Digital Signage

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2009-04-14T19:23:00.000-07:00

twitter.com/ericunold

Uhum Uhum

2008-09-09T18:08:00.000-07:00

just clearing my throat for a second for some observations

Blogging Hiatus

2006-12-12T08:38:00.000-08:00

Webpavement will no longer actively post in this blog. An occasional post may show up here and there, but we don't plan to post very frequently.

We will continue doing what we do best, developing digital signage software.

Reasoning:
When we started this blog a few years ago, there were no resources for digital signage. Now there are a large number of websites for getting your digital signage fix.

Contact us if you need some help finding good digital signage blogs or forums.

Google Newspaper Ad System

2006-11-06T08:16:00.000-08:00

Google is testing a newspaper advertising sales system.

Advertisers can pick specific newspapers and specific sections for their ads. They would place bids on ad size, sections and days a newspaper is offering. The newspapers can then view the bids from Google and make selections. The newspapers can choose to accept as many or as few bids as they like at any time.

Sounds like a system that's worth a look for digital signage networks.

Fantasy Football Dynamic Signage

2006-09-13T11:47:00.000-07:00

The NFL season has begun here in the United States. With the start of the football season, many fans of the game participate in fantasy football leagues. Fantasy football can be very competitive. Obtaining real-time information on games in progress is in high demand. So much in fact that ESPN offers a service targeted at this popular and growing market.

Today we learned that Yahoo and Intel will make it possible to overlay customized fantasy football data on in-home TV sets. Is there opportunity for fantasy football statistics on out-of-home TV sets? We think YES.

Source: Yahoo and Intel to pipe sports data to TV screens

EA to embed dynamic ads in video games

2006-09-05T06:38:00.000-07:00

Interesting read on the wilingness for advertisers to embrace alternative media formats to deliver a relevant message to receptive viewers. Read it

Pay Phone Digital Signage

2006-07-28T11:32:00.000-07:00

As many of you know, pay phone usage in the United States is suffering. With cellphone ownership increasing, the demand for pay phones has decreased to the point where operators are removing pay phones that aren't making money.

"If a pay phone isn't covering its costs, we take it out," said Jim Smith, a spokesman for Verizon, which operates more pay phones in New York than any other company. "Toward the late '90s, the wireless phenomenon really got some momentum. That really put the squeeze on the pay phones."

This begs the question:

Do pay phone locations have the infrastructure needed for digital signage?

Undoubtedly, some pay phone locations that are being removed offer great locations for digital signage. We'd like to hear your thoughts.

Arbitron Tool For Profiling Outdoor Commuters

2006-07-12T08:02:00.000-07:00

Found a cool tool to show advertisers the connection between commuting and Out-of-Home advertising.

For most markets, you can obtain:

Average commute time
Travel start time
Transportation method used
Comparison with U.S. national averages

Check out the Arbitron Metro Commuter Profiler.

USA Today's take on Electronic Billboards

2006-06-22T11:37:00.000-07:00

Wanted to point you to a recent USA Today article headlined Outdoor ads make high-tech comeback noting that outdoor is probably the oldest ad media.

The article discusses features such as interactivity through text messaging, website interaction with the billboards and the fact that new digital billboards can change daily, hourly or by the minute at little cost.

Outdoor LCD Panels

2006-06-12T13:17:00.000-07:00

At last week's Infocomm in Orlando, we saw a couple new outdoor LCD products. These new outdoor display products are lower cost than LED and range in size from 37" to 82".

The following products are compatible with Webpavement's digital signage media players.

Hy Tek Tuf Panel - 37", 42", 46"
Availibility: available now

Symbicom Icon One - 32", 40", 46", 52", 57", 92"
Availibility: available in Europe

Webpavement at Infocomm 2006

2006-06-01T11:01:00.000-07:00

Webpavement will be in Orlando next week for Infocomm. We will be exhibiting with our partners Philips Business Displays and Almo Pro A/V. Please stop by our booth #1158 to discuss digital signage networking. We'll be armed with all the equipment needed for full software demonstations - including our Sign Server web-based digital signage server.

Remember PointCast?

2006-05-27T06:51:00.000-07:00

Not too relevant for digital signage, but thought you would find this article interesting. Check out PC World Magazine's list of The 25 Worst Tech Products of All Time.

