SWOT Analysis: North American Digital Signage / Digital Out-of-Home (DS /DOOH) In ustry Relevance is at the pivotal point

of industry Strengths, Weaknesses, Opportunities and Threats

By Lyle Bunn November 2009 The status and indicated directions of North Americas Digital Signage and Digital ut! of!"ome #ndustry are outlined$ Si% &rimary categories are addressed 'ith the (ey Strength) *ea(ness) &&ortunity and Threat described for each category$ Through these ++ individual items the changing landsca&e of the industry) macro!trends and o&&ortunities are identified along 'ith the (ey trends that are influencing and im&acting the success of the industry ecosystem) initiatives and organi,ations$ As North Americas Digital Signage and Digital Out-of-Home industry continues to grow at a double-digit, compound annual growth rate, the status and directions in six primary areas are most significantly impacting the industry !hese areas include" A # % D ' & Application Demand #usiness $odels &inancing !echnology Human (esources 'fficiencies

'ach of these con)erges and intersects at a pi)otal point defined as *(ele)ance + ,n deli)ering the presentation of content in the conte%t of location and timing when measurable ob-ecti)es can be achie)ed, Digital Signage and Digital Out-of-Home distinguishes itself as one of the most powerful tools a)ailable to communicators !echni.ues such as playlist strategy, content composition, display configuration and placement, supply models, outsourcing, etc are tactical elements of each networ/, which support the operational success of indi)idual networ/s and their users

The !i"otal #on"ergence

A$$lication Deman
Technology Efficiencies

&usiness 'o els

%inancing

Human Resources
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As the mar/etplace for DS0DOOH continues to grow, successful pro-ects and networ/ operators sit at the con)ergence of a number of elements, which, when indi)idually managed, play significantly into assuring the sustained growth and success of indi)idual deployments and the industry at large !hese three primary areas include application demand, business model and financing !he industry at large is characteri1ed by the following" Strengths 2to be reinforced3 offer a strong foundation for gro'th$ 4ea/nesses 2to be minimi1ed3 are &roving not to be -sho'!sto&&ers$. Opportunities 2to be exploited3 &osition DS/D " for ongoing) sustainable gro'th$ !hreats 2to be neutrali1ed3 are addressable by the strengths of the sector$ Although called by many names, the term Digital Signage 2DS3 ser)es as an umbrella term to describe centrally-controlled and remotely managed electronic displays for information presentation in out-of-home en)ironments DS is applied to networ/s that are typically funded by internal communications or operational budgets for patron, )isitor, staff, student or community communications 5677 respondents to a fall 6778 industry sur)ey conducted by the Digital Signage Association reflected that 97: of displays ha)e no ;rd party ad)ertising, with 68: ha)ing less than half the airtime and only 57: of networ/s ha)ing <7:= of ad)ertising !he term Digital Out-Of-Home 2DOOH3 has gained broad acceptance in use to describe networ/s that are primarily supported by ad)ertising re)enues, since ad)ertising has typically been assigned from the *out-of-home+ budget Such networ/s operate on a forprofit basis and are typically owned by the location pro)ider or in)estors !he Out-ofHome >ideo Ad)ertising #ureau 2O>A#3 membership accounts for more than ?77,777 dynamic, location-based )ideo0digital displays, which present content and ad)ertising
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!he following chart summari1es the /ey Strengths, 4ea/nesses, Opportunities and !hreat 2S4O!3 to o)er)iew the status of North Americas Digital Signage0Digital Outof-Home industry 2!he letter at the front of each item corresponds to one of the six categories noted abo)e3 Additional commentary follows the chart Area Strengths (to be reinforced) Area Opportunities (to be exploited)

A *%ritical mass+ of displays has been deployed A @ositi)e results ha)e been achie)ed # #usiness models are stable % %A@'x can be accurately established % O@'x can be ad-usted to scale D !he technology wor/s ' 'xpertise exists in each area of business 2technology, sales, legal, etc 3 & New infrastructure for efficiencies impro)es the )alue proposition and positioning of the entire industry

Area A # % D ' & &

Weaknesses (to be minimized)

