Digital Signage Could Soon Emerge to be the Next Killer Technology

A Look into the Evolution of Digital Signage, Contemporary Terms Describing its Various Networks, Core technologies that Form the Basic Industry Infrastructure, Impact on Specific Industries and the Emergence of New Technologies that Synergistically Complement the platform

By Bradley Sean Susser

November 29, 2011

Brief Table of Contents

Introduction...................................................................... .....................................1
1. Chapter One: Digital

Signage................................................................................... ..2-4 Defining Digital Signage Description of Digital Signage Screens In its Historical Technological Context
2. Chapter Two: Digital Signage Adversely Impacting Various

Companies.4-5 Specified Examples of Technology Adversely Impacting Companies Company Examples of Financial Numbers Depicting Negative Impact
3. Chapter Three: Three Core Network Screens That Depict Digital

Signage5-8 Point and Wait Network (POW) Point of Sale Network (POS) Point of Transit Network (POT)
4. Chapter Four: Digital Signage is an Information

System8 Applying System Design Analysis to Digital Signage

5. Chapter Five: Digital Signage

Infrastructure..9-17 Network Transmission Mediums: LAN, WAN, Satellite and Wireless Types of Digital Signage Software Hardware Media Players and Screens

6. Chapter Six: Preexisting and New Technologies Emerging Into

the Digital Signage.17-20 RFID Technology and NFCs Company Specific Examples Social Networking Company Specific Examples Biometrics Facial and Gesture Recognition Company Specific Examples
7. Conclusion

.21 Bibliography 22-25 1 Introduction

The innovation and the speed at which new technologies continue to advance in modern day society have been unfathomable to say the least and the evolution of the Digital Signage industry is no exception. In fact this newest mass communications medium is anticipated to be one of the fastest growing media around the world over the next five years according to Magna Globals latest forecast, with a compounded annual growth rate (CAGR) of 15.2% from 2011 to 2016. That is three times the rate for the media business overall which Magna sees growing at a mere 5% to 5.5% in the same time period.24 PQ Media, a research firm specializing in global media econometrics stated that worldwide 2009 revenues grew 16.3% from $5.56 billion in 2009 to $6.47 billion in 2010 and expects it to grow another 16.9% in 2011 to $7.56 billion all in amidst the economic downturn which still continues to this day.23 In the paper outlined below you will see why the formidable financial figures highlighted above are a reality, the definition of Digital Signage, how it has evolved, the three contemporary terms used to describe the various Digital Signage networks, the core technologies that form the basic infrastructure of these networks, the impact its had on

specific industries and the emergence of new technologies that synergistically complement this platform. Inclusive is examples of companies that are exploiting this technology and making use of this burgeoning medium.

24

Sass/Media Daily News, E. (2011, January 21). Media Post Global Digital Out-of-Home Revenues Will Double by 2016 . Mediapost.com
23

Sass/Media Daily News, E. (2011, April 5). Digital OOH Media Revs Soar 24.5% in 2010. Mediapost.com.

Digital Signage Could Soon Emerge to be the Next Killer Technology A Look into the Evolution of Digital Signage, Contemporary Terms Describing its Various Networks, Core technologies that Form the Basic Industry Infrastructure, Impact on Specific Industries and the Emergence of New Technologies that Synergistically Complement the platform

1. Chapter One: Digital Signage In describing the term Digital Signage it is often used interchangeably with Digital out of Home Media, whose acronym is DOOH. DOOH is the presentation of targeted information via a network through electronic screens, projectors or other types of display devices. Remember this is not broadcasting. Broadcasting transmits one to many people this is narrow casting transmitting one to a selected targeted audience. Keith Kelson author of the book Unleashing the Power of Digital Signage Content Strategies for the Fifth Screen gives a simplified description of what he terms the five screens leading up to digital signage in its historical context and as you will see all these screens start with the first in a series of technological mediums that reach out to a mass audience providing news, advertising and information.9 The

first screen he dubs the invention of Dickson and Edisons Kinetoscope which was the construction of the first motion picture in 1894 during the gilded ages, patented in 1897. Dickson was actually an assistant to Edison who initially wanted to make use of the invention by configuring pictures with sound to work in conjunction with one another.30 Thomas Edison was