In 1996, there was a product called PointCast that was ranked 12th worst product. PointCast looked like a cluttered digital sign, but was used by individuals on their desktop computers. It was really cool.

The product was very popular and installed by thousands of users for streaming news, sports and other information. The product was supported by advertising revenue. PointCast's bandwidth requirements clogged corporate networks and was soon banned by many businesses. PointCast last broadcast was in 2000. I bet they would be in the digital sign software business today if they were still around.

If anyone has a screenshot of this product - let us know and we'll post it here.

Webpavement at DRE 2006

2006-05-15T07:23:00.000-07:00

Webpavement will be at the Chicago Digital Retailing Expo this week exhibiting with our partner Philips Business Displays. Please stop by our booth #1731 to discuss digital signage networking. We'll have an Internet connection for software demonstations.

Digital Signage Impacts Outdoor Ad Growth

2006-05-04T12:32:00.000-07:00

Outdoor advertising spending increased 7.7 percent in the first quarter of 2006 according to the Outdoor Advertising Association of America.

Digital Billboards (aka. digital signage) was noted to be a major contributor to this significant increase. The OAAA believes this is not merely a trend. Rather it's an expansion of outdoor's market size and potential because of technologies such as digital signage.

Notable Quotes from the Article (via: MediaPost):

But the industry itself is also experiencing a long-term expansion, as reflected in the year-on-year growth. "Brands are investing more heavily than we anticipated," Freitas explained: "I think we're starting to see an acceleration in ad dollars moving from other traditional media to out-of-home." Asked why this might be so, Freitas mused: "I think there continues to be uncertainty concerning the future vitality of other media formats, and there's a lot of interest in using out-of-home to reach consumers when they're 'on the go.'"
Beth Gray, of Foote, Cone & Belding, said she's seen an uptick in outdoor ad spending too--pointing to the advent of new technologies, including digital billboards, as a way to "cut through the clutter." "I believe it--especially because in some markets people are buying and creating premium outdoor ads, not just regular 30-sheets. You can just look in Times Square--people are really starting to get into LED displays, and it's driven by the desire to create something that's truly impactful."
Freitas echoed Gray's observation, noting that while the digital billboards "segment is still relatively small, the outdoor companies are being very aggressive." According to Freitas: "A lot of outdoor companies are telling us that even before a sign is built, it's sold out more than a year in advance." By allowing advertisers to display multiple advertising faces, he went on, the digital billboards can boost revenue substantially.

UK Digital Expo for Outdoor Media

2006-05-03T07:45:00.000-07:00

Websignage - our UK distributor - will be representing Webpavement digital signage products at Sign UK 9-11 May 2006, NEC Birmingham.

Qualified representatives will be on hand to answer questions and demonstrate digital signage software. Contact Websignage for free attendee registration.

Focus Media Portfolio Grows

2006-04-26T06:59:00.000-07:00

Focus Media today announced a 70 screen network of 5' x 5' LEDs. Focus Media's new LED network targets Shanghai's high pedestrian traffic counts.

See the release: Focus Media Adds Outdoor LED Network to Its Out-of-home Media Platform

Focus Media now boasts 70,000+ digital signs, 90,000+ plus static poster signs and an undetermined number of cellphone screens.

Over 1500 advertisers have purchased insertions on Focus Media's network.

Why don't we have a Focus Media comparable in the United States?

Bathroom Digital Advertising

2006-04-20T07:02:00.000-07:00

Check out the viewrinal video from the Freshcreation blog out of the Netherlands. It's another reason newspaper ad sales are declining :).

The media plaza building installed digital signs on the floors inside the bathroom stalls.

via Freshcreation.

CNN Money on Digital Billboards

2006-04-05T10:45:00.000-07:00

CNN Money senior writer Paul R. La Monica reports the rising interest in billboards - and more importanty - digital billboards.

Lamar and Clear Channel outdoor are highlighted in the article.

Here's an excerpt:

For one, billboards, unlike other "older" forms of media, have not faced the same pressure from the Internet, iPods, satellite radio, TiVo and other technology. When you're driving on a highway, the only way to not see a billboard is to not look out your windshield. Needless to say, that's not a good idea.

"Technology helps people avoid other advertisements, but we are the one unavoidable media. There is no mute button, no off switch. You can't change the channel. We're there," said Paul Meyer, the global president of Clear Channel outdoor.

