Wednesday, December 21, 2005

Google Digital Signage

Google is aggressively turning into a broad media company. They have shown the flexibility in their organizational structure (strange for a public company) to try new methods for selling advertising.

Google Advertising Sales Examples:

-- Google Might Sell TV Ads

-- Google is testing a cost per thousand methodology for selling internet advertising.

-- Google is selling rich multimedia advertising banners on their search pages. Google has always been known as the fast search engine because of zero multimedia advertisements.

-- Today we read that Google is selling print ad inventory for consumer and business magazines. See the story Google Readies 'Phase Two' Of Print Ads Project.

Hey Google. Is digital signage media buying next?

Thursday, December 15, 2005

Viacom Outdoor becomes CBS Outdoor

CBS will separate from a new Viacom Inc. at year-end 2005. They are planning to re-brand the outdoor division as "CBS Outdoor". Though this seems to be a small change to us, media analysts are speculating what impact this name change may have on sales.

Typically - on advertising billboards (electronic billboard or vinyl) - you will usually see the media owners name on the bottom of billboards.

CBS will need to consider if they should place "CBS Outdoor" on their billboard. Why? Because competitors may hesitate to advertise on their billboard. As an example of this potential backlash -- do you believe ABC, NBC or Fox Television will advertise their TV programs on CBS billboards? We're not sure - but it does raise the argument of changing the nameplates on the billboards.

Mediapost has a good read on CBS Outdoor.

Monday, December 12, 2005

Nielsen Measures Opportunity To See A Digital Sign

Nielsen Outdoor and its technology partner, RDP Associates, have developed a proprietary GPS device – the Nielsen Personal Outdoor Device, or Npod™ - about the size of a cell phone, which people carry in their pockets, purses or wear like a cell phone.

The Npod measures the opportunity to see an outdoor digital sign.

We're not clear about how this will effect digital signage for our LCD and Plasma screen digital signs, but it looks promising for roadside LED billboards. Read about the Nielsen Npod.

Wednesday, December 07, 2005

Cramer Bullish on Roadside Digital Billboards

Surprisingly, Cramer commented about the potential of the electronic billboard market. On Cramer's CNBC show 'Mad Money' Tuesday, Cramer said buy Lamar and wait for Clear Channel Outdoor.

Billboards are making a comeback, said Jim Cramer on "Mad Money" Tuesday, and he wants viewers to buy Lamar Advertising (LAMR:Nasdaq ). Lamar has ad space on billboards, buses, bus shelters and benches -- all places you can't miss, Cramer noted. Because of the increase in the use of digital video recorders such as TiVo, advertisers are moving away from TV advertising. Other forms of advertising, such as the Internet and billboards, are gaining share.

"You can't TiVo a billboard," he said. Lamar is adding digital billboards, which allow it to show multiple ads on one space and should increase sales. And Nielson is coming out with a rating system for billboard advertising, Cramer said, which should make advertisers more comfortable as the can quantify the effectiveness of their ads.

In response to a question about fellow advertiser Clear Channel Outdoor (CCO:NYSE), which went public last month, Cramer said the IPO pricing was disappointing, and he would avoid the stock. He would look to buy the shares around $16 or $17. Clear Channel Outdoor closed Tuesday at $18.87.

Tuesday, December 06, 2005

King Kong takes over Times Square

Well yesterday was the premiere of Peter Jackson's remake of the 1933 classic King Kong. In fitting fashion, the premiere was held in Times Square. This was a grand event that featured an unveiling of a huge statue of Kong. In addition, promoters arranged for all the (standard format 4x3 or 16:9) LED signage in Times Square to simultaneously display a three minute video clip of the ape in action played back to back. There are a total of 19 LED displays in Times Square that met the qualifications for display, which made coordinating this a monumental effort. Webpavement managed signage was controlled real time and remotely from our network support center in Georgia using our powerful Sign Administrator and Sign Server software.

It was pretty exciting here at Webpavement. There was a conference call with all of the other major times square LED sign operators. Clear Channel, MTV, LG, Reuters and many others were on the phone synching up our clocks. At a set time, we all displayed a black video clip - then launched the King Kong promotional video at the same time.

You can imagine the scene at night time. Times Square goes DARK - then King Kong is blasted to all of the screens. Very Cool.

Monday, November 28, 2005

New York City Outdoor Pricing

Ran across a good article in NY Magazine. It list the monthly rates for out of home media in New York City.

Read the article on New York city outdoor advertisement pricing.

Friday, November 18, 2005

Digital Signage Hot New Madison Avenue Trend

Well - digital signage is continuing to gain traction. During a recent gathering in New York for the Traffic Audit Bureau's Out-of-Home Advertising Forum, out-of-home digital signage is proving to be a hot new trend according to marketers, agencies and outdoor media vendors.
Just as other major media--online, cell phones, hand-held devices, and cinema--are emerging as new "screens" for distributing TV-like commercials, new digital billboards are making outdoor the next big screen--literally. "You really have a chance to think of it as a video medium just like television," said John Marson, senior manager-media planning at packaged goods giant Kraft Foods, reflecting a sentiment echoed throughout the conference. Asked how marketers like Kraft might feel about paying higher, more TV-like advertising rates for shorter interval digital outdoor ad messages, Marson said, "It will be compared to television. There will be the big challenge--getting the right metrics."

The article "Ad Execs Begin Thinking Of Outdoor As TV Calls For New Metrics" goes on to describe a number of benefits for the digital signage industry.

Wednesday, November 09, 2005

GVExpo Digital Signage Pavilion

Webpavement will have knowledgable resources located in Booth # 755 in the Digital Signage Pavilion at GV Expo in Washington DC November 30 - December 1, 2005. Our booth is equipped with an Internet connection so you can see our flagship product - Webpavement Sign Server.

Contact Webpavement to schedule an appointment with a representative.

The Government Video and Technology Expo (GVExpo) is the largest, most focused event representing the exploding Government AV, Video, Broadcast, Digital Signage, Collaborative Conferencing, Multimedia & Technology, a $9.4 billion market.

According to a Pro AV Purchasing Practices Study, 41% of Government delegate respondents indicate they plan to purchase digital signage equipment in the next 12 months. Click to view the digital signage government purchasing chart.

Wednesday, October 26, 2005

Future Digital Signage Business Models

Webpavement published an article in the October/November INS-Asia issue. The magazine has a readership base of 10,000+ in the Asia Pacific region. We thought you might find it interesting.

Here it is in pdf format: Future Digital Signage Business Models

Friday, October 14, 2005

New Methods for Measuring Outdoor Advertising

The Traffic Audit Bureau (TAB) is the outdoor media industry's official measurement provider for outdor advertising firms. They conduct traffic audits that serve as the basis of outdoor media circulation estimates. The circulation audits are known as "daily effective circulation" or DECs.

The Traffic Audit Bureau has recently issued a request for proposal to a variety of potential research suppliers to develop a new audience ratings system for the outdoor industry. The RFP is seeking a new system that would use new ratings data to provide demographic information about what type of people were exposed to an outdoor ad, when, and for how long.

The demographic data mixed with the TAB's circulation data will provide total audience estimates similar to all of the major media, putting outdoor on a level media planning field for the first time. This is apparantly good news for outdoor electronic billboard (digital signage) advertising providers such as Lamar and Clear Channel.