Kelson, K. (2010). Unleashing the Power of Digital Signage, Content Strategies for the 5th Screen. (1st ed.). (p. 20 to 59). Burlington, MA/United States: Elsevier.
30

Thomas A. Edison, Inc. Motion Picture, Broadcasting and Recorded Sound Division, Library of Congress (n.d.).

Three Acrobats. 1899.

3 hoping the new device would increase revenues of his phonograph but the device was incapable of having pictures and sound synchronize with one another and at first only one viewer at a time could watch a movie even though Edisons intention was for mass audience viewing. The Kinetoscope was a small cabinet and at the top was a peephole comprised of a lens that a single individual could look through to view a short twenty second clip that moved in a cylinder like fashion. One of the first films the two produced together was called Fred Otts Sneeze and they created one of the first film studios, the Black Maria back in 1893. The second screen he described was the advent of television. The inventor of television was Philo Taylor Farnsworth who filed his first patent known as the television system which was approved in 1930.2 This invention not only allowed for families and friends to view images and sound simultaneously but in a more relaxed setting. Here is where you could really entertain people and give them sufficient time to watch programs which in turn made advertisers recognize that such an evolutionary device could really be complimentary to any companys product and service offerings. The third screen was the first digital one propagated 40 years later with the personal computer. This lead to the ability in the early 1990s for people to first begin in mass to access the Internet whereby they had the capability to view information anytime on demand

through technology that connected millions of different networks on a global scale. The device we all know as the mobile telephone which configured the personal digital assistant (PDA) with cellular technology Kelson titled the fourth screen. This was another truly revolutionary device because it was the first time you can be anywhere at any time while accessing information holding a handheld screen. It is the Nokia Communicator 9000 which was released back in 1996
2

Brigham Young High School Alumni (2011). Philo Taylor Farnsworth Mathematician, Inventor,Father of

TelevisionBrigham Young High School Class of 1924 . Brigham Young Academy.

4 that combined cellular along with the PDA.31 Back than although you could communicate with people from any distance with a certain degree of viewer controls none of the screens could deliver messages from a marketer, employer or other entity to inform the end user and guide decision making becoming the precursor for Kelsons final screen which is the thrust of what this paper is about, Digital Signage!

2. Chapter Two: Digital Signage Adversely Impacting Various Companies Digital Signage has caused significant declines in revenue for many companies adversely impacting their primary business models that focused primarily on print media, radio ads, static billboards and even television due to other emerging technologies like the TIVo where you could record your favorite shows and then view them at different times allowing you to skip over commercial advertisements significantly minimizing an advertisers bang for their buck. If ad revenues are down through traditional print and television than where are capital

expenditures being allocated? If you said Digital Signage than you right on! Newspaper McClatchy Co. who owns the Miami herald reported in its latest 3Q a 21% decline in ad revenue from the same period a year earlier.18 E .W. Scripps Co. reported 3Q Television revenue down 11% from the same period a year ago.21 The New York Times Co. and USA Today publisher Gannett Co. reported smaller drops in 3Q ad revenue but drops never the less. Interestingly enough Gannett Co. stated back in its January 2011 earnings transcript that its Captivate
18

Ortutay/AP Business, B. (2011, October 21). McClatchy says 3Q earnings lower, ad revenue down. Businessweek.com
21

Pollock/Dow Jones Newswires (2011, November 8)L. EW Scripps Swings To 3Q Loss On Newspaper . The Wall Street Journal
31

Viken, A. (2009, April 10). The history of Personal Digital Assistants 1980 2000 Technology. Agilemobility.net.