In fact, technology is actually something that could help Clear Channel Outdoor and Lamar in the near future. Both companies are testing digital billboards, LCD screens that can change advertisements instantaneously through Internet connections.

That's a far cry from the old vinyl billboards that only get changed every couple of weeks (or sometime months). "For our industry, technology is no longer a threat, it's just an ally. Digital displays eliminate the biggest disadvantage to outdoor right now, which is that we are a relatively slower acting cumbersome media," Meyer said. "With digital signage, there will be no limitations on how often and when advertisers
change their ads."
Full article here.

Webpavement at Globalshop 2006

2006-03-22T06:40:00.000-08:00

Webpavement will be at Globalshop Orlando March 26-28, 2006. We will be showcasing our full suite of digital signage solutions in conjunction with partner Philips Business Displays within the Digital Store Pavilion. Please come visit us in the Philips booth # 5436.

Outdoor Ad Spending Soars in US

2006-03-20T11:51:00.000-08:00

The Outdoor Advertising Association of America reported spending rose 8 percent during 2005, making it one of the fastest growing sectors of media last year.

According to the OAAA, consumers are spending more time away from home where they are being exposed to increasingly more outdoor messages instead of in-home media.

Digital signage has likely had an impact on this growth.

Results were especially strong in some fast-growing categories:
-- communications +31.8 percent
-- insurance and real estate +16.4 percent
-- retail +11.7 percent

UF Study on In-Store Environments

2006-03-08T09:10:00.000-08:00

A new study poses questions for retailers considering digital signage. Many relevant benefits and disadvantages were identified. We believe the disadvantages can be mitigated with a proper digital signage software system and the retailer's understanding of their customers. Here are some highlights.

A new University of Florida study finds that buyers want stores to be turn-ons when they browse for fun but prefer sedate environments when seeking mundane merchandise for everyday life.

In the brick-and-mortar world, retail stores may need to resort to satisfying their customers’ competing demands by tailoring design schemes by department, Weitz said. In Circuit City or Best Buy, for example, the section of the store carrying cables and connectors, where shoppers are not likely to want to spend much time, might be quite starkly decorated, while the home entertainment department could be more elaborate, he said.

Or stores could change digital signage to suit customers’ needs at different times of the day, using full motion videos in the morning if early shoppers like to be entertained and simpler messages in the evening if the priority is on saving time, Weitz said.

Unfortunately, many retailers hire interior decorators who are more interested in winning architectural awards than making stores useful to consumers, Weitz said. “I think these people lose sight of the fact that the reason for designing a store is to sell more stuff,” he said. “Sometimes making it more exciting and beautiful doesn’t help.”

Michael Levy, a marketing professor at Babson College, said Weitz’s research has significant implications for retail managers. “Past research has lumped all theories about how store environments impact the shopping experience into one bucket,” he said. “Professor Weitz’s research prescribes specific actions for retailers depending on the type of shopping trip they expect their customers to take or what types of products they are selling.”
Read the article here: UF study: Jazzy store environments not always best for consumers.

Digital Signage Photos

2006-02-21T10:59:00.000-08:00

A digital signage photo gallery was recently added to our website. All of the digital sign installations in the gallery are operated using Webpavement products.

eBay to sell Media?

2006-02-20T09:18:00.000-08:00

Some of the nation's biggest advertisers got a pitch from a surprise media buying "solutions provider"--online auction service eBay.

OnlineMediaDaily reports that eBay was invited by the Association of National Advertisers Television Advertising Committee to present ideas for building an electronic trading system for buying and selling media.

As you know, there have been some strange auctions at eBay in the past for advertising. Now - for eBay to seriously consider being a media buying solutions provider - this is serious business.

This may be good news for our smaller digital signage network owners. If eBay turns out to be a good platform for selling digital signage advertising, maybe we'll see more smaller regional networks implemented.

Google is dabbling in outdoor as well. An analyst at Jupiter research suggests that Google's Next Frontier is Outdoor. We have also hinted that Google may enter into digital signage.

We'll keep a watch on eBay and Google and it's effect on digital signage -- then post findings on this blog.