A %ommunicators see/ media that can better target and engage audiences, and demonstrate pro)en results A DS0DOOH fits into a communications continuum # DS0DOOH le)erages, and is le)eraged by other media % %A@'x and O@'x are declining as new suppliers emerge 2i e ND,3 % %A@'x can be financed easily D !he cost0effecti)eness and range of applicable technologies are increasing ' !echnology and business ecosystem partners ser)e as *extended staff+ ' A pool of unemployed or under-employed human resources is a)ailable & Approaches that bring business efficiencies are welcomed & Arowth of the industry at large increases the )iability of new elements0approaches that impro)e efficiencies Area Threats (to be neutralized) A Other communications wish to sustain0build their use and re)enues A Agents for ad placement on DS0DOOH are highly dispersed and may be shrin/ing with o)erall ad spending A Ad)ertisers lac/ the resources to exploit the metrics that DS0DOOH can pro)ide # (e)enue and pace forecasting ha)e many external dependencies % Scalability and success are concomitant D Supply options are increasing design and sourcing complexity D A broadening supply pool is dispersing re)enues and challenging margins

DS0DOOH is a new0emerging media All elements must be paid for by the communicator 2unli/e !>, mobile3 $any networ/s ha)e little corporate history and go)ernance0business infrastructure New suppliers lac/ application expertise @ersonnel re.uire application awareness in order to apply core professional competencies !he potential of future impro)ements may deter in)estment decisions 'fficiency impro)ements may challenge

existing practices on which in)estments ha)e been based

' Boss of employees minimi1es training (O, and may ha)e opportunity costs & !he more broad the potential for efficiency impro)ement, the more challenging its reali1ation

Application Demand Strength0 *%ritical mass+ of displays has been deployed, which allows ad)ertisers to reach targeted audiences based on demographic profile, Designated $ar/et Area 2D$A3, geography and e)en the acti)ity in which they are in)ol)ed 2shopping, transit, cafC, wor/out, attending a game, etc 3 O)er 5D7 ad-based networ/s exist with ?E of these 2as Out-of-Home >ideo Ad)ertising #ureau - O>A# members3 accounting for almost ?77,777 displays DisplaySearch reflects that almost 5 million displays ha)e been deployed in North America for dynamic media presentation to shoppers, patrons, staff and students A %ompound Annual Arowth (ate 2%AA(3 in display deployment of 6;: = is forecast !his growing critical mass substantiates the )alue of mar/eters and other communicators to consider, plan and use DS0DOOH 67: of the 5677 firms that responded to the fall 6778 industry sur)ey conducted by the Digital Signage Association indicate they will spend between F677G and F5$ per year on DS0DOOH !his represents 6?7 firms of the sur)ey respondents themsel)es expecting to spend a total of F?D to F6?7 million &orecasts by industry analysts place industry pro-ections in excess of F5 6# annually Suppliers can expect to en-oy ongoing high demand as" New networ/ deployments proceed 'xisting networ/s expand !echnology elements are refreshed and upgraded New functionality such as audience measurements 2i e %ogno>ision3, ;D 2i e @ro)ision3, and interfaces with point-of-sale, mass notification, loss pre)ention and other enterprise applications are made

Strength0 !hrough the application of DS0DOOH positi)e results ha)e been achie)ed such as sales lift, increased engagement, message awareness and recall, reduced percei)ed waiting times ,mpro)ement to the *location experience+ is regularly cited as achie)ed through DS0DOOH !he industry has de)eloped to the point of presenting o)er a million uni.ue ads in North American Digital Out-of-Home networ/s in 6778 Ad)ertisers, communicators, location pro)iders 2i e retailers, HS(, stadiums, etc 3 and networ/ operators ha)e consistently found that DS0DOOH networ/s achie)e )ery positi)e results when the medium presents suitable content to targeted audiences %onsiderable impact0results assessments ha)e been completed gi)en that DS0DOOH