Network Division, which they acquired back in 2004, saw revenues up 44 percent.7 Captivates Digital Signage solutions along with Microsofts Windows Embedded Compact technology help to power this extensive network of DOOH screens that you see integrated into many office elevators and lobbies throughout numerous parts of the country. The Empire State Building Willis Tower (formerly Sears Tower) in Chicago and the Prudential Center in Boston are some notable buildings that utilize Captivates Digital Signs. Captivate Networks screens engage almost 3 million viewers every day.3 This is one of the few spaces that Gannett has benefitted from helping to make up for losses in its more traditional business markets. In fact I foresee consolidation and an increasing number of merger and acquisition (M&A) activity as more companies begin to acknowledge the power of DOOH, knowing what it can do for them and their shareholders alike. Organizations particularly those that need to increase shareholder value and sales will need to grow not only organically but through acquisitions. Larger conglomerates who embrace Digital Signage sooner rather than later will clearly have a

competitive edge. Perhaps now you are beginning to notice a trend.

3. Chapter Three: Three Core Network Screens That Depict Digital Signage Three types of networks make up the core of the Digital Signage Industry and its various vertical applications. The first we all experience a lot especially if you work or visit an office you will frequently come across these screens in elevators and lobbies. This is an
7

GANNETT CO., INC. (2011, January 31). Gannett's CEO Discusses Q4 2010 Results - Earnings Call Transcript . SeekingAlpha.com
3

Captivate Network A GANNETT COMPANY (2011). What is Captivate. Captivate Network.

6 example of what is known as a point and wait (POW) network.9 These signs can also be seen in the back of taxi cabs, waiting on a retail line to order food, in banks, located in bars , restaurants, universities and they can be for internal corporate communications just to name a few. People who view these screens typically have sufficient time exposure to allow for longer messages with greater repetition. Messages can be changed faster, more easily and less expensively. In fact you can time your messages hourly, weekly and monthly. If you have ever been inside McDonald's, the chain changes its Digital Sign messages continuously. In the morning the screen may promote Egg Mcmuffins during lunch they may change its sign to promote its salads or at night an Angus Chipotle BBQ Bacon Burger may be displayed. Digital Signage used for corporate communication is also rapidly expanding. As soon as an employee enters the building they can be made aware of the days agenda, where meetings will be held, any important issues that need to be addressed. This can be delivered by a digital sign tied into the companys information system, database via an RSS feed. Employees will not need to interrupt workflow for staff meetings and announcements or sort through emails for pertinent

information which all aids in increasing productivity. Manufacturing operations will become more efficient as real time supply chain information is relayed to employees through screens. Interactive touch screens may also be used to streamline process control and training content can be distributed throughout the facility without interrupting an employees workday.

The second type of network is known as the point of sale network (POS).3 The consumers are shoppers that encounter screens close to a product or service for sale and where consumers make their buying decisions like in a mall or retail store. Retail market signage is being
Kelson, K. (2010). Unleashing the Power of Digital Signage, Content Strategies for the 5th Screen . (1st ed.). (p. 20 to 59). Burlington, MA/United States: Elsevier.
9

7 driven by lack of knowledge of retail staff and a lot of employee turnover. The need to effectively, communicate ads and sales to customers on retail floors can reduce the number of employees needed helping to lower additional overhead costs. Wal-Mart in 2008 deployed screens referring to it as the Smart Network to communicate timely and relevant information regarding product features and benefits about brands and content to customers affectively. Wal-Mart completed its chain wide deployment in early 2010 monitoring up to 27,000 screens. In February 2010 At the Digital Signage Expo in Las Vegas, the retail giants creative director, Andy Johnson, said the Smart Network has proven, in the previous 18 months, to increase sales for many of the products that it advertised. Sales increases by department included electronics up 8%, over the counter up 23%, food up 13% and health/beauty up 28%.20