Here's hoping Congress keeps the pipes open

2006-02-07T07:17:00.000-08:00

We ran into a very interesting article written by Andrew Kantor, USA TODAY on the push by high speed internet service providers to make money from the content that is carried across their pipes. It seems the large ISP's are not happy with the revenues generated by providing internet service alone; they also want to charge content providers for transporting that content to customers that already pay a monthly fee to them for internet service. Sounds crazy, huh?

This issue is one that is being introduced to congress by lobbyists for the large ISP's. If congress were to side with the large ISP's on this issue, there would be far reaching consequences for both consumers and businesses. The digital signage industry would also be a victim.

Read the article.

UK Digital Screen Count

2006-02-06T08:19:00.000-08:00

According to the January 2006 release of a Samsung and POPAI digital survey, there are close to 100,000 digital signs installed in the United Kingdom. The purpose of the survey is to establish the number of digital screens in stores across the UK.

UK's population is about 60 million resulting in a ratio of 1 screen for every 600 people.

Read the study here: In-store screens increase by 63 percent (PDF File)

We wonder how many screens are in the United States.. If you know of any studies, please post a comment.

Linux Vulnerabilities Spur Enterprise Warning

2006-01-31T06:43:00.000-08:00

When evaluating digital signage software, many will ask Webpavement about security. While this question is very broad, the conversation usually includes a Windows vs Linux analysis. Linux is perceived to be more secure than Windows - mostly because it is Open Source software. However, the jury isn't out on this subject.

InformationWeek's Johanna Ambrosio published an article that offers valuable data concerning this argument.

Here are some of the highlights as excerpted from the article:

Recently, the U.S. Computer Emergency Readiness Team, or CERT, reported that during 2005, Linux and Unix combined had 2,328 vulnerabilities, compared with 812 vulnerabilities for Microsoft Windows.

A separate query of the National Vulnerability Database (NVD)--maintained by the National Institute of Standards and Technology--yielded similar results: During 2005, there were 119 vulnerabilities reported in the core Linux kernel--the one used by all the various Linux distributions, says Peter Mell, the database's main administrator. This compares with 61 published vulnerabilities for Windows XP, according to the NVD. Moreover, the trend appears to be going upward. The 119 vulnerabilities found in Linux during 2005 compares with 47 in 2004, 16 in 2003, and 11 in 2002, Mell says.

As the popularity of Linux increases, some question whether the open-source development model will continue to serve Linux well from a security perspective. "To a large extent, this could be a failure with open source," says Ira Winkler, an independent consultant, president of the Internet Security Advisors Group, and author of Spies Among Us. The primary issue he sees is a lack of consistency in regression testing and other quality-control issues. Because many people may be contributing code in the open-source model, there's no way of being sure exactly how that code has been bulletproofed, or even whether any best-practice testing methodologies have been used across and between contributors.

Arbitron Findings on Digital Signage

2006-01-27T10:00:00.000-08:00

Arbitron published a report this week called 'Consumer Interest and Acceptance of Video Displays in Retail Environments'. The findings of the report back the many benefits digital signage industry pundits have been talking about for years.

A good summary was reported on the AKA website.

Arbitron Finds Viewers "Extremely Receptive" To In-Store Video

While the findings of the report are all interesting, we found this statement to personally reflect the desires of many of the males here at Webpavement.

The report also found that almost half of male shoppers (46 percent) are interested in getting sports news and score updates from video screens while shopping.

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It was funny. After reading the positive findings by Arbitron, the next news item that we read from AdAge quoted the President of WPP's Global Retail Practice:

Though in-store marketing spending is estimated at more than $17 billion a year, measurement of the medium has been elusive and criticism of its effectiveness fierce. “Brands and marketers are desperate to reach shoppers at the shelf,” said Gwen Morrison, president, The Store in Chicago, a part of WPP’s Global Retail Practice. “Many of these systems have gravitated to these large screens and it’s always been hard for shoppers to look up. It’s been an ergonomic issue almost.”

Ms. Morrison said store employees often turn off volume on in-store networks and shoppers have “zoned out” tuning out the noise from ads. ShelfAds ”might catch your attention and create more of a speed bump in the aisle since the sound is not going on constantly,” she said.
Full story here.

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We concur with her point on the ergonomic issue of digital signage. This can be resolved by using appropriate display sizes and installing them in the proper sight lines. However, we believe consumers are drawn to digital signage as noted by Arbitron. Especially the males that need external information (such as sports, stocks and news) when in a retail store.