Here is the rest of the story from Mediapost.

erinMedia, which has taken control of a promising outdoor and radio audience measurement firm called Navigauge, is one of the players expected to compete for the outdoor industry's ratings system. Navigauge uses a system that incorporates global positioning satellite (GPS) technology into cars so that advertisers and agencies know exactly when, where, and how fast people were going when they were exposed to outdoor advertising. The problem with the Navigauge technology is that it does not account for pedestrian traffic.

Arbitron, which has been developing a portable people meter system carried by individuals, also plans to compete, confirmed a company spokesman--but its proposal would be more of a longer-term one that relates to a broader rollout of the PPM technology, not one devoted exclusively to outdoor audience measurement.

Arbitron was a leading contender alongside Nielsen to develop a GPS-based measurement system for outdoor, but has since abandoned that technology, while Nielsen has raced ahead. Nielsen's outdoor unit was recently awarded a contract to use that system to provide outdoor ratings in South Africa, and on Wednesday released the first findings of GPS-based outdoor ratings in the United States from a system it has been testing in Chicago. While Nielsen didn't actually make any of that data available to the press, it hailed the achievement as a milestone, citing testimonials from several industry leaders, including Starcom MediaVest Group's Kate Sirkin and the TAB's Joe Philport.

The Nielsen Outdoor technology, which was developed by RDP Associates, is known as the Npod, a cell phone-sized device that panelist carry with them
throughout the day, much as they would Arbitron's PPM devices.

Because it has made such advances, Nielsen Outdoor is seen as a favorite to win the TAB's contract, although it is possible that several different vendors may supply components of research to the TAB, which would be integrated with other data gathered and compiled with the TAB to produce a unified rating estimate for outdoor audience exposure.

Most significantly, the data would be owned by--and the research methods controlled by--the outdoor industry, its advertisers and agencies, as opposed to ratings systems for TV, radio, magazines, newspapers and online, which are owned and controlled by research suppliers.

Recently, the ad industry began discussing the possibility of forming a joint industry committee, or JIC, to do the same for other media, including television--but the effort was abandoned when Nielsen threatened an antitrust suit. Last month, the Advertising Research Foundation unveiled the Audience Measurement Initiative (AMI), which will function in many ways like a JIC, but will not own or control the research developed by suppliers.

Thursday, October 06, 2005

Digital Signage Bandwidth II

Previously we posted an article about bandwidth as it relates to the future of digital signage. The first bandwidth topic was WIMAX.

We'd like to introduce you to a new technology in the bandwidth category. The technology is called Evolution Data Optimized (EVDO). EVDO is basically wireless cellular broadband access. EVDO works most everywhere your cell phone does. EVDO has about a 10 mile range from every Verizon or Sprint Cell Phone Tower.

EVDO offers high speed connections for your digital signs without wiring! This opens up new locations for digital signage including taxi cabs, roadside, subway entrances and other locations where property owners do not want you to intrude on their location with new infrastructure. Remember - no wiring is required for your digital signs - with the exception of power. Download speeds average 400-700 kbps and are capable of reaching up to 2.0Mbps.

EVDO meets the bandwidth and security requirements of both indoor and outdoor digital signage.

Verizon has been advertising this techology on television very heavily as of late. Coined Verizon Broadband Access, they claim to have the largest high speed wireless network in the US currently representing 84 markets, 140 million users and 426 US airports. Verizon is expanding the service coast to coast in the United States.

Webpavement will have an exciting announcement for digital signage as it relates to EVDO very soon.

EVDO is based on the CDMA 2000 standard and is expected to grow in Brazil, Japan, Korea, Israel, Australia and Canada.To learn more about EVDO, visit the Wikipedia encyclopedia information of EVDO.

Tuesday, October 04, 2005

Retail TV Checkout Channel

Following a year long pilot, PRN announced it would be implementing a Check Out channel at Wal Mart stores. This is a very interesting model. The Wal Mart TV network is now a hybrid network. In other words, they are using the broadcast signal for tv displays within the stores (aisles, end caps etc.) and a narrowcast signal to checkout tv displays. The checkout tv displays will show localized content such as weather. Read the AKA story.

pssst.. Webpavement technology can run mixed mode networks.

The response from the ad agency / media crowd is mixed. Veterans in the media industry witnessed NBC and Ted Turner install checkout channels in the past. These 2 networks were too costly and arguably ahead of their time. Read Media Post's riff on the Checkout Channel.

In today's multi-channel, fragmented media environment - digital signage deserves the attention and traction that we are experiencing.

Thursday, September 22, 2005

New York City Outdoor Contract

Cemusa has beaten outdoor advertising giants JC Deceaux, Viacom & Van Wagner et al for New York City’s 20-year contract to sell ad space on bus shelters and newspaper kiosks, according to the city's Department of Transportation.

Viacom Outdoor was the existing contract holder. Cemusa is a Barcelona based firm that is seeking a stronger presence in the United States. Cemusa’s other U.S. operations are primarily located in Miami-Dade County, Boston and San Antonio.

WOW - Hard to compete with this offer..

The 20-year agreement is a franchise arrangement. Cemusa will pay the City of New York $1 billion for the 20-year contract as well as create 3,300 new bus stop shelters, 330 new newsstands and up to 20 automatic public toilets. Cemusa said in a statement it also expects to create 100 new jobs in New York City.

Welcome Cemusa..

Wednesday, September 21, 2005

Marketers Beef Up Ad Spending Inside Stores

Full credit to Lyle Bunn, Director, Digital Display & Rich Media BTV+ (and Chair, Education Committee, POPAI North America Digital Signage Group) for sending Webpavement the following information.

Thought you would appreciate this heads up - the Page 1 headline of the September 21 Wall Street Journal is “In a Shift, Marketers Beef Up Ad Spending Inside Stores”.

The lengthy article starts with “Proctor & Gamble believes shoppers make up their mind about a product in about the time it takes to read this paragraph”. The Proctor & Gamble approach to in-store marketing, Wal-Mart TV, ad agency response and examples of in-store marketing are profiled.

The article is very good news for the profile of digital signage. Some other highlights..

  • In store marketing spending was $17 billion in 2004 and is projected to accelerate to over $23 billion by 2009
  • P&G (makers of Tide, Crest, Pampers) has cut its commitment to advertise on cable channels by 25% and its broadcast TV allotment is down about 5%. At the same time overall ad spending rose slightly.
  • Last year 122 new products were launched on Wal-Mart TV.
  • Wal-Mart sells advertising like TV networks, imitating “upfronts” the ad sales extravaganzas put on by the networks.
  • PRN says its rates are comparable to those of cable TV.
  • Some TV executives say in-store advertising isn’t necessarily competitive. Chris Carlisle, Exec. VP of News Corp.’s Fox network contrasts the relaxed home atmosphere with that of a rushed shopping environment. Fox itself buys ads on in-store networks to pitch DVDs.
  • No standard system for measuring the audience for in-store ads exists, and therefore no easy way to charge for the space. The fees for each project are negotiated on a case-by-case basis, a time-consuming task.
  • A wrinkle is in how ad agencies get paid. For years, agencies were paid a percentage of the overall ad budget. P&G changed that model several years ago because it worried ad agencies would naturally gravitate toward costly TV ads. It now ties ad agency compensation to product sales increases.