Finally the last network is the point of transit (POT).9 This type of sign can be seen while driving on a highway and on top of a moving taxi cab, bus or where there is high pedestrian traffic. Usually this is viewed when youre in transit or you see something else in transit. Many

fortune 500 companies make use of POTs major highways around the country like the 405 freeway in Los Angeles or areas such as Times Square in Manhattan, a major destination hub for high pedestrian traffic. The deployment of these signs is so widespread there is no need to provide detailed company specific examples however increased visibility in the use of a POT
9

Kelson, K. (2010). Unleashing the Power of Digital Signage, Content Strategies for the 5th Screen. (1st ed.). (p. 1 to 262). Burlington, MA/United States: Elsevier.
20

Pinhammer, Sr. /Retail Technology Analyst, PlanetRetail, J. (2011, April). Customer Facing Technologies: Enabler for a New generation of Pinpoint Marketing Volume VII Issue II(p.28-30). PlanetRetail

network is clearly advantageous to any organization who makes use of it. As a side note Clear Channel Outdoor Holdings and Lamar Advertising Company are two of the biggest players that comprise of the POT network.

4. Chapter Four: Digital Signage is an Information System Technically speaking Digital Signage is an information system that requires a methodology in and of itself. Like with system analysis and design you can apply many of the same principles for a Digital Signage system. You can use system initiation to identify the opportunity or objective, analyze and understand the objective, Identify solution requirements and expectations, identify alternative solutions, choose the best course of action, design the chosen solution and implement the solution. Digital Signage is an ecosystem of interconnected and complex technologies that all act together in unison to produce images we see on a screen but equally important for any organization is to closely examine their potential return on

investments (ROIs) and/or return on objectives (ROOs). Many organizations already have a network used for internal communications along with the Internet for data transfer but that network must be looked at carefully to see its configurability capabilities and evaluate its options very closely when deploying Digital Signage. If used correctly organizations can leverage their existing networks to exploit the DOOH arena while significantly increasing both top and bottom line numbers.

5. Chapter Five: Digital Signage Infrastructure The infrastructure of a Digital signage system or the ecosystem as Hewlett Packard coins it consists of hardware, software and the network it will run on. Many providers offer turnkey solutions but first will start with the basic components that comprise of a digital signage network. As a footnote this paper will reference primarily large scale digital signage deployments. The network consists of several different distribution methodologies that are used but let me emphasize if an organization has an internal network for example in making use of an enterprise resource planning (ERP) system that integrate business processes in sales and marketing, human resources, finance and accounting and manufacturing into a single software system they must consider how to structure the digital signage network without compromising other mission critical applications so in having said that lets explore the numerous physical distribution mediums that can be used in Digital Signage. These mediums comprise of satellite, Internet, Local Area Networks (LAN), Wide Area Networks (WAN) or wireless.

Now if you are a large corporation you typically would have your own internal server but may want to connect to a media player or multiple media players which in turn connect to a digital signage display via a virtual private network (VPN).5 A VPN typically works by using a shared public telecommunications infrastructure such as the Internet while maintaining privacy through security procedures. VPNs encrypt compressed content at the sending end, decrypting

Cisco Systems (2007, September). Digital Signage Distribution Methodologies Overview. Cisco.com

10

and decompressing it at the receiving end, sending the content through a tunnel that cannot be entered by content that is not properly encrypted. An additional level of security involves encrypting not only the content, but also the originating and receiving network addresses. Firewalls are also set up throughout a system via whatever network medium you use. In order to save on leased line costs many companies install and configure VPNs over broadband. The only negative is lack of complete control as many Digital Subscriber Lines (DSL) or cable Internet Service Providers (ISPs) often constrain the amount of bandwidth in order to allocate it for additional users on a single line to minimize congestion. This can limit the ability for streaming content to the digital signage edge node over this type of connection. Preplanning of content is extremely important and securing a proper failover solution which is a secondary system that takes over when the primary system fails can keep the digital signage network operational when connectivity is lost.