Published by Webpavement digital signage.

Gartner Group on Retail Digital Signage

2006-01-19T07:45:00.000-08:00

Analyst firms such as Forrester Research, CAPV / InfoTrends, Platt Retail Institute and others recognize a strong market for digital signage. The Gartner Group is now part of the analyst community covering digital signage.

The Gartner Group says up to 28 per cent of companies are deploying, or will deploy digital signage by the end of the year, and another 33 per cent expect to do so after 2006.

Read the article from IT Week's UK Magazine here: Gartner discusses its predictions for retailers' IT use

See this page for Webpavement's International digital signage contact information.

Digital Signage Report Card

2006-01-17T13:04:00.000-08:00

Lyle Bunn is a well-known digital signage industry veteran. He released a report card on the state of the industry for 2005. Pretty interesting read.

Read it here (PDF File): 2005 Report Card for Digital Signage was a B+ and the 2006 outlook is very strong

Focus Media to Merge with Target Media

2006-01-07T07:26:00.000-08:00

Focus Media solidified its position as the market leader in China's out-of-home audiovisual advertising market using flat-panel displays. They announced a definitive share purchase agreement with Target Media Holdings.

After the the merger, Focus Media will operate a nationwide commercial location advertising network of over 60,000 displays in more than 30,000 commercial locations in about 75 cities in China.

References:
Press Release
Focus Media Website
Target Media Website

Digital Signage in Target Stores

2006-01-04T07:53:00.000-08:00

Target has rolled out a digital signage network in all 1400 stores. The network is called Channel Red and is reportedly in the 1) electronics 2) music & 3) movies department.

Target is the first top ten retailer in the USA to own it's private digital signage network. Could this be a trend? Will retailers also become media companies?

We'll soon find out.

Note: Bill Collins and Laura Davis (both digital signage industry veterans) have more details on this network. Contact us if you are not on their newsletter list and we'll see if we can help you out.

Google Digital Signage

2005-12-21T09:34:00.000-08:00

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?

Viacom Outdoor becomes CBS Outdoor

2005-12-15T07:49:00.000-08:00

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.

Nielsen Measures Opportunity To See A Digital Sign

2005-12-12T08:34:00.000-08:00

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.

Cramer Bullish on Roadside Digital Billboards

2005-12-07T07:04:00.000-08:00

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.

King Kong takes over Times Square

2005-12-06T12:59:00.000-08:00

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.

New York City Outdoor Pricing

2005-11-28T08:04:00.000-08:00

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.

Digital Signage Hot New Madison Avenue Trend

2005-11-18T13:03:00.000-08:00

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.

GVExpo Digital Signage Pavilion

2005-11-09T07:39:00.000-08:00

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.

Future Digital Signage Business Models

2005-10-26T14:05:00.000-07:00

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

New Methods for Measuring Outdoor Advertising

2005-10-14T08:28:00.000-07:00

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.

Digital Signage Bandwidth II

2005-10-06T10:17:00.000-07:00

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.

Retail TV Checkout Channel

2005-10-04T10:03:00.000-07:00

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.

New York City Outdoor Contract

2005-09-22T08:00:00.000-07:00

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..

Marketers Beef Up Ad Spending Inside Stores

2005-09-21T09:21:00.000-07:00

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. www.btvplus.com

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.

Billboard Inventory Selling Fast

2005-09-16T11:12:00.000-07:00

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.

Interactive Campaigns in Times Square

2005-09-06T06:46:00.000-07:00

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.

Lexus
The program includes a Web site, www.TheNewIS.com, 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

Nike
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.

NEC Bluefire works with Scala or Webpavement

2005-08-23T08:48:00.000-07:00

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.
-------------------------------------------------------
MEMO
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.

Industry Analysts Bullish on Digital Signs

2005-08-11T08:16:00.000-07:00

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.

Clear Channel Outdoor IPO

2005-08-09T10:48:00.000-07:00

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.

Digital Signage Acquisitions

2005-07-29T06:34:00.000-07:00

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.

WPP Consolidates Mediaedge and MindShare Into New Outdoor Media Giant

2005-07-19T11:02:00.000-07:00

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.

Focus Media Initial Public Offering

2005-07-13T07:23:00.000-07:00

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.