Emily Nelson and Sarah Ellison have written an excellent article. This is one to frame.

Friday, September 16, 2005

Billboard Inventory Selling Fast

With all of the factors driving digital signage growth, the demand for out-of-home billboard inventory has risen to levels unseen since the dot-com days of the late ’90s - aka the "Roaring Ninety's". In 1999, billboards were selling at rate-card prices as opposed to the typical 25% discount. Higher demand causes buyers to book desirable locations earlier -- which means marketers often have to plan their out of home before TV.

“It’s certainly tighter than it has been, but, you know, the economy’s tighter than it’s been as well,” said Jack Sullivan, director of out-of-home media for Publicis Groupe's Starcom USA. Other media buyers agreed that they’re seeing a growing number of marketers add outdoor to their media mixes, or increase existing spending in the area.

Chicago, Los Angeles and San Francisco are more or less sold out through the end of the year, although there remains room in Atlanta, Boston, New York and Philadelphia. Some buyers worry sites are getting picked over -- and say it’s not unusual for them to be booking locations into the middle of 2006.

According to the latest figures, the first half of the year notched 9% outdoor growth, according to TNS Media Intelligence; Nielsen Monitor-Plus reports a 6.9% rise.

Digital Signage solves many of the problems identified above. In our opinion, many static billboards warrant a change to an electronic format. With electronic billboards - you can sell under short notice, you have more inventory, you don't need crews to change advertisements because they're not physically printied on vinyl.

Please contact us to discuss your electonic billboard(s) project. Webpavement has been contracted for electronic boards in Washington DC, Times Square, Ohio, Madrid and other locations.

Tuesday, September 06, 2005

Interactive Campaigns in Times Square

The famous Reuters sign in Times square must have a Return on the Intital investment by now. Numerous campaigns and advertising run on the display. Here are a couple of interactive campaigns.

The program includes a Web site,, where visitors can pose questions about the car to chief engineer Suguya Fukusato, and upload photos to the Web site to enter a sweepstakes to win the car. Some of those photos will be used to form a photo mosaic on the Reuters digital billboard in New York's Times Square, starting Sept. 3. Story - No Pics

In its customary way of going for ever bigger and more different promotions, Nike purchased a build-your-own-shoe media placement on the 23-story-high Reuters sign on the Reuters Building in Times Square. Story and Picture of Reuters Sign

There are many more examples. Oh - here is one by CK you might enjoy. It doesn't involve a digital sign and it's not on the Reuters sign, but it is - some would say - interactive.

Calvin Klein
This campaign featured a "Live Billboard". See PICTURES.

Tuesday, August 23, 2005

NEC Bluefire works with Scala or Webpavement

Guess what folks - the NEC Bluefire computer that was designed for digital signage works with Webpavement's Sign Host Player or the Scala IC3 Player. You do have a choice!

Choosing the Webpavement or Scala software is a user preference // similar to the preference of using a MAC or a Windows PC.

A recent press release caused a stir up to digital signage providers such as Webpavement. A letter was quickly crafted to clear things up by NEC's Pierre Richer – Vice President, Visual Systems Division.

We look forward to working more closely with NEC.

Here is the letter from NEC.
From: Pierre Richer – Vice President, Visual Systems Division
Re: NEC’s Recent Signage Announcement
Date: August 22nd, 2005

Many of you may have seen a recent press release from NEC outlining a partnership with a specific software company to serve the in-theater-advertising segment of the digital signage market.

This announcement caused a great deal of confusion among our channel and signage partners.
This memo will hopefully clear up the following points.

This press release has nothing to do with the Visual Systems Division.The press announcement was released by one of our sister divisions and is focused exclusively on the in-theater-advertising market.The charter for this sister division is to create a network of in-theater advertising outlets. They will not be serving any advertising opportunities outside the theater market.

The Visual Systems Division works with a wide range of software partners to create digital signage solutions. The Visual Systems Division works with all qualified signage companies and we encourage our customers and channel partners to work with their preferred vendor. We also provide an extensive list of vendors to those customers or channel partners that do not have a preferred partner. This allows them to research all the options and make their own decisions based on their business needs.

Thursday, August 11, 2005

Industry Analysts Bullish on Digital Signs

The billboard business may be worth $8 billion to $9 billion, according to New York-based Harris Nesbitt analyst Leland Westerfield, who rates Clear Channel shares "outperform."

This comment comes off the heels of the announcement of Clear Channel's anticipated $350 million billboard IPO. *

More Importantly..

Sales and profitability of billboard ads probably will increase as the industry shifts to digital boards that can flash ads for many companies, rather than traditional displays that present a single ad, said David Bank, an analyst with RBC Capital Markets in New York.

Webpavement is a technology company ready for the shift to digital advertising boards. Contact us to learn about our value proposition for your outdoor firm.

* It should be noted that Clear Channel will retain a controlling stake in the new public company.

Tuesday, August 09, 2005

Clear Channel Outdoor IPO

Clear Channel is in the midst of a corporate restructuring, including an initial public offering of its fastest-growing and most profitable operations: outdoor media. While total revenues declined 1 percent to $2.46 billion during the second quarter of 2005, Clear Channel's outdoor advertising sales rose 7.0 percent to $684.5 million. The outdoor media growth was most pronounced in the U.S., where Clear Channel is the largest supplier of outdoor advertising.

The company announced plans to file an IPO for Clear Channel Outdoor Holdings on Wednesday, which should provide more details about the outdoor sector's performance.

Friday, July 29, 2005

Digital Signage Acquisitions

Consolidation activity is heating up in the digital signage space.

French Company Thomson to Acquire San Francisco Based PRN Corporation. Story here.
PRN manages in-store television networks in over 6,000 locations across leading retailers including Wal-Mart, Sam's Club, Costco, Albertsons; Best Buy and Circuit City. All locations are in North America. The purchase price is approximately $285 million payable in cash, including a normalized level of working capital. This acquisition furthers Thomson's expansion into the implementation and management of video networks. PRN will be part of Thomson's Network Operations Services business unit in the Services Division.

3M to buy Mercury Online Solutions for an undisclosed amount. Story here.
Under the terms of the deal. Mercury will remain headquartered in Bainbridge Island, near Seattle, while reporting to 3M’s Commercial Graphics Division, according to 3M spokesperson Donna Fleming. Fleming sees the acquisition as a way to accelerate the company’s entry into an “exciting and rapidly-growing marketplace”, by combining Mercury’s skills and processes with 3M’s global reach. “The addition of Mercury Online Solutions Inc.’s digital-signage networks is a natural extension of 3M’s existing graphics business and allows us to use our global services platform,” said Robert Doughty, division VP of 3M’s Commercial Graphics Division.

Tuesday, July 19, 2005

WPP Consolidates Mediaedge and MindShare Into New Outdoor Media Giant

WPP Group is once again consolidating components of its massive media services organization to dominate an important, emerging market - out-of-home - which is expanding rapidly as it becomes infused by new digital technologies, measurement systems and new place-based venues, which have analysts projecting it will be one of the fastest growing sectors over the next several years.