Now on the other end a company can govern their own flows of data with a private

leased line which offers greater flexibility and control for streaming content.5 Through this service a firms own Information Technology team manages the data and lines between sites exactly at the point of saturation. They do this by decreasing or increasing the committed information rate (CIR) from their service provider. CIR is really just the average bandwidth guaranteed by the ISP but the only downside is the increased cost.

Cisco Systems (2007, September). Digital Signage Distribution Methodologies Overview. Cisco.com

11 Satellite links have been used to transmit video for quite some time as they are multicast enabled so they are a solid distribution medium for video like using an MPEG-2 format, the most common format used in DOOH today.5 Satellites use video encoders to digitally encode a signal into a proprietary MPEG-2 format. The signal is sent through multicasting to satellites beaming the signal down to antennas, than decoding it through an in house decoder. It then converts back to an analog signal which can then be sent to the media recorder to be displayed on the digital sign. Cisco for example now offers a module for its routers that provides the ability to affectively move Internet Protocol (IP) traffic across satellite links as a transport medium for Digital Signage. Cisco believes that the optimum transmission medium for DOOH is broadband via a LAN or WAN connection however this may not be feasible for many large scale deployments. Cisco does around $43.7 billion in yearly revenue and has cash on hand of around $44.39 billion compared to debt of around $16.85 billion.4 Do to the amount of money this organization has you can take a good educated guess its poured a large amount of capital into research and development (R&D) to determine which transmission mediums would be the most beneficial to their clients. This is why you could

probably take it to the bank that any opinion this organization has to offer is a solid one since it provides services for all transmission mediums. After all this is one of the largest networking and communication device companies in the world with extensive knowledge of The Open System Interconnection (OSI) protocol suite, Transmission Control protocol, Internet protocol (TCP/IP) as well almost any protocol you can name.6 Digital Signage has been
4

Cisco Systems (2011, October 29). Cisco Systems Inc. form 10Q for the Quarter Ended October 29, 2011. Securities and Exchange Commission
5

Cisco Systems (2007, September). Digital Signage Distribution Methodologies Overview. Cisco.com Cisco Systems (2009, December 17). Open System Interconnection Protocols. cisco.com.

12 a key part of Ciscos efforts in the sports arena business, where the company has played a role in such facilities as the new Yankees Stadium, football stadiums for the N.Y. Giants, N.Y. Jets and Dallas Cowboys. Yankee stadium has screens almost everywhere and when a person gets up to go to a food concession stand or the bathroom they will not be able to miss a play. They also can receive news, weather etc. The stadium is one of the most wired, connected and Digital Signage enabled stadiums in all of baseball and sales of tickets have risen due to Ciscos deployment.11 Cisco in February of 2011 announced in a release that more than 3,000 customers have deployed its Digital Signage technology.32 When talking with Bob Kosar a representative of Hughes Network Systems, a division of EchoStar, like most mediums each media player in the network will be provided a unique IP address (B. Kosar, personal communication, November, 2011). Now according to Cisco optimal configuration is attaching a digital media player endpoint directly to the LAN back to a central management station, as wired networks allow for multiple streams to run across a wired LAN producing optimal bandwidth with minimal effect on the LAN itself.

The next option would be a wireless one. In fact Sprint has been pushing its latest 4G

option (fourth generation) wireless network services along with partners such as MediaTile a worldwide leader in cloud-based digital signage solutions.17

11

Lawson/, S. (2008, November 13). Cisco plans networked screens at Yankee Stadium: The new Yankee Stadium will feature digital signs from Cisco that can show live game play all around the venue. PC World.
17

NetWorld Alliance Media | Sponsored by Sprint (2010). Cellular-Based Digital Signage: 2010 Network Alliance Media.
32

Villazon/Cisco Systems, C. (2011, February 21). Cisco Reaches 3,000-Customer Milestone in Digital . Cisco's Technology News Site.