Webpavement Meets the Needs in Education

2005-07-05T07:01:00.000-07:00

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.

Supermarket Advertising Works - WPP and Mediaedge Study

2005-06-28T07:33:00.000-07:00

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.

Digital Signage Benefits from Mass Media and Technology

2005-06-23T12:02:00.000-07:00

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.

Digital Signage Industry Report List

2005-06-22T13:02:00.000-07:00

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

Digital Signage Patent

2005-06-21T13:39:00.000-07:00

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
20050086695
Kind Code
A1
Keele, Robert ; et al.
April 21, 2005
Digital media presentation system
Abstract
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.

Frost and Sullivan Digital Signage Report

2005-06-15T07:08:00.000-07:00

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

2005-06-15T06:52:00.000-07:00

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.

US Advertising 1st Quarter Results

2005-06-02T07:02:00.000-07:00

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!

LED Gaining Traction in Digital Signage

2005-05-27T08:46:00.000-07:00

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.

Infocomm Expected to Draw 25000 Attendees

2005-05-20T12:05:00.000-07:00

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

2005-05-20T09:00:00.000-07:00

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.

Chart of Times Square Electronic Billboard Pricing

2005-05-10T06:17:00.000-07:00

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.

Times Square advertising business annual estimate

2005-05-09T07:07:00.000-07:00

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.

Cinemas Should Use Digital Signage Advertising

2005-05-05T06:45:00.000-07:00

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.

Can Consumers Turn Your Digital Signs Off

2005-04-29T09:46:00.000-07:00

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.

Digital Signage Bandwidth

2005-04-25T07:55:00.000-07:00

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.

Get Your Groove On LED

2005-04-15T10:21:00.000-07:00

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.

Digital Signage to Benefit the Advertising Chaos Scenario

2005-04-14T09:08:00.000-07:00

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

2005-04-14T08:23:00.000-07:00

Updated:

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.

Know Your Shoppers for Retail Digital Signage

2005-04-04T08:00:00.000-07:00

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:

Thrifties tend to be 18 to 27 with income of less than $60,000
Allures tend to be female with income of more than $100,000
Speedsters tend to be older, middle-income males
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
Amazon.com 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

2005-04-04T07:23:00.000-07:00

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.

Cinema Digital Signage Advertising

2005-03-28T08:11:00.000-08:00

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).

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

2005-03-25T08:42:00.000-08:00

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.

Strategy Research Institute - Retail Advertising Quick Takes

2005-03-24T09:04:00.000-08:00

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!

DID YOU KNOW THAT DIGITAL SIGNAGE ADVERTISING…
-- 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.

Clarity Visual Systems Acquires CoolSign

2005-03-17T11:59:00.000-08:00

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.

Christie Sprinkler Mishap @ NSCA 2005

2005-03-16T10:48:00.000-08:00

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..

NSCA 2005 Attendance Results - Digital Signage Pavilion

2005-03-15T10:26:00.000-08:00

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.

Webpavement Blog Readers

2005-03-14T08:59:00.000-08:00

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 Blogads.com, released Friday. The report, issued by Blogads.com 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 WSJ.com."

Mitsubishi Sells Joint Venture with NEC

2005-02-24T06:53:00.000-08:00

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.”

Outdoor Electronic Billboard - Freedom of Speech

2005-02-21T07:04:00.000-08:00

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.

AMX Acquired for $315 Million

2005-02-15T07:29:00.000-08:00

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!

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

2005-02-11T13:03:00.000-08:00

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.

Jacksonville Int'l Airport prepares Digital Signage

2005-02-05T06:56:00.000-08:00

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.

Digital Signage - Conservative Alternative Advertising?

2005-02-02T13:48:00.000-08:00

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.

Digital Signage Classes in Education Institute

2005-01-27T13:44:00.000-08:00

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.

New InfoTrends/Cap Ventures Study - Digital Signage Forecast

2005-01-24T13:34:00.000-08:00

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.

Digital Signage Advertising Pricing

2005-01-10T11:04:00.000-08:00

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

2005-01-10T02:11:00.000-08:00

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:

Click the Comment link below the post.
Click 'Post a Comment'
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 blog@webpavement.com for suggestions.

Webpavement wishes you a Happy New Year 2005

2005-01-04T10:02:00.000-08:00

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.