Finally -- Digital signage has been recognized as a media product in the out-of-home category.

A survey conducted by the American Association of Advertising Agencies earlier this year projected out-of-home would be the hottest ad medium in 2005 - surpassing everything except for online and branded content - among the AAAA's membership.

Read the entire story.

Wednesday, July 13, 2005

Focus Media Initial Public Offering

As we reported in October of 2004, Focus media (a digital signage network) follows through with initial public offerring on the NASDAQ exchange.

Focus Media Holding IPO prices above range; audiovisual television displays in China (FMCN) 17.00 :Focus Media Holding prices its IPO at $17, above the expected range of $14-$16. The co operates the largest out-of-home advertising network in China using audiovisual television displays instead of traditional billboards to broadcast advertising. Its network was located in 70% of commercial buildings surveyed in 13 cities across China, including 72% of the commercial buildings in Beijing. The co believes its significant market share, combined with the exclusivity and renewal terms contained in over 90% of its agreements with landlords, creates high barriers to entry. Its displays are placed primarily in high-traffic areas of commercial office buildings such as in lobbies and near elevators, as well as in large retail chain stores. The advertising market in China is one of the largest and fastest growing in the world. The co is profitable and 2004 revenues were $29.2 mln, up from $3.8 mln in 2003... The Chinese IPO market has been all over the board, with Shanda (SNDA) being a huge success, but China Fin Online (JRJC) not doing so well. However, FMCN's growth, market share, favorable contracts, and small deal size of 10.1 mln makes this attractive for traders. Goldman is the lead underwriter. If this IPO does well, expect its chief competitor, Target Media, to make its debut late this year or early next.

Tuesday, July 05, 2005

Webpavement Meets the Needs in Education

Sound and Communications recently published an article (2MB pdf) written by Dawn Allcott detailing the implementation of Webpavement digital signage technology at the University of Houston - Downtown. Allcott did a nice job describing the use of digital signage in education, the university's requirements and reasons why Webpavement was the right fit for UHD's digital signage network.

When UHD turned to Webpavement they already had a firm grasp over the audio/visual components they would be using in their digital signage network. The focus was then placed on software requirements, features and capabilities. Ultimately UHD chose to purchase preconfigured Webpavement media players and Webpavement e20 Sign Server to meet their stringent requirements. All components were shipped preconfigured to UHD's requirements - ready for plug and play installation and training was conducted remotely. In this very successful implementation Webpavement resources never had to come on site. Here is the press release.

Other clients have a need for greater involvement with the audio/visual components and design of their network. Rest assured Webpavement has the experts on staff to assist in these areas also as we did with the digital signage network implementation at the Ronald Reagan Building and International Trade Center. No matter how large or small your digital signage needs are - turn to Webpavement and you'll be glad you did. Contact the Webpavement team of digital signage experts to discuss your specific project requirements.

Tuesday, June 28, 2005

Supermarket Advertising Works - WPP and Mediaedge Study

The Sensor(TM) Study was a national telephone survey released by Mediaedge:cia, a leading media communications specialist company and part of WPP's media investment management company GroupM. No details were released on the number of telephone surveys completed.

Finding of the study:
  • 51% of shoppers still move through all the aisles in the grocery store, making them a perfect target for exposure to in-store media. But most younger shoppers (aged 18-24) do not follow any specific patterns, making it a greater challenge to reach them.
  • 64% of 18-44 year-old grocery store shoppers claim their children influence their brand decision.
  • More than a third of grocery store shoppers say that in-store ads influence them to purchase a new product or to try a different brand than they usually use.
  • 44% of grocery store shoppers notice the average in-store ad. The most noticed are end-aisle displays and store leaflets/magazines; the least-noticed are shopping cart ads and in-store TV.
  • Furthermore, more then 3/4 of those who notice the in-store ads are likely to purchase the advertised brand.
    -- Different age groups respond to different types of in-store media:
    -- Product demonstrations are more effective amongst older shoppers (55-64)
    -- Store leaflets and magazines get best response from shoppers aged 45-54
    -- Shelf signs are more effective amongst 25-44 year-olds
    -- Product packaging, check-out counter ads, and ads around store entrances and parking lots get better results with 35-44 year-olds.

We agree with many of the results of the survey, even the statement that "in-store TV was the least noticed". There are a lack of nationwide in-store deployments within supermarkets, poor television placement, low frequency of fresh content and low vendor advertising support. Telephone survey respondents probably didn't even know about in-store tv, hence the finding that it was least noticed.

This will change as the industry gets smarter about deployments with integrated programs that work.

Thursday, June 23, 2005

Digital Signage Benefits from Mass Media and Technology

We understand that we are not original when discussing items that will benefit the digital signage industry. It is a known fact to digital signage insiders that the dilution of mass media will lead to increased opportunity for the digital signage industry.

This post is an effort to aggregate and compile a list of the trends and technologies that are creating advertising chaos within brands, ad agencies and media buying outlets.

In a future blog post or whitepaper we will summarize the top 10 technologies and trends that support a faster growth rate of digital signage.

Please feel free to add comments or email us with your additions. We do not mind if your comments are short.

Wednesday, June 22, 2005

Digital Signage Industry Report List

We receive numerous inquiries from all over the globe for digital signage research, charts, figures etc. Here are the digital signage fee based business reports. Please let us know if we've missed any. Of course you can always contact Webpavement for assistance with your network opportunities.

Published by : RocSearch Ltd.
Distributed by : Global Information, Inc.
Price: US $1200.00
Published: June 2004
Digital Signage Report Link

Published by : Platt Retail Institute
Distributed by : POPAI
Price: US $750.00 & $250.00
Published: May 2005
Digital Signage Report Link (2 Reports Available)

Published by : Weinstock Media Analysis
Distributed by : Weinstock Media Analysis
Price: US $$30,000
Published: April, 2004
Digital Signage Report Link

Published by : InfoTrends/CAP Ventures'
Distributed by : InfoTrends/CAP Ventures'
Price: US 11,249.00
Published: December 2004
Digital Signage Report Link

Tuesday, June 21, 2005

Digital Signage Patent

Ok. This was sent to us by an anonymous blog reader. The following patent application is analogous to the company that tried to patent the click thru (a hyperlink).

This is just too funny. Patenting the entire digital signage industry...only in America ;)

Click to see to the full patent application.

United States Patent Application
Kind Code
Keele, Robert ; et al.
April 21, 2005
Digital media presentation system
A digital media presentation system suitable for use in providing digital signage or similar types of advertising. A video display system is used as an example of a digital media presentation system. The system includes a server that provides a user interface. Through the interface, a user may specify a schedule of assets to be executed on video display units. Execution of assets may result in display of video information in one or more windows on the video display units. Execution of assets may be synchronized within the windows and the information in each window may be coordinated to provide significant flexibility in display of information through the video display system. Application of the invention more generally to digital media presentation systems is also described, using examples of systems that integrate audio and visual information.

Wednesday, June 15, 2005

Frost and Sullivan Digital Signage Report

In a recently-issued report entitled North American Digital Signage Markets, Frost & Sullivan positioned Webpavement as the Contender. Webpavement - established in 1999 - was also cited as a Top 5 leader in market penetration - higher than Sony, Convergent and Coolsign.

