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What Is Digital Signage and What Are Its Marketing Advantages?

Digital Signage refers to a variety of technologies used to replace traditional retail signs. Instead of static print signs and billboards, digital signage is composed of electronic signs dispersing content and messages in the most targeted, interactive way. Digital Signage can be defined as digital content (audio, video, graphics and/or text) that can be remotely managed over an IP network to electronic displays for the purpose of informing or inciting changes in viewer behavior. Digital signage systems provide centralized scheduling, management, and publishing of digital media assets to on-premise LCD, plasma, LED, kiosks, outdoor billboards, video walls, and even a computer desktop.

There are a number of key drivers behind the projected growth of digital signage.

First, mass media's power to influence consumer purchase decisions has declined over recent years. The glut of hundreds of TV channels, spam, pop-up banners, bulk direct mail and telemarketing has led to consumer indifference. In response, marketers are increasing spending in alternative marketing channels such as search-based advertising that have the ability to deliver more timely and targeted messages.

Second, the ability of digital signs to deliver promotional messages at the "moment of truth" in retail-type environments has created a valuable sales opportunity for product marketers. Finally, lower costs for display devices and communication technology have made investments in digital signage projects more reasonable.

Liquid crystal displays, plasma display panels and scrolling message boards are a few of the more common in-store devices used to project full-motion video, sound and text. Digital signage enables a retailer to control and display their messages quickly and effectively.

Creating a digital signage system involves building a network of electronic devices that are controlled remotely from a central location. These devices present information via digital signage software to a targeted audience. Digital signage devices in the network may be plasma or LCD monitors, kiosks, projection displays, HDTVs or other electronic devices.

While digital signage installations are still somewhat novel, and they can certainly up the wow-factor of retail venues, it takes an ongoing sales effort to make those screens profitable and keep them loaded full of eye-catching content and advertisements. Even the best content can become stale if it's not kept up to date, eventually drawing only a zombie-like stare from employees and passing customers inoculated against its repetitive messages. And without viewership, of course, there is no audience to monetize.

Using digital signs in a retail environment has many features and benefits not offered by static displays and signage. Dynamic digital signage can grab a customer's attention and influence their purchasing decision right at the point of purchase. It also eliminates the high cost of creating and distributing print ad campaigns. Digital signage is instant and offers the ability to change promotions immediately for various products or particular customers. Another advantage of digital displays over static is that retailers can earn money with their digital signage network by selling advertising space to their suppliers. Whether it is intended to build a brand, influence customer behavior or simply provide information, the dynamic visual experience created by digital signage should ultimately increase sales. In order to achieve that goal, retailers will need to design the appropriate system.

The greatest value of Digital Signage is its ability to achieve a high return on investment (ROI) through revenue generation and/or cost reduction.

1. Impact your audience and influence consumer/employee behavior.
2. Improve productivity and work performance.
3. Build brand awareness; improve awareness of a particular brand, service offering or product line.
4. Increase store traffic and drive revenue/profits.
5. Encourage cross sales of complementary products and/or higher margin products.
6. Gain additional revenue stream by selling advertising space.
7. Reduce messaging and print costs.

About the Author

Founded in 1995, Helius, LLC is a wholly owned subsidiary of Hughes Network Systems, LLC (Hughes) and provides digital communications solutions for business. As industry leaders, we take pride in addressing the unique challenges that exist in the markets we serve, which is why leading companies turn to Helius solutions to solve their mission-critical communications needs.

Hughes Communications Announces Fourth Quarter and Full Year 2009 Results
Hughes Communications, Inc. , the global leader in broadband satellite network solutions and services, today announced financial results for the fourth quarter and year ended December 31, 2009.

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