Digital Signage Update Article on Clear Channel's 'Digital Street Network'

2004-12-22T06:23:00.000-08:00

An article written by Apogee Partners was email blasted to a large opt-in email base today by broadcast engineering. The article discussed lessons learned from the 1 year anniversary of the largest LED network installed in the world - 80 street level LED displays located at Manhattan subway entrances.

A correction must be pointed out.

A bullet point in the article discussed the need to “Ensure content integrity and security.”. They then went on - for some reason - to discuss a digital signage provider called ADSN that can provide these measures.

Webpavement wanted to point out that ADSN has nothing to do with Clear Channel's Digital Street Network. The network is completely secure and the security measures implemented should be credited to UDN, Webpavement and Verizon Wifi / WiFi-Plus.

UDN is the network operator.
Webpavement is the underlying digital signage software.
Verizon is the wifi broadband provider using WiFi-Plus equipment.

Digital Signage Market Forecasts

2004-12-17T08:33:00.000-08:00

Upstarts and other firms commonly ask Webpavement about the forecasted market size for Digital Signage when putting together their business plans. Here is the list that we have to date from various research firms. We will update this as new forecasts are published.

iSuppli:
$2.4 Billion by 2009
allocation: 50% Displays / 50% Software & Services

Shenkan & Assoc:
$4.1 Billion by 2007
allocation: 50% Displays / 50% Software & Services

CAP Ventures:
$2 Billion by 2006
allocation: 50% Displays / 50% Software & Services

Weinstock Media Analysis
$2.23 Billion by 2008
allocation: not supplied

note: allocations are estimated.

Webpavement can assist your organization with your efforts in capitalizing on these opportunities.

NYC - 600,000 Digital & Static Signage for 2012 Summer Games Already Booked

2004-12-07T11:43:00.000-08:00

New York City Locks In Space for Ads in Preparation for 2012 Summer Olympic Games. The bookings are part of an unprecedented marketing plan that includes roving squads of "brand enforcement agents" to prevent others from profiting from unauthorized ads tied to the Olympics.

The 6,000 signs include static billboards and digital signs at subway entrances, billboards, times square LED advertising signs and more.

The steps are intended to convince the International Olympic Committee and its corporate sponsors that New York, which has played up its reputation as the world's media capital in its bid to hold the 2012 Games, can adequately police its sprawling and unruly advertising landscape.

Outdoor Digital Signage Does Make Money!

Advertising on billboards and electronic signs in Midtown Manhattan is the most expensive in the world, marketing executives say. Monthly rates for outdoor displays in Times Square range from $30,000 to $250,000, and a single panel on the side of a telephone kiosk runs from $1,000 to $2,000.

New York's bid documents say that organizers expect "a record $822 million in local and domestic sponsorships" for the 2012 Summer Games, and they assure the committee that the city will use "all of its resources to protect the value of Olympic sponsors and the rights of Olympic marketing partners."

The New York Times article is located here (free registration required). Webpavement is the underlying technology driving a large portion of Manhattan's digital signage.

South Florida Job Opportunity - Comcast Spectacor

2004-11-24T07:08:00.000-08:00

If you live in the beautiful West Palm Beach Florida (south Florida) area, there is a job at the brand new convention center for managing the convention center digital signage network. Familiarity with Webpavement software is a plus.

http://comcast-spectacor.teamworkonline.com/teamwork/jobs/jobs.cfm?supcat=431&supcat_name=Information%20Technology

Moviegoers Say Pre-Movie Commercials May Keep Them From the Theater

2004-11-22T09:28:00.000-08:00

Last week on CNBC, we heard the results of a survey that show more than half of moviegoers (53%) surveyed say cinemas should stop this practice.

The public simply does not want to see advertisements prior to watching a movie after they paid $10 / head for entertainment.

It is clear that a compromise is needed for cinema advertising products. Cinemas will lose a lot of advertising revenue if they completely abandon movie screen advertising. Further, advertisers believe advertising on the screens prior to a movie is very effective. We queried a media buyer for Outback Steakhouse and she mentioned that movie screen advertising is always budgeted for their media buys. Asked if she (Outback) would transition their media buys to lobby advertising - she wasn't educated enough about digital signage in the lobbies to say yes or no.

On the flip side, cinemas must listen to their customers where the majority believe cinema ads should be eliminated.