Infocomm Digital Signage Pavilion 2005

Webpavement digital signage would like to thank all of our VARs, customers and potential partners for visiting our booth at Infocomm's inaugural Digital Signage Pavilion. The show exceeded expectations with over 26,000 attendees.

For those of you that swiped your badge for more information, VAR packages or demo accounts - we will be in touch with you soon. If your project is of urgent nature, you can contact us immediately here.

Thursday, June 02, 2005

US Advertising 1st Quarter Results

U.S. Advertising Market Grows 4.4% in First Quarter 2005 to $33.5 billion.

Here are the graphs:

Q1 2005 US Ad spending by media: Chart

Q1 2005 US Ad spending by category: Chart

Source: TNS Media Intelligence

Digital Signage is not a category or media type - yet - but it's coming!

Friday, May 27, 2005

LED Gaining Traction in Digital Signage

According to iSupply, a leading analyst firm covering the video display industry, LED video technology has become the preference for indoor and outdoor venues due to its affordability, brightness, durability and scalability. The worldwide market of LED video displays, valued at $639 million in 2004, is expected to rise to $755 million in 2010. iSupply also projects the retail-signage market, which occupies the largest share of LED text, graphics and animation displays, is expected to grow from 41,248 sq. meters in 2005 to 69,832 sq. meters in 2010.

Contact Webpavement to discuss networked LED digital signage networks.

Friday, May 20, 2005

Infocomm Expected to Draw 25000 Attendees

According to the International Communications Industries Association (ICIA) executive chairman Randal Lemke, this year's show in Las Vegas will draw 700 exhibitors and 25,000 in attendance. This year will again feature the very popular Digital Signage Pavilion.

Visit Webpavement in the digital signage pavilion booth 8024. To schedule a demo or meeting, please contact us for an appointment with a sales or technology associate.

CAPV North American Commercial Digital Signage Market

InfoTrends/CAP Ventures has released a study priced at $15,000 USD. The study is 300 pages with 155 figures and graphs.

Key findings of this study include:
  • Sales of hardware, software, installation and integration services, and support for all commercial display applications totaled nearly $1.7 billion in 2004.
  • For networked display systems in retail and public spaces, network operation / management services and advertising revenues generated an additional $413 million.
  • This industry is expected to demonstrate a CAGR in excess of 25% over the next five years.
  • The list of industry vendors continues to change as companies leave and enter the industry, but is increasingly becoming segmented into a few leaders and a larger number of companies still working to create traction and critical mass.
  • Over the next five years, cost-effective LCDs will be the most popular technology for digital signage applications because of their longevity, reliability, low power consumption, and attractive price point.

Please contact Webpavement if you are interested in this study.

Tuesday, May 10, 2005

Chart of Times Square Electronic Billboard Pricing

Found a great guide to the fees and sellers at 23 prime Times Square locations. Pictures are included.

Media buys are typically sold on a minimum monthly contract. Pricing ranges from $75,000 - $850,000 per month.

See the grid.

Learn more about products needed to run networked Electronic Billboards.

Monday, May 09, 2005

Times Square advertising business annual estimate

The overall annual Time Square advertising business is estimated to be worth $69 million. Cost-per-thousand-viewers impressions for the area range from $2 to $5, compared to around $20 for a prime-time network TV buy.

The One and Two Times Square buildings have 11 spaces for digital signage advertising. Monthly advertising rates for the 11 spaces on the two landmarks are estimated at $200,000 to $350,000 each.

According to media sellers, the rental prices for ad real estate varies widely depending, in part, on size and -- like everything else in Manhattan -- location. Electronics giant LG is said to be paying $165,000 per month for its corner-wrapping placement space above Planet Hollywood at 45th street and Broadway. The Mountain Dew sign just below it goes for $175,000 a month. Washington Mutual's six-story-high three-dimensional display of a giant beanstalk section topped by a castle costs $165,000 a month.

Read the rest of the article.

Thursday, May 05, 2005

Cinemas Should Use Digital Signage Advertising

In response to the consumer distaste for pre-movie advertising (see our previous blog post), Loews theatres will stop lying about movie start-times .

Excerpt from article:

Loews theatres is abandoning its deceptive practice of advertising movie start-times that were 10-20 minutes earlier than the actual show time, and then forcing the customers they suckered into turning up early to watch commercials, a captive audience. This is great news -- let's hope the rest of the movie theatres follow suit.

Friday, April 29, 2005

Can Consumers Turn Your Digital Signs Off

According to AV Interactive's article, TV-B-Gone is a key-ring attached ‘zapper’ that turns off all the TVs within its infra red range.

Don't allow this to happen to your digital signs. There are non-consumer displays such as the Philips Business Displays that will prevent this from happening. Using these displays with NetLink software, you have a secure solution and much more.

Alternatively, you can also use your imagination to block the infrared signal.

Monday, April 25, 2005

Digital Signage Bandwidth

Many digital signage industry followers often read about the barriers to entry for digital signage networks. Frequently you will hear that lower display pricing will fuel digital signage growth. This is true - however we will introduce a new topic outside of the realm of displays that will open up a wider acceptance of digital signage.

The technology we are speaking of is BANDWIDTH. Higher speeds and lower costs of bandwidth will lend itself to increased networked digital signage.

The first topic on bandwidth we will discuss is WiMAX.

The technology that promises to bring wireless high-speed connections to entire metropolitan areas is on the way. It's called WiMAX and is backed by 140 companies -- from start-ups to chip giant Intel to telecommunications companies.

Intel (WiMAX site), one of the biggest backers of the technology, has shipped its first WiMAX chips to equipment manufacturers. Full-scale deployment of WiMAX is expected to begin in 2007. The company is also conducting about 50 WiMAX tests around the country to see how equipment from different WiMAX suppliers work together and how WiMAX service reacts to trees, buildings and different weather conditions.

Digital Signage Benefits:

-- Instead of a 150-foot range, WiMAX connects to the net from up to 10 miles!
-- WiMAX will be to DSL and cable modems what cellular was to land-line phones
-- Mobile electronic billboards and trains will maintain connectivity while moving! WiMAX knows how to seamlessly connect to the next access point - just like a mobile phone.
-- WiMAX offers fast T1 speeds
-- Lower bandwidth costs

There are many other benefits that will unfold for digital signage and numerous industries that will benefit from WiMAX. Stay up to date on WiMAX here.

Definition: WiMAX (Worldwide Interoperability of Microwave Access) is a standards-based technology enabling the delivery of last mile broadband wireless access as an alternative to cable and DSL. WiMAX will provide fixed, nomadic, portable and, eventually, mobile wireless broadband connectivity without the need for direct line-of-sight with a base station. WiMAX will offer enough bandwidth to simultaneously support hundreds of businesses (or digital signs) with T-1 speed connectivity and thousands of residences with DSL speed connectivity.

Webpavement will post more topics on bandwidth as it relates to digital signage in future blogs.

Friday, April 15, 2005

Get Your Groove On LED

Thought our readers would be interested in this message entry on Engadget (picture included).

It's an LED Dance Floor! It has 1536 diodes supporting 4,096 colors - Wow.

Looks like a good format for beverage ad insertions.