medium has been re.uired to, and can, establish its measured )alue ,n its 6778 Digital Out-of-Home >ideo Display (eport, Arbitron reports that the medium reaches 9E: of American and that in a gi)en month, E9: of these recall seeing displays in multiple locations Displays in retail locations alone reach o)er <;: of Americans in an a)erage month ,n short, DOOH is measured as being seen and producing intended results for a growing number of ad)ertisers, retailers, consumer product0ser)ices pro)iders and location-based communicators Daina $iddleton, S>@, Director Sunao, $oxie ,nteracti)e says *the *passi)e intercept+ model does ha)e its place, and DS0DOOH can deli)er this, but media exploitation is more about customer engagement DS0DOOH can /eep the spiral of brand awareness and engagement growing and expanding %onsumer media consumption has changed+ *!he brand must tra)el where consumer are mo)ing+ says Alan Schulman, %hairman and %hief %reati)e Officer of 1D#2 -!he Digital ,nno)ations Aroup *Ad agencies are saying *3#NALL4I+ says $atthew Stoudt, %'O of Outcast, which has ad)ertisers such as >H5, Sony, #uic/, (ed #ull, !$J, %>S @harmacy and others using its gas station pump-top DOOH networ/ *ea(ness0 DS0DOOH continues to be an emerging media which see/s ad)ertising budget allocation at a time when long-standing approaches are entrenched and approaches outside of the status .uo, although they are pro)ing effecti)e, are often shown to be beyond the organi1ational capacity of ma-or agencies to adapt to new methods of ser)ing brand growth needs #eth Ann Gamin/ow, @resident K %OO) !racyBoc/e 2an Omnicom company3 suggests that changes are happening, noting to delegates of 6778 DS0DOOH ,n)estor %onference by Strategy ,nstitute e that *the bad economy has allowed us to disrupt approaches in fa)or of more effecti)e ways of doing things !he cement is still *wet+ in this transformati)e economy + &&ortunity0 %ommunicators see/ media that can better target and engage audiences, and demonstrate pro)en results !he economic benefits of using DS0DOOH as a more cost effecti)e approach will pre)ail as the installed base of DS0DOOH displays continues beyond a *tipping point + &&ortunity0 DS0DOOH fits into a *communications continuum+ offering both audience *reach+ and *engagement + !he DS0DOOH media platform can dri)e traffic to web sites and moti)ate mobile sessions such as recorded message access, texting, downloads, mobile browsing, mobile commerce and opt-in

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DS/DOOH on the communications continuum

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ngage!ent

Audience >>

Cellular

Internet

Digital Signage Billboard Newspaper Radio

!igital "ut#of#Home In#$tore T The %"uterNet& 'ocation#based (edia Narrowcasting

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DS0DOOH is not a *!ro-an Horse+ media scenario whereby sponsor and ad)ertiser messages are presented before0after entertainment or social content Ad)ertisers using !>, newspapers and internet for example, see/ to target )iewer demographics based on the possible attracti)eness of the content to )iewers %onsumers agree to accept ad)ertising in return for free content Howe)er they become easily disgruntled when ads are presented with *pay for )iew+ experiences such as subscriber !>, mobile, etc or if the proportion of ads o)er desired content becomes to great relati)e to what the consumer is paying for the media consumption Leff #ell, %hairman of DOmedia noted this consumer acceptance while addressing the DS0DOOH ,n)estor %onference, saying *Studies consistently show that people do not mind M in fact, *in)ite+ media in out-of-home en)ironments that stimulate them emotionally and intellectually + ,n addressing the 6778 DOOH ,n)estors %onference, Dr Beo Giui-ai) of @H $edia reflected that *DS0DOOH is not an *appointment media,+ as is the case with !> programs, newspapers and maga1ines *?<: of media is consumer out-of-home+ he said DS0DOOH is an *imperati)e+ media, which garners and compels attention when presented at *points of intention+ such as purchase, transit, )isit, wor/, leisure and learning DS0DOOH is not passi)e, selecti)e, opt-in or a)oidable DS0DOOH can be *all ads M all sponsored content+ because of acceptance of on-location media presentation by shoppers, consumers, staff and students, and the fact that they pay for none of the media presentation costs

