NBC Universal’s move to host an “upfront” presentation later this month to sell its out-of-home TV ad space to major media buyers is the largest attempt so far to elevate the fast-evolving digital signage media properties to the level of annual TV buys. The presentation that comes ahead of the traditional TV Upfront event in the spring is probably also aimed at offsetting the potential losses in TV advetising revenue that may be caused by the continuing writers’ strike. Most analysts predict that many marketers may not be willing to commit to TV shows whose future is unclear.
While the writers’ strike may be a catalyst for NBC’s decision to sell its new media assets more aggressively, the NBC’s initiative also looks like part of a bigger strategy. Last summer NBC became a content provider and media sales rep for a number of digital signage networks , including PRN (over 1000 screens in Shop Rite and Albertson’s retail chains, with Wal-Mart’s In-Store TV not participating), over 500 screens in taxi cabs and about the same amount of gas-pump station screens. And now looks like a perfect time to start pitching this newly aggregated and promising space. (more…)
January 8th, 2008
Brian Dusho
Analysts at Yahoo Finance and MediaPost’s Search Insider predict a slowdown in ad spending on traditional media. Both observers, however, are confident that the recession will not affect online advertising, which has been expanding healthily in 2007.
While traditional media is hurt by such factors as the general economic slump, the housing crisis, the writers’ strike and continuing fragmentation of its declining audience, “… the explosive growth of ad networks—firms that place advertising on websites—will make it easier for advertisers to spend money on the internet,” says the author of Five Media Trends in 2008. (more…)
December 28th, 2007
Nurlan Urazbaev
eMarketer forecasts that out-of-home video advertising spending in the US will total $2.25 billion in 2011, up from $1.26 billion in 2007. The growth is fuelled mainly by introduction of digital, video and wireless technologies that are redefining this “old medium”, says the latest report by eMarketer.
The report’s summary points out the following factors contributing to the rise of the out-of-home video advertising (aka digital dignage) market: (more…)
December 26th, 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.” (more…)
November 20th, 2007
Nurlan Urazbaev
While she completely agrees in general with the statement that advertising will undergo “tectonic” changes in the next few years, Diane Mermigas of MediaPost is concerned that the IBM survey and other research has not yet offered any recipes as to how exactly marketers should be handling the changes:
“… we need templates for change.
And that’s where the best intended research and surveys fall short. Media players and advertisers are desperate for concrete ideas, business models, creative formats. They need a road map on how to alter their existing infrastructures, operations and processes to accommodate the new digital ways. They need particulars to help them construct personalized solutions. Too many pricey consultants are still dealing in generalities, not specifics. (more…)
November 14th, 2007
Nurlan Urazbaev
According to a new survey by IBM, “The next five years will hold more change for the advertising industry than the previous 50 did. Increasingly empowered consumers, more self-reliant advertisers and ever-evolving technologies are redefining how advertising is sold, created, consumed and tracked,” – write IBM’s Saul Berman and Bill Battino in today’s MediaWeek.
The article summarizes global shifts in advertising trends as forecasted by more than 2,400 consumers and 80 advertising experts polled by IBM. I would like to point out the parts that are relevant to digital signage:
“… Measurement: Advertisers are demanding more individual-specific and involvement-based measurements, putting pressure on the traditional mass-market model. Two-thirds of advertising experts IBM polled expect 20 percent of ad revenue to shift from impression-based to impact-based formats within three years.” – Since digital signage is a strong impact-based media type, this trend will benefit its growth. (more…)
November 12th, 2007
Nurlan Urazbaev
The writers’ strike may undermine the already weakened network TV and will benefit alternative digital media platforms, predicts Diane Mermigas in today’s MediaPost article.
Mermigas says TV stations will have to offer sizable makegoods to advertisers for the audience numbers lost during the strike, which, in her opinion, will cripple the networks. At the same time, “The Internet search and social networking kings are giving advertisers new options to connect with engaged target consumers, establish ongoing relationships, push cost-effective pitches and make certain transactions. They provide click-accountable direct consumer connections and immediate, personalized communications,” she writes. While Mrs. Mermigas does not mention digital signage (or its synonyms) directly, it is fair to assume that this type of new media falls into the category of “alternative platforms” she refers to. (more…)
November 8th, 2007
Nurlan Urazbaev
“The concept is simple: Take the millions of lines of time-stamped playlist data from the signage network, place them alongside the millions of lines of time-stamped sales data from the POS, and compare. Look for patterns that reveal which bits of content are having an impact on sales,” writes James Bickers of Self Service World magazine and digitalsignagetoday.com in his article, recapping the latest approaches to measuring digital signage campaigns effectiveness in retail. (more…)
November 7th, 2007
Nurlan Urazbaev
Digital outdoor media was further defined and validated as a new and unique medium by outdoor industry visionaries at the Out of Home Advertiser Forum in New York last month. Their analysis was summarized in today’s OAAA newsletter as follows:
• Digital outdoor is not mobile television:
As such, it shouldn’t be used like or created
as television. The message is clear: outdoor
creative requires a unique perspective
and recycled print or television ads
just don’t cut it.
• Digital media’s greatest value is as an ad
delivery device: The speed and flexibility
digital allows enables advertisers to use
outdoor in targeted, time-sensitive ways.
It’s a perspective advertisers have never
had before, and it adds depth and
breadth to their marketing tool kits. (more…)
November 5th, 2007
Nurlan Urazbaev
Ken Liao from SeeSaw Networks sent this great response to Daniel Parisien’s post “The Dirty Little Secret of Digital Signage: Proof of Play vs. Audited Proof of Display“:
“Daniel – great topic. We, at SeeSaw, whole-heartedly agree with the industry moving toward much greater accountability. It is refreshing to see your position that proof-of-play goes beyond logs of a playback device and needs to focus on playback at the screen level.
While we generally agree with your four components of an accountable digital signage reporting solution, we would respectfully add two additional factors: traffic and awareness. (more…)
November 2nd, 2007
Nurlan Urazbaev
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Brian has spent the last four years working with retailers, advertising/ media companies, and technology companies to develop successful business models in the digital signage industry and assisted in the formation of several of the industry trade organizations. He is an active member in 
Nurlan is director of marketing for BroadSign International. He has been with BroadSign since day one and brought along a lot of media expertise from his diverse career that ranged from a reporter to a radio executive, entrepreneur and owner of a media consulting company. He is a staunch proponent of standardization and ROI measurements for digital signage advertising.