Thursday, April 14, 2005

Digital Signage to Benefit the Advertising Chaos Scenario

The Digital Signage industry will benefit from the so-called advertising Chaos Scenario.

In an epic 5,500-word front-page article in the April 4 print edition of Advertising Age, columnist Bob Garfield laid out a sweeping vision of an advertising industry caroming toward chaos and disruption wrought by the digital media revolution. Boiled down, his theory goes something like this: The marketing industry is currently whistling past the graveyard and largely ignoring signs of massive, fundamental changes in how the business of mass marketing will be conducted in the near future. The broadcast TV model is working less well each year and will eventually cave in on itself as it reaches ever-fewer viewers with a fare of low-quality programming and mind-numbing clutter. Marketers will increasingly abandon it.

But despite their glitzy promise, the aggregate of new digital technologies -- from Web sites and e-mail to cell phone content, video on demand & digital signage -- lack the infrastructure or scale to support the minimum amount of mainstream marketing required to smo!othly sustain the U.S. economy. The result, as the old systems are abandoned and the insufficient new systems struggle to carry an impossible advertising load, is what Garfield calls "The Chaos Scenario" -- a period of serious disruption moving like a tsunami through the marketing business as well as the economy and the broader society itself.

Outdoor Electronic Billboard Law and Regulation


Electronic billboard (Digital Signage) installation and the methods of advertisement presentation vary from state to state.

California electronic billboards are restricted from changing displays more often than every four seconds.

In Nevada, full-motion billboards are allowed on the Las Vegas Strip

Georgia forbids electronic billboards that change messages more often than every 10 seconds

Other states set an 8-second minimum between changes.

In Pittsburgh, Council recently passed a law that limits electronic signs to amber text or images on black background. Under that regulation, electronic message boards must be incorporated within traditional signs. They may be no larger than 24 square feet per side, each message must stay in place for at least 15 seconds, and no animation is allowed.

Only four states long ago banned electronic billboards: Maine, Vermont, Hawaii and Alaska

As for safety, the Outdoor Advertising Assn. of America (website) rejects claims that electronic billboards compromise public safety, pointing to a Virginia Tech study that found drivers are not distracted by billboards. The billboard industry, however, paid for the study and carefully avoided any detailed examination of electronic billboards.A much broader study by the Federal Highway Administration's office of real estate services reviewed research on electronic billboards and found mixed evidence about their safety.

A federal study found a widespread lack of understanding of the issue. "Unfortunately, the subject is not well documented," it says. "At this point, it appears there is no effective technique or method appropriate for evaluating the safety effects of electronic billboards on driver attention or distraction."

In a memorandum dated June 12, 1998, the Federal Highway Administration agency ruled: "After careful consideration, we have concluded that such signs using flashing, intermittent or moving lights to display animated or scrolling advertising raise significant highway safety questions because of their potential to be distracting to motorists."

If you are considering a single electronic billboard or a network of billboards, you should first check with your state's current general assembly legislature on electronic signs.

Webpavement has the technology and know-how to help you with your electronic billboard initiatives. We believe up-front due diligence and capital expenditures are worth your effort because the bureaucracy in obtaining the proper permits limit the amount of competition for electronic billboard advertising products.

Monday, April 04, 2005

Know Your Shoppers for Retail Digital Signage

The multimedia displayed on digital signage should match your consumer target. We read an article which categorized shoppers (see graph). The study from research firm Adjoined Consulting drew from interviews with over 1000 shoppers.

There are 4 kinds of shoppers:
  1. Thrifties tend to be 18 to 27 with income of less than $60,000
  2. Allures tend to be female with income of more than $100,000
  3. Speedsters tend to be older, middle-income males
  4. Elites are baby-boomer males with incomes of more than $100,000

Some other information from the study:

  • More than 97% still shop in bricks-and-mortar stores
  • Newman Marcus is the favorite department store
  • is the #1 online store and Wal-Mart is the #1 mass merchant
  • About 32% of shoppers rely on word-of-mouth (others can be influenced by digital signage products and static POP)
  • The mall is the consumer's favorite place to shop

Further Proof of Large Format TV Commoditization

Excerpts from Article that explains the asian domination of manufacturing and the methods Dell and Hewlett Packard are taking to take advantage of a projected high-volume flat panel tv business. As you all know - lower prices translate into continued adoption of digital signage.

The surge in investment and proliferation of suppliers have driven panel prices down to levels unthinkable even two or three years ago. That has opened the door to a set of competitors the Asians never expected to face: Dell Inc. (NasdaqNM: DELL), Hewlett-Packard Co., (NYSE: HPQ) and others in North America. They are making a concerted push in flat TVs, sourcing the panels from Asia and using the same global supply-chain wizardry they have employed so effectively in PCs, printers, and other products.

The return of American TV brands sets the stage for an epic battle between the forces of commoditization and manufacturing innovation. In the first camp, Dell and HP are already two of the world's biggest buyers of flat-panel monitors, semiconductors, and other parts for PCs, so they have great leverage over the same Asian suppliers when it comes to sourcing thin-screen televisions.

Monday, March 28, 2005

Cinema Digital Signage Advertising

This post is in response to a previous comment on a blog posting asking about CPM rates for digital signage in cinema.

We don't have CPM pricing information, but have some information on the market sizing and trends.

See the Arbitron study here.

See the Adspace paid research report here (this is a pdf).

Friday, March 25, 2005

Out-Of-Home Advertising Exceeds Newspaper, Radio, Yellow Pages Ad Growth

OUTDOOR AD SPENDING TOTALED $5.8 billion in 2004 according to OAAA. Read the release.

Based on the OAAA's final estimates, outdoor outpaced the growth of three other major media during 2004: newspapers (+4.5 percent), local radio (+4.0%) and Yellow Pages (+1.0 percent). Most of the top 10 outdoor ad categories showed healthy gains during the year, especially financial (+37.5 percent) and "media & advertising" (+31.9 percent).

Digital signage is generally regarded as out of home place based media fitting into "outdoor ad spending". We doubt the OAAA numbers include digital signage - with the exception of some electronic billboards. With that said, we're confident that digital signage outside of the home will inevitably have a positive effect on outdoor ad spending.

Thursday, March 24, 2005

Strategy Research Institute - Retail Advertising Quick Takes

The Strategy Institute is a research-based organization which monitors and communicates changes and trends in business and business strategy.

The Strategy Institute is holding it's second digital signage advertising conference April 26TH & April 27TH, 2005 • new york city, ny.

Quick Take (src: SRI):

Business Opportunities and Advertising Techniques to Capitalize on America’s Fastest-Growing Ad Medium

Digital Signage is Transforming the Way You Do Business!

-- Receives 10 times the eye contact of static signage
-- Boosts sales of new products advertised on in-store digital signage by 30% to 300%
-- Increases revenue by more than 30% for profiled products
-- Reduces customers’ perceived wait times by 15% or more
-- Saves advertising dollars (CPM of only $2 to $6)

Check this blog frequently as Webpavement will recap any significant market forecasts and other data as a result of this conference.

Thursday, March 17, 2005

Clarity Visual Systems Acquires CoolSign

Holy Cow! A display manufacturer acquired a digital signage network provider. Very Smart move Paul Gulick (CEO Clarity) - a man who understands the commoditization of displays and the desire to capitalize on digital signage recurring services revenue and intangibles associated in the digital signage business...

