this gap. According to OVAB President Kim Norris, the organization intends to create a system that will “look similar to Nielsen’s TV ratings, since the majority of the metrics are impression-based.”

This is certainly a noble mission and accomplishing it will boost the digital signage market dramatically. However, I still see it as an intermediate step towards a metrics system that is more organic to the nature of digital signage, especially in retail. That is, a system based more on “cost-per-transaction” and “cost-per-action”, rather than on “cost-per-impression”. As some analysts predict, impressions will be still be used as a tool to fine tune campaigns if the sales lift numbers do not meet the targets, and for first-time buys.

I would like to mention here our previous posts on the subject: see the Digital Signage ROI category archives.

 

Entry Filed under: Digital Signage Evolution, Digital Signage ROI, The Big Picture, Uncategorized