13

This organization also has a venture with Verizon as well according to Melissa Oakes a representative of MediaTile (M. Oakes, personal communication, November, 2011). Now 3G which it offers stands for the third generation of mobile standards and the networks are wide area cellular telephone networks which evolved to incorporate high speed Internet access and video telephony. Talking with Mrs. Oakes of MediaTile she exclaimed that the company offers two options. They have a separate media player which you will need a separate cell card for the player and attach it to the back of an LED or LCD display via an HDMI cable. The other option is that they offer in their own displays embedded media player software and cellular technology. Mrs. Oakes further exclaimed one of the main differences between using 3G and 4G is that 4G can now offer live television feeds to the screens in conjunction with other content files. Sprints take on its 3G and 4G wireless technology is why go through the hassle of deploying a network when one already exists around you. The base stations are there, the cell towers are there, the radio equipment is there. The project is 90 percent complete. The other 10 percent is for the digital signage client to make the decision to use Sprints network.17 Now although Sprint has been pushing its 3g and 4G technology you should always analyze and examine all

wireless options. In further using Sprint as an example it provides unlimited data services for a flat fee unlike most of its large competitors which has caused the company to have a significant amount of data users and a shortage of wireless airwaves. This can cause further strain on Sprints network and slow down data transmission speeds having a negative impact on any

17

NetWorld Alliance Media | Sponsored by Sprint (2010). Cellular-Based Digital Signage: 2010 Network Alliance Media.

14 Digital Signage network. That is why continuous emphasis on the significance of evaluating various vendor options is an essential element in optimizing your network.

The next step after reviewing the various distribution mediums is the software. Software that runs on a server acts as the brain of the system handling scheduling the distribution of media to the player software. Server software can come in several different types of configuration depending on how the user will interact with it and how it is run. The most basic type of server software controls the network or Internet enabled player software with the user interacting with the server directly through a graphical interface. The server software in this case will allow the user to import content utilizing files like AVI, or MPEG video, WMV, standard graphics such as JPEGs, GIFs or TIFs, WMA, etc. into the system, manage the screens and publish data to the network.15 A more advanced server system may relocate the user interaction to an entirely separate software component for management and scheduling. This means the server here will accept incoming schedule information and content and distribute it to the appropriate screens.

Another server type revolves around a specific model of signage software known as software as a service (SAAS) using cloud technology. This means the user will purchase a subscription to the server system which will have a web based control interface to allow for content importing, scheduling and screen management. The software is hosted by a vendor.

15

NEC (2008, December 29). Digital Signage in Higher Education An NEC White Paper. NEC Unified

15

This carries a monthly fee in most cases and removes the need for the user to purchase and administer their own server system. Some software components may have separate scheduling and player management components that are not integrated into the server software. This simply means those functions exist in separate applications and will connect to the server via a network or the internet allowing flexibility in having multiple people interact with the system. This software will import content and create the schedule which can then be uploaded onto the server for distribution to the software player. Some packages will also allow the ability to monitor screen health through management software and may have playback recording integrated here as well.

While on the discussion of software one company that appears to have a unique Demand Side Platform (DSP) with the incorporation of impressive analytical tools and just in its infancy stage is rVue Holdings (J. Kates CEO, J Wilson CTO, J. Bolt CSO, Attended Webinar, July 2010).22Although the company is still relatively small it has formulated relationships with screen owners in which the company has access to 166 DOOH networks controlling 751,440 digital screens. The business model is what makes this company intriguing as its very similar to

eBay. Advertisers or agencies pay a transaction fee for negotiating and placing ads through rVues web based platform that displays digital media advertising campaigns in a targeted manner based on rVues partnerships with screen owners located in numerous parts of the country. These owners can also be situated in different business environments. rVue also offers the tools for advertisers and advertising agencies to customize campaigns
22

rVue Holdings Inc. (2011, November 11). rVue Holdings, Inc. Announces 2011 Third Quarter Update. marketwatch.com & www.rvue.com

16

for details, such as location, customer preference, product availability, current events, and other retailer needs. In addition, the company provides content production services, which include custom creation of informational spots, and technical services that comprise network monitoring, troubleshooting, and maintenance services. This is all done via the companys Internet website and is really the only organization that I have seen that offers this type of DSP platform in this space.