Other display manufacturers should take notice. Clarity lacks bureaucracy and is able to make smart strategic decisions.

Read the press release. We invite you to read our understanding of Adspace's history below. We report and you decide.

by: Webpavement - Digital Signage Technology Solutions

Adspace Networks History (important note: Adspace is a competitor of Webpavement):

Adspace Networks was founded around the same time as Webpavement - the late 1990's. In the beginning, Adspace was a technology provider with digital signage software. Adspace had a strong market share in casinos as they were based in Las Vegas.

As a result of the 2001 CAPV report on Narrowcasting in Public Spaces, Adspace felt the need to respond to the first report on digital signage. The report indicated that the top growth areas for digital signage would be (1) Theatres (2) Malls/Retail and (3) Convenience Stores.
A "build it and they will come" mentality prompted Adspace to move first in building out a network.

Adspace revised their business plan and went after venture capital funding to build networks in Theatres, Malls and C-Stores. The thinking was that recurring revenue from advertising would pay for all of the operating expense and hardware replacement cycles associated with operating a digital media network.
CoolSign is not profitable on a stand-alone basis, said Gulick, but he expects it will run profitably this year, adding to Clarity's profits.

Adspace business plan included the restructuring of the business in two divisions:
(1) Adspace - advertisement sales arm

(2) CoolSign - software and the 3 digital signage networks

Adspace Venture Capital Funding Timeline:
(1) August 2001 - Doll Capital Mgmt, Paul Alan small investment $14MIL (provided with the expectation to be cash flow positive by Q3 2002)

(2) 4Q 2001 - Doll Capital Mgmt $2.5MIL

(3) 3Q 2003 - Doll Capital Mgmt $3.214MIL

Clarity acquired the CoolSign division. We suspect the Adspace arm is the area of venture capital debt. One would think - however - that the VC's would not allow this to happen. How are the VC's getting paid for their investments (we don't know)? Unlike Adspace, Webpavement has been focused on technology from day 1 - the portion of the business Clarity acquired.

Note: Adspace and Clarity are private companies. This blog should be ingested with caution as private companies are not required to disclose financial/strategic information. Comments are welcome.

Wednesday, March 16, 2005

Christie Sprinkler Mishap @ NSCA 2005

During the NSCA show, a sprinkler head broke directly above the Christie booth. The alarm system started beeping and the lights were flashing across the show floor. This happened in the brand new Orange County Convention Center expansion.

Rather than exiting the convention center, hundreds of voyeuristic exhibitors and attendees flocked to see what happened rather than exiting the convention center. Yes - we are guilty too. Christie did get a lot of branding as a result of the sprinkler shower.

Here is a video for those interested:
Video Clip (6.35MB WMV)

If Christie employees are reading this - it wasn't Barco that ignited the sprinkler system above your booth. Joking aside - we believe NSCA cleaned everything up and provided an open bar for Christie's booth the next couple of days. Yes - alcohol brings in booth traffic.

Not sure if NSCA or the convention center provided any financial compensation. We're interested to hear if there's more to the story. Post a comment if you have any info..

Tuesday, March 15, 2005

NSCA 2005 Attendance Results - Digital Signage Pavilion

How was this year's digital signage pavilion (Orlando) compared to last years pavilion (Vegas)? The foot traffic seemed a little lighter than last year. We'll have to rely on the NSCA organization for attendee traffic results.

In our opinion, the show attendence results will come in lower than last year. We believe audio visual integrators simply prefer Las Vegas over Orlando (Flashy Hotels & Gambling vs Mickey Mouse).

We met many wonderful and talented integrators and even end customers. We seek systems contractors that have skillsets in A/V and IT. It's a combination required for what we sell >> digital signage >> products and services.

We must say - however - that we received many new opportunities as a result of the show that will keep us very busy. We look forward to working with all of our new friends.

Monday, March 14, 2005

Webpavement Blog Readers

Thanks to all of you that read our digital signage Blog on a regular basis.

According to a study, Blog readers might still be small in number, but they are among the most influential groups in the United States, according to a study by blog ad network, released Friday. The report, issued by founder Henry Copeland, concluded that most blog readers were "involved, upscale, intelligent, individuals who also read Atlantic Monthly, The Economist, The New Yorker, National Geographic, The Nation, and"

Thursday, February 24, 2005

Mitsubishi Sells Joint Venture with NEC

LCD manufacturer NEC-Mitsubishi will become a wholly owned subsidiary of NEC according to their press release.

The joint venture between NEC-Mitsubishi Electronics Display and NEC-Mitsubishi Electric Visual Systems Corporation were set up in January 2000. They will become a 100 per cent owned subsidiary of NEC Corporation on March 31 2005.

NEC will be eased of the pressure of selling only plasma displays. In the past, sales and marketing personnel of NEC have been defending plasma for public displays knowing that LCD is better for digital signage applications. This PDF speaks for itself of their previous problems with selling plasma while competing with their joint venture NEC-Mitsubishi.

“We are very proud of our accomplishments as NEC-Mitsubishi Electronics Display, and we are excited to be able to further leverage the strengths of NEC Corporation as we move forward,” said President and COO T.J. Trojan. “We firmly believe that the new ownership structure will provide many new opportunities for future growth through the access of new products and services and the simplification of our go-to-market strategies.”

Monday, February 21, 2005

Outdoor Electronic Billboard - Freedom of Speech

A Bay City (Detroit Michigan area) real-estate agency owner has been lighting up the entrance to Bay City since September with a vibrant electronic messaging sign on Euclid Avenue.

Norm Stevens was recently ticketed by the city on the way he is using the sign. The city cited Stevens only for displaying images of off-site advertisers. The city also said public service announcements also would conflict with the city ordinance. The city claimed the advertising must be for the business on the premises only and that he has an illegal billboard.

Although the permit is only $100, Stevens believes the citation is a violation of his First Amendment right of free speech. Stevens erected the sign, part of a $75,000 electronic system, to advertise his real-estate business, display public service announcements and for advertising other businesses.

Stevens said selling advertising to others helps pay for the system. He sent a message to city regulators that he's willing to fight on grounds of freedom of speech. Stevens has plans to install a network of outdoor digital signage across the city.

This is a case Webpavement will be following - and reporting to you - because it will serve as a great case for digital signage as it relates to the first amendment >> freedom of speech.

Read the press release.

Tuesday, February 15, 2005

AMX Acquired for $315 Million

AMX (NASDAQ: AMXC) is a leading control system product provider. Their products are used in a number of A/V applications for controlling most manufacturer display and other video products. AMX products are used for device control in some digital signage applications. Their primary competitor is a private company called Extron.

Read the press release.

2005 is looking good!

Friday, February 11, 2005

US Audio Visual Market $19 Billion - Digital Signage Fuels Growth

According to the International Communications Industries Association's 2005 Market Forecast Survey -- Residential, Retail and Digital Signage will be the Top Growth Markets.

Digital Signage extract from press release:

Among the most positive trends respondents indicated was the increased use of digital signage, particularly in the retail sector, for delivering a message, selling products or simply providing information. "The market for large information displays is growing at a tremendous rate, as increased competition leads to lower prices, and demand increases from businesses and universities," said Bob O'Donnell, Research VP of Clients, Mobility and Display Technology at market research firm IDC.