Threat0 Other communications )ehicles wish to sustain0build their use and re)enues ,ncumbent approaches for ad)ertising such as !>, print, etc which ha)e generated a client base of ad)ertisers and fostered relationship in the ad)ertising supply chain as a way to minimi1e ongoing sales costs, are reluctant to surrender a)ailable re)enues @rice reductions, special offers, bundling and *a)eraging down+ are used to assure ongoing re)enues and sustain the supply relationships Threat0 Agents for ad placement on DS0DOOH are highly dispersed and media planning0buying organi1ations appear to be shrin/ing with reductions in o)erall ad spending %hallenges in the economy ha)e resulted in cutbac/s within ad)ertising agencies as they ha)e responded to declining le)els of ad)ertising commerce !his has meant a delay in in)estment into new areas of ser)ices to their clients, including impro)ed methods to reach consumers ')en as DS0DOOH has achie)ed a critical mass of deployment as the fourth screen 2with !>, internet and mobile3, the *mar/eting industrial complex+ is inclined to re)ert to methods of business on 'hich their billing and revenue models have been based$ #ut Gen Sonenclar, $anaging Director of DeSil)a=@hillips said during his 6778 DS ,n)estor conference presentation that *,n)estment dollars are mo)ing toward )iewer target-ability + He adds *,f tele)ision was in)ented today, there is no way that it would generate the ad)ertising rates or re)enues that it gets+ Threat0 Ad)ertisers lac/ the resources to exploit the metrics that DS0DOOH can pro)ide DS0DOOH has had to pro)e its )alue, 2as does e)ery new media3 through metrics, and while such metrics pro)ide e)idence of the strong achie)ement of communications goals, audience and demographic targeting capability, the time for data analysis re.uired to ma/e and fine tune mar/eting decisions is stretched in brand management, ad)ertising and mar/eting organi1ations ,t is fortunate and opportune that the e)idence of performance by DS0DOOH is strong and consistent in fa)or of the use of the medium, which typically is suitable to trigger in)estment Business odels

Strength0 #usiness models are stable !he /inds of resources and processes that are re.uired to pro)ide )alue to communicators are well /nown, and as the industry has matured the costs associated with networ/ deployment and operations ha)e become fairly well /nown '.ually, the types of funding and their sourcing are generally /nown, so the business models are /nown and stable, allowing for ongoing refinement to increase )aluation An area of inno)ation is in the blending of internal and external capabilities for proprietary digital signage networ/ design and ongoing operations A 677D D,A, Award recogni1ed Digital Display K %ommunications ,nc 2DD%3 M www thefullpicture com for their inno)ation in pro)iding networ/ planning, integration and deployment as well as content strategy, creation and administration in compliment to internal end user capabilities

@aul Straub, 5rinci&al) %laremont %ree/ >entures said to delegates of the Oct 6778 DS ,n)estor %onference in New Nor/ that *DOOH in)estment decisions are based on sol)ing a big problem, deli)ering an audience and capitali1ing on emerging beha)iors + He added *Successful networ/s ha)e absolute clarity on why they are deli)ering high )alue to communicators+ *ea(ness0 All elements must be paid for by the communicator 2unli/e !>, mobile3 Ad)ertising is typically an *opt-in+ scenario with messages accepted by the consumer on a de)ice that they purchase0own from a myriad of options ,n examples such as !>, ,nternet, mobile de)ices, print publications, etc the cost of the presentation de)ice is paid by the consumer and ad)ertisers are one of many, many communicators )ying for attention at a gi)en time and place DS0DOOH networ/ operators incur the costs of all presentation elements 2i e networ/, displays, etc 3, as would apply to billboards, direct mail, circulars or alternati)e out-ofhome media ,n a fair *exchange+ with consumers, DS0DOOH is not an opt-in media $otion images presented at a point of purchase, waiting, transit or gathering location compel attention to inform and influence ,n fact, this *platform payment+ scenario is a strength through which DS0DOOH en-oys )iewer acceptance &&ortunity0 DS0DOOH le)erages, and is le)eraged by other media DS0DOOH is a completely *digital+ media supply chain including digital content creation, management, distribution, presentation and display reporting As such, messages intended for presentation on other media can be easily reconfigured for effecti)e use on DS0DOOH Ai)en the lower costs of content production and presentation, and the ability to assess message impacts with targeted demographics, DS0DOOH is well suited for message testing prior to campaign placement using other media 2in particular !>3 !he tighter audience targeting and dayparting that is easily possible and an inherent strength of DS0DOOH allows it to moti)ate engagement with other communications )ehicles and pro)ide high return on mar/eting in)estment in situations where consumer action is intended Threat0 (e)enue and pace forecasting ha)e many external dependencies 4hile business costs can be accurately estimated, re)enue forecasting is challenging, which can deter in)estment and build-out decisions !inancing Strength" %A@'x can be accurately established !he technology infrastructure and capital expenditures related to DS0DOOH deployment are well understood with the numerous supply options ser)ing to )alidate re.uired in)estment le)els 4hile the le)els of