Is digital signage a solution for the stakeholders - cinemas, advertisers and the consumer?

Yes. We believe cinemas should offer a number of advertising products at the theater to satisfy the needs of the 3 stakeholders. Among these advertising products, a proper mix of pre-movie advertising and digital signage lobby advertising.

Movie screen advertising should include advertising related to the movies. Upcoming movies and fresh, never seen before on T.V. advertising will sooth the movie goers perception of being sold after paying for entertainment. Movie screen advertisements should - in general - be different than advertisements viewed on the televisions at home.

Digital signage can be more liberal and open to local restaurants and product advertising not related to movies/entertainment. The question is - will advertisers embrace the concept of lobby advertising rather than movie screen advertising? We think so if the screen placement / lobby design are implemented correctly and advertisers are properly educated about this advertising product.

Contact Webpavement to begin a discussion on designing a proper media mix for cinema advertising.

"Store and Forward" -vs- "Store and Pull" for Digital Signage

2004-11-16T06:00:00.000-08:00

Many digital signage software providers (Webpavement competitors) will use the term 'store and forward' when describing their respective offerings. It's typically defined by competitors as such:

Competitive Solution Definition:
Store and forward means that all of the playlist files and schedules are assembled at the central location and delivered to the remote players.

Webpavement Solution Definition:
Store and Pull means that all of the playlist files and schedules are assembled at a central location using a web browser and the remote players retrieve (pull) the respective data and files.

Webpavement believes that our competitors statements are true, but are often a misleading statement to the purchasing authority and IT departments. What the store and forward really means is that the digital signage system will 'store and push'.

Store and forward (aka. push) systems are typically desktop grade software packages -- meaning the centralized system is installed on 1 operator's desktop and introduces a single point of failure. Not a data center enterprise grade solution by any means.

Further evidence that store and forward is the wrong approach is the fact that it poses a security threat. Ask the digital signage provider if special firewall ports will need to be opened in the store and forward model.

A system that is designed professionally will employ a store and player pull method that uses port 80 - a port that is already opened on all firewalls. It is a known fact that the more ports that are opened on a firewall - the greater the risk of a security breach.

The last thing you would want to occur on your digital signage network is a hacker posting obscene and inappropriate messages.

Webpavement's Sign Server uses the store and player pull approach. You will be more secure with Webpavement solutions and you will not need to ask your firewall administrator to open additional/special ports.

Times Square Revolution in Digital Signage Good News for Landlords

2004-11-11T08:44:00.000-08:00

Have a read on this very interesting article on the monthly fees collected by landlords renting space for digital signs on the sides of their buildings. Monthly checks are rolling into building landlords bank accounts from $40,000 to $250,000 (for times square).

Webpavement believes the times square success can be applied to other top DMA's in the United States and abroad.

Why? With (1) high office vacancies (2) high availability for sub-leasing opportunities and (3) the growth in newly constructed office buildings -- it's clear new revenue channels must be assessed for commercial real-estate developers and landlords. Some real estate analysts have indicated that commercial real-estate is in a bubble similar to Internet stocks in the mid to late 1990's.

An excerpt from the article that impressed us the most:

One Times Square in Manhattan has only one tenant, a Warner Bros. retail store filling the first three floors. The remaining 19 floors are vacant. It's not that Sherwood Outdoor--a partner in the famous building that drops the ball every New Year's Eve--can't fill the space. "Who needs pain-in-the-butt tenants," says Brian Turner, president of Sherwood, "when you've got the largest sign tower in the world?"

The landlords make more money by leasing the space on the outside of 1 Times Square for advertising, he says, than they would from the office space inside. The building's 26 signs bring in monthly rent checks ranging from $40,000 to $250,000.

Webpavement will assist you with your ideas applicable to this topic no matter your locale. Contact us to discuss your opportunities and building locations.

Hosting Client Call

2004-11-04T07:48:00.000-08:00

I just got off the phone with one of our hosted clients. She wanted to schedule a avi animation every day except for Monday for the next 3 months to play between the hours of 4pm and 3am. I walked her through the reservation process in a few minutes and she made a joke about how she's going to be on vacation the next month and she ended up scheduling for many more months in advance noting that she could cancel the reservation if she needed to. She raved about the ease of use and flexibility of the system and said she wouldn't have a problem getting it done next time. I said no problem, it was fun.