Saturday, February 05, 2005

Jacksonville Int'l Airport prepares Digital Signage

Jacksonville is host to Super Bowl XXXIX. Many preparations were made city-wide to get ready for the hundreds of thousands that will be visiting this fabulous city.

Over at the airport, Webpavement has been busy working on-site with the Jacksonville Airport Authority to make sure the baggage claim plasmas, NEC matrix video wall and gate displays are ready for the influx of visitors. All displays are Webpavement enabled.

Advertising and sponsorship interest has been very high for video advertising for some time - now it's showtime! Run the ads according to media buy terms and prove the ads were played. These tasks will be handled with Jacksonville Airport's on location Sign Server.

Since Philadelphia knocked out our beloved Atlanta Falcons, we hope to see them succeed with a ring. However, we wouldn't advise betting against the New England Patriots who are attempting to build a dynasty with their 3rd Super Bowl title in the last 4 years.

Wednesday, February 02, 2005

Digital Signage - Conservative Alternative Advertising?

Foreheads, skulls, arms, chests and hair etc.. Body parts auctioned off on eBay as human ad placements is becoming commonplace. Some businesses are being started solely for this purpose.

There is a lot of buzz surrounding alternative advertising (guerilla, stealth, viral, human) advertising that appears to be effective.

The most recognized example is the $30,000 contract a man from Nebraska received for wearing an advertisement on his forehead. He sold his forehead as ad space on ebay to Snore Stop. The winner was invited on Good Morning America and other news outlets. I suppose this is his 15 minutes of fame. I snore - perhaps I should buy a bottle.

A woman just sold her pregnant belly on ebay to golden palace casino for $4000. From the look of her stomach, it doesn't look like she has long until she gives birth.

Just a few days ago, Detroit Pistons guard Richard Hamilton wore the pattern of Goodyear's Assurance TripleTred tire pattern as a hairstyle during the game against the Knicks in Detroit.

It is obvious that this type of advertising creates Buzz. Do a search on forehead in ebay today and you will find a long list of copy cats - or perhaps smart people that are taking advantage of the buzz.

Digital Signage is conservative in comparison to the human advertisement campaigns. The objective - however - is the same. To promote, brand and sell product.

What we found interesting is the ebay factor. We have a number of digital signage network customers that need help selling advertisements.

Perhaps ebay is a viable outlet for brokering digital signage ad space.

Thursday, January 27, 2005

Digital Signage Classes in Education Institute

The New England Institute of Art in Brookline has relaunched its Multimedia & Web Design program and given it a fresh new name: Interactive Media Design. New courses have been added to include emerging technologies such as digital signage and DVD authoring, as well as Flash classes.

This is great news for the Digital Signage industry believers.

Read the article.

Monday, January 24, 2005

New InfoTrends/Cap Ventures Study - Digital Signage Forecast

A follow up report to Cap Venture's 2002 "Narrowcasting in Public Spaces" is now available. The 2002 report was primarily focused on retail applications.

The new report is named "The North American Commercial Digital Display Market". The new study is more broadly focused on commercial displays applications - aka narrowcasting.

InfoTrends/CAP Ventures expects the narrowcasting market to grow at a CAGR of over 20 percent, rising from $452 million to $1.3 billion by 2009. According to the analysts' market sizing and forecast, the largest single revenue component for this industry is -- and will continue to be -- external advertising revenues, which are expected to grow from $161 million in 2004 to $857 million in 2009, a 40 percent CAGR.

Key findings in the new study are:

  • Sales of hardware, software, installation and integration services, and support for all commercial display applications totaled nearly $1.7 billion in 2004.
  • For networked display systems in retail and public spaces, network operation / management services and advertising revenues generated an additional $413 million.
    This industry is expected to demonstrate a CAGR in excess of 25% over the next five years.
  • The list of industry vendors continues to change as companies leave and enter the industry, but is increasingly becoming segmented into a few leaders and a larger number of companies still working to create traction and critical mass. Webpavement was included in the initial 2002 and most recent study.
  • Over the next five years, cost-effective LCDs will be the most popular technology for digital signage applications because of their longevity, reliability, low power consumption, and attractive price point.

The study is available here. Price $14,995 US Dollars.

Monday, January 10, 2005

Digital Signage Advertising Pricing

Potential digital signage network operators frequently query Webpavement on how to price ad space on their digital signage network. Our retort usually varies based on the application and the network operator's business plan.

Traditional Out-of-Home advertising products (i.e. outdoor billboards, airport posters) use the CPM method. CPM is basically the cost per thousand impressions. Television advertising also uses the CPM methodology. The number of travelers for an airport and the number of viewers for a CATV show has the research to show the thousands of likely eyeballs.

CPM measurement assumes that each passer-by views a billboard within sight. Or a television set tuned to a particular station -- these commercials assume captive humans are watching them and not getting a snack from the fridge. However, as of January 2005 - Digital Signage can't measure eyeballs either.

Breaking away from the CPM pricing methods is Internet advertising. With Internet advertising such as Google's adwords or Yahoo's overture services - impressions are counted - but they come free. Internet advertising charges advertisers based on cost-per-click (aka. clickthru). This model is apparantly effective based on the success of Yahoo and Google's revenues.

Webpavement remembers exhibiting at @adtech - an internet advertising conference - in year 2000. Numerous pricing models were debated on the show floor and since that conference - the Internet advertising industry seems to be maturing and standardizing on click-thru's. Internet advertising pricing model debates started in the late 1990's and are all pretty standard now. We would venture to say that it took a good 5 years til the right advertising model emerged.

What will the Digital Signage advertising pricing model become?

First we must say that digital signage must be assessed differently than the above advertising products. A digital sign has more advertising inventory than most of the above advertising businesses. Further, ads can be placed nearly instantaneously. Many other factors differentiate a digital sign from other advertising offerings.

Advertising pricing for digital signage is a good question that can be debated. Webpavement is leaning on a pricing model that employs dynamic rate cards based on supply and demand. Our software package for digital signage supports this pricing model. Policies and procedures are recommended by Webpavement where you utilize dynamic rate cards based on your supply. Further, we assist our customers in building a model that maximizes their initial return on investment while leaving their network open for dynamic pricing.

More details to come on this topic.

Blog Posts - Now Accepting Comments

Webpavement has enabled the ability for you to comment on any digital signage blog post. The Webpavement digital signage blog is now open access.

Instructions for responding to a blog post:
  1. Click the Comment link below the post.
  2. Click 'Post a Comment'
  3. Type in your comment then click "Publish Your Comment"

We are always open to blogging about any issue relevant to digital signage. Send an email to for suggestions.

Tuesday, January 04, 2005

Webpavement wishes you a Happy New Year 2005

Webpavement employees were flipping through the TV channels New Years Eve to catch a glimpse of Times Square's newest Electronic Billboard - powered by Webpavement.

We saw it numerous times and it felt good to see our products in action! CNN had the best viewing angles to the GMC sign.

Finally, we'd like to welcome new customers Pfizer St. Louis, Kellog Co. and Robins Air Force Base. Thank you for choosing Webpavement. More on these new customers is in our news section.