technology functionality continue to rise across the technology ecosystem, the price0performance of indi)idual elements is trending fa)orably Strength" O@'x can be ad-usted to scale Operating expenses such as networ/ operations, playlist administration, etc can be contained during deployment start up and growth, expanding only as the si1e and complexity of the networ/ is warranted *ea(ness0 $any networ/s ha)e little corporate history and go)ernance0business infrastructure !his lac/ of credit history can impair capitali1ation, howe)er in many cases this is o)ercome by sound business planning, a strong management and ad)isory team, and the early achie)ement of location and ad)ertising commitments &&ortunity0 %A@'x and O@'x are declining as new suppliers emerge Arowth of DS0DOOH has included industry entry by larger technology and ser)ices pro)iders As each brings its supply strengths and capacities to DS0DOOH, the costs of infrastructure and operations will decline An excellent illustration of this is in the pro)isioning of digital datacast connecti)ity by National Datacast ,nc , 2ND,3 as an alternati)e to DSB, satellite or cellular connecti)ity !his national digital connecti)ity can be installed .uic/ly and inexpensi)ely with monthly connecti)ity being pro)ided at under F;7 per month per location for large deployments ,n an October 6778 sur)ey underta/en by the Digital Signage Association, ?<: of the 5677 sur)ey respondents indicated that *displays are not networ/ed+ with a further 5D: responding that *some are M some arent + !his indicates that many installations are not en-oying the economies or flexibility of DS0DOOH !he *snea/er-net+ approach means that )ery li/ely, playlist0content refresh is minimal and that connecti)ity may be too difficult or costly 4hile this suggests the high )alue of low cost datacasting, it also points to the enabling )alue of new, high capacity suppliers to the DS0DOOH mar/et &&ortunity0 %A@'x can be financed easily &inancing of information technologies is a mature industry with many firms 2such as @N% '.uipment &inance and others3, pro)iding lease financing which *turns the %A@'x into O@'x + !his can accelerate networ/ roll-out and substantially reduce e.uity in)estment re.uirements Threat0 Scalability and success are concomitant !he abilities to expand a networ/ and its contribution to ad)ertiser and communicator goals, both effect and are effected by each other !his *what comes first M the chic/en or the egg+ analogy applies at the genesis of the networ/ and then .uic/ly shifts to ha)e networ/ growth fueled by its )alue *4all Street+ must be cautious not to consider the financials of a few publically-traded billboard companies and extrapolate analysis across )ideo networ/s