The next link in the chain is the media player where most of the network transmission mediums have to be directly connected. This is the hardware that needs to be used to playback the content. At its most basic level a digital signage media player will accept incoming data from a software source either from a network or storage media and convert it into video format that can be output through a standard connector to a display device like an LED or LCD screen. There are so many variations of this media player theme but they generally breakdown into 2 categories. Computer based players and standalone hardware players. Each player based on its manufacturer will have various options for video output to the display. Internal storage, digital signage software packages, peripheral inputs, control outputs and network interfaces. Media players are going to sit attached to a display and translate all information that comes in over a

network or internet from the server and software into actual video the displays can handle. Computer based media players are the most common and then there is Stand-alone based media players. Audio is an option as well but it is not as significant compared to the ecosystems other components. Cables and connectors are often overlooked as being the weakest link in the chain but using poor quality cables and connectors can cripple the image quality of the display.

17 Finally there is the displays themselves which come in various sizes and most of us have heard of these types of screens as they are used in many of our homes. Im referring to DPL, LED and LCD monitors which are now being configured with all sorts of smart technology as you will soon see examples of in the next chapter that follows. .
6. Chapter Six: Preexisting and New Technologies Emerging Into

the Digital Signage Currently there are many new technologies that exist now or are rapidly approaching but have not been utilized on a massive scale as of yet however virtual reality is becoming a reality. Smart phones are now beginning to offer enormous opportunities in the area of Digital Signage.16 For example IBM UK is taking advantage of high radio frequency identification devices (RFIDs) which can access a screen up to more than 90 feet or a subset of the RFID technology, New Field Communication (NFC) chips which can only transmit from a maximum of twenty centimeters away are already embedded in many global phones which store a lot of our personal information. In fact Apple is thinking of adopting RFID circuitry into their IPhone 5 to work as an electronic wallet configuring with any given wireless network. Clear Channel one of the biggest billboard players in the market has currently piloted RFID and even Bluetooth technology programs. Think of how this will work. A sensor inside the screen will

identify you and deliver you a personalized advertisement or you can download content from the screen itself via your cell phone like a coupon perhaps, join rewards loyalty programs or you can use your mobile device to engage with games via the digital sign. In using an analogy the digital sign can almost act like a PC which uses cookies to track your Internet movements. This could be done in mass as the screen tracks your mobile phone. Social Networking will also be a huge trend in digital signage. In the article titled Levis and Facebook Prompt
16

NEXCOM International (2011, November). Digital Signage Responds to its Audience. NEXCOM.com.

18 Your Friends to Improve Your Buying Experience you can use your mobile phone even if your friends are not currently present in the store with you. If you see for example a particular style of Levis jeans you can scan the product and upload it to your Facebook account and get a response or opinion from your friends to see whether they like the product or not.19 This also allows the brand the ability to expand its marketing reach by using an in store customer to subconsciously reach out to multiple friends whom they communicate with on a social networking site via their phone. As you can see from above mobile phone applications offer immediacy, interactivity and ubiquity. This is quite advantageous to a retail establishment as the Digital Signage industry now has the ability to capitalize or piggy back off smart phone technology. What we are also currently seeing is the emergence of retinal scanning and facial recognition with cameras incorporated in digital signs determining your age and gender. This was featured not long ago in an NEC ad which has a Digital Sign pull up an ad and target you in such a way that it can determine your likes and dislikes, separating out older customers from younger ones and a number of other functions that are out of this world. These intelligent devices know almost everything about a customer. Ironically the Japanese have been deploying this type of technology for the last several years but now the global business world is finally beginning to take notice. Biometric facial recognition technology which uses software

that measures and scans an individuals facial characteristics will now allow displays to call a prospective customer by his or her name and deliver customer specific advertisements as they

19

Owyang/ Industry Analyst at Altimeter Group, J. (2010, April 30). Social Commerce Breakdown: How Levis and Facebook Prompt Your Friends To Improve Your Buying Experience.

