Digital Signage Acquisitions

Consolidation activity is heating up in the digital signage space.

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

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

WPP Consolidates Mediaedge and MindShare Into New Outdoor Media Giant

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

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

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

Read the entire story.

Focus Media Initial Public Offering

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

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

Webpavement Meets the Needs in Education

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

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

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

Supermarket Advertising Works - WPP and Mediaedge Study

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

Finding of the study:

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

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

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

Digital Signage Benefits from Mass Media and Technology

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

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

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

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

Digital Signage Industry Report List

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

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

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

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

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

Digital Signage Patent

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

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

Click to see to the full patent application.

United States Patent Application
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

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

Infocomm Digital Signage Pavilion 2005

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

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