Technolog" Strength" !he technology wor/s !he *technology ecosystem+, which is a supply chain for digital media presentation has been a strength of DS0DOOH and is attested in the reliability of a broadly deployed range of networ/s !he *leading edge+ is common ')ery supplier offers leading edge technology and so the real issue is in selecting enough functionality to allow the networ/ to be increasingly )aluable in meeting changing, better refined and more challenging communications ob-ecti)es *ea(ness0 New suppliers lac/ application expertise !he successful planning, design, deployment and operations of DS0DOOH is based on /nowledge of digital technologies, business management and communications practices 4hile strengths in one or more areas may instill confidence for a supplier or end user to mo)e forward with initiati)es, wea/nesses in other /nowledge areas will .uic/ly emerge as the technologies are expected to meet e)er increasing communications needs ,n the interest of re)enue achie)ement or pro-ect ad)ancement, pro-ect planning is at times inade.uate A further concern is in the abilities of suppliers to design and architect systems that use digital technologies based on ,nternet @rotocols DS0DOOH can be complex compared to *closed,+ one-location audio0)isual systems, yet digital signage appears to be a natural extension of other )isual presentation media and systems &&ortunity0 !he cost0effecti)eness and range of applicable technologies are increasing 'lements of the DS0DOOH technology ecosystem are increasingly *bundled+ and preconfigured to enable easier deployment !his pro)ides an excellent opportunity for suppliers and end users to deploy smaller systems, which may ser)e as *proof-of-)alue+ and *process refinement+ initiati)es ,n a Digital Signage Association sur)ey of 5677 respondents, a third of respondents expressed that they would add functionality such as audience measurement, ;D, interface to @OS, etc $any belie)e that interacti)ity with mobility, touch screens and social networ/ing will impact DS significantly o)er the next 6 years !hese suggest an a)ailable *after mar/et+ or upgrade path for suppliers ,t also bears noting that displays and media players that are nearing *end-of-life+ offers a ready opportunity to upgrade technology platforms and elements that allow DS to better ser)e communications ob-ecti)es Threat0 Supply options are increasing design and sourcing complexity As new suppliers see/ DS0DOOH industry re)enues, new options for technology, ser)ices, pricing structures and supply sourcing are made a)ailable !he in)estigation of these can delay funding commitments

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Threat0 A broadening supply pool is dispersing re)enues and challenging margins !he broader based of suppliers can result in the dispersion of re)enues across the wider supply base and the erosion of .uality as pricing is reduced in response to competiti)e pressures #uman $esources Strength" 'xpertise exists in each area of business, technology, ad sales, legal, etc and the growth of DS0DOOH is attracting talent !he excitement and opportunities around DS0DOOH ma/e it attracti)e as a professional choice, ser)ice area and target mar/et ,nformation and education program are readily a)ailable to accelerate supply and management capabilities ,ndustry publications offer insights and news on a daily basis, with *best practices+ being readily shared by end users, networ/ operators and suppliers 'xtensi)e information and interaction are a)ailable at industry e)ents such as the Digital Signage Show0Gios/%om 2No) 8-55 New Nor/ and $ay 6757 Bas >egas3, Digital Signage 'xpo 2&eb 6<-6E, 6757 Bas >egas3 and ,nfo%omm 2Lune 67573 NA#, %'S, Strategy ,nstitute and other e)ents offer training opportunities resulting in a do1en useful education forums being offered annually An estimated ?,777 end user and supplier personnel ha)e recei)ed structured training in aspects of DS0DOOH during 6778 in North America 2O)er 5577 of these ha)e participated in all or parts of the *S@''D+ Digital Signage !raining @rogram as outlined at www Byle#unn com0S@''D3 !housands more ha)e attended a)ailable training, orientation, corporate promotion, technical and conference sessions, and tens of thousands ha)e gained DS0DOOH perspecti)es from supplier meetings and presentations News items, case studies, reports and perspecti)es are widely a)ailable through online and print media $any companies ha)e *unplanned downtime+ and professionals /now they must broaden and0or deepen their s/ills to assure ongoing success 'ducation is a)ailable &re.uent webinars and )endor meetings characteristic of a robust, high growth sector are )ery useful for escalating industry capabilities !his le)el of training bodes well for the future success of the DS0DOOH industry *ea(ness0 @ersonnel re.uire application awareness in order to apply core professional competencies *Application awareness+ includes an understanding of the technology capability, business models and communications ob-ecti)es ser)ed by DS0DOOH &&ortunity0 !echnology and business ecosystem partners ser)e as *extended staff + No single company can pro)ide all aspects of a DS0DOOH system and so supply includes a number of product and ser)ice pro)ides !hese suppliers ser)e as *external, extended