19 come in close proximity to one another. In an October 17, 2011 press release NEC announced that it just provided Fast Retailing Co., Ltd., and their new global flagship store, UNIQLO New York Fifth Avenue with digital signs by which the retailer controls through NECs cloud based network from its headquarters in Japan.26 The release also goes on to say that that NEC can also provide Panel Director, a total digital signage solution that provides advanced facial recognition and audience measurement technologies. As an additional benefit embedded screen cameras can also provide security surveillance. When Microsoft released the Kinect motion gesture sensing camera add-on for their Xbox 360 gaming console 2010 it was a game changer for sure no pun intended.27 Some companies are creating Microsoft gesture-like biometric recognition technologies configured with cameras located inside the Digital Signs. NTT Docomo one of Japans largest telecommunications conglomerates as well as Microsoft licensed GestureTeks gesture recognition technologies whose interface applications include multi-touch and 3D camera tracking.1 The private company has been developing gesture based technologies for over 25 years and although it has allowed for Qualcomm to buy up some of its gesture recognition technology assets the company is retaining other assets in continuation of its gesture-controlled public display and digital signage business. Notice the key words in the previous sentence, retaining assets of its gesture-controlled public display and digital signage business. Thats

probably because they also recognize that by retaining these core assets they have the potential to penetrate a significant amount of market share in an industry that is on the verge of rapid expansion. Now imagine walking past a store whereby just through the gesture of your hands
26

Takahashi/NEC, M. (2011, October 17). NEC Provides Digital Signage for UNIQLO's Largest Global Flagship Store, "UNIQLO New York Fifth Avenue". marketwatch.com.
27

Terdiman, M. (2009, June 1). Microsoft's Project Natal: What does it mean for game industry?

Asmar, T. (2011, July 25). Qualcomm Acquires Gesture Recognition Assets from GestureTek.

20

you can move various garments located on a screen to conform to your body type. There is no longer a need to pick out specific garments and physically try them on in a fitting room. You just walk up to the screen and virtually try a piece of clothing on.

Table 1

Above is a Column Chart Depicting PQ Media Research Firms Global and U.S. Digital Signage Revenue Growth from 2009-2011. Numbers Were Highlighted Above on Page 1 Material Reprinted by Watershed Publishing (MarketingCharts.com, 2011)

21 7. Conclusion Throughout history there have been a number of advancements but very few were able to crossover and impact a multitude of industries all at the same time which is what makes Digital Signage such a game changer. Some of these technologies have been around for years such as the likes of the Internet which was created by the U.S. government in the late 1960s, back then known as ARPANET. However it is only until the last couple of decades that we have

the applications to now make use of these technologies. The Digital Signage business model takes preexisting and emerging technologies such as the various transmission mediums, software analytics, hardware, 3D signage, mobile marketing, biometrics technologies, RFID and social networking just to name a few and merges those all into one very powerful marketing tool that I believe will enhance audience measurement, interactivity and targeted advertising to a level that is unimaginable. The question many people need to ask themselves is will this industry grow into becoming as profitable as targeted advertising has proven to be on the Internet? I anticipate it will unless regulatory constraints such as privacy issues limit its potential. This is why to stay ahead of the curve the industry should take corrective action by designing default mechinisms and privacy controls that will disallow for the storage of personal information to appease both end users and regulators alike. In having said that DOOH technology will be beneficial not only to the organizations that choose to deploy Digital Signage but more importantly engaging to the end user further leading to vast improvements in ROI and ROO. If you can recall the movie The Minority Report which depicted the films time period to be around the year 2054, ironically Stephen Spielberg who directed the motion picture back in 2002 probably had no idea that the Digital Signs that were portrayed in his feature would be on the verge of potentially becoming todays next killer technology!

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