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staff+ to end users, networ/ operators and other suppliers !he pool of experience and talent is therefore expanded with each deployment while the capacity for collaboration and solutions integration is e)er expanding &&ortunity0 A pool of unemployed or under-employed human resources is a)ailable Some networ/s and suppliers ha)e ta/en ad)antage of economic conditions to refine their offerings and trim elements of their operations As such, talented human resources are a)ailable to organi1ations wishing to impro)e their capacities *#+ and *%+ le)el talent that may be trimmed from one company can be an *A+ le)el hire in another (elie)ed personnel can bring strong capabilities to lateral mo)es or into a different DS0DOOH product0ser)ice area Human resources in related businesses such as content creation, system integration, ad sales, etc may see excellent prospects in the DS0DOOH industry while bringing talents that can be easily integrated with the DS0DOOH business to meet its growth potential Threat0 Boss of employees minimi1es training (O, and may ha)e opportunity costs !he trimming and down-si1ing that characteri1es economic downturn reduces costs but may also reduce the prospects for prosperity As firms see/ to *trim the fat+ it is possible that some may *cut into the muscle+ which diminishes ser)ice potential while surrender personnel to contribute to other situations %fficiencies Strength" New infrastructure for efficiencies impro)es the )alue proposition and positioning of the entire industry Operational collaboration and corporate aggregation are pro)iding efficiencies in ad)ertising sales and networ/ operations Ad)ertising sales collaboration has proceeded on the basis that the offer of the larger display in)entory of multiple networ/s aimed at achie)ing a single, larger ad insertion order is more compelling and better uses the time of media planners and buyers as well as ad sales personnel, than the o)erlapping and duplicated efforts associated with ad placement on many indi)idual networ/s ,ndi)idual networ/s are collaborating in particular in situations where each networ/ offers a similar target demographic or locations 2i e doctors offices, etc 3 !he suppliers of media management software and other technology elements are also encouraging networ/ collaboration through the introduction of similar networ/s to each other Ai)en the critical importance or high )alue of ad)ertising re)enues to networ/s, it could be expected that primary suppliers will accelerate their efforts to impro)e the efficiency of ad re)enue achie)ement ,mportantly, se)eral ad sales agencies focused on DS0DOOH offer ser)ices that can dramatically impro)e the efficiency of ad0campaign planning, placement and selling

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Adcentricity, SeeSaw Networ/s, r>ue and other emerging approaches offer efficiencies and effecti)eness $edia conflict and collision is changing e)ery media business model %ampaign planning and placement, followed by insert order direction, compliance reporting and accounting offers to substantially increase the efficiency of ad0content placement across networ/s Harris %orp has de)eloped media wor/flow architecture and *@unctuate+ campaign management software to allow the same ease of ad)ertising in the DS0DOOH industry as enables the broadcast !> and cable industries &urther, DOOH ad)ertising opportunities are being included in ad)ertising proposals for other media !hese multi-platform proposals can readily include DOOH with !>, cable, mobile, static billboards and print media As DS0DOOH networ/s use web-browser interfaces and *Software as a Ser)ice+ 2SaaS3 the sharing of networ/ operations centre resources offers efficiencies *ea(ness0 !he potential of future impro)ements may deter in)estment decisions !echnologies buyers are watchful for the suggestion of products and ser)ices that hold the promise of substantial price0performance impro)ements or significant price reductions An inherent wea/ness in the inno)ation life cycle is that it can cause a delay in in)estment decisions DS0DOOH is characteri1ed by incremental impro)ements in component products and ser)ices, the ease of integration, reliability and price0performance !he offer of new capability to the industry tends to include ad)ance public information through industry media and pri)ate presentations to /ey industry sta/eholders 'xamples include the DigitalSignage!oday articles and whitepaper on datacasting, the un)eiling of @unctuate by Harris %orp at Digital Signage 'xpo in &eb 6778 and others *ea(ness0 'fficiency impro)ements may challenge existing practices on which in)estments ha)e been based Approaches that offer enhanced functionality at a gi)en pricing le)el or reduced costs for planned purchases merit ad-ustment to business plans and forecasts 4hile these are typically welcomed as positi)e contributions to increased competiti)eness and profitability, significant changes 2such as switching suppliers3 or fre.uent changes can disrupt operations and challenge the credibility of sourcing strategies, in)estment re.uirements, etc ,n short, *change+ though often merited, is disrupti)e &&ortunity0 Approaches that bring business efficiencies are welcomed As DS0DOOH has mo)ed through its growth stages from *@ioneering+ 2588;-67753 to *Settling+ 26775677?3 to *#uild-out+ 2677?-677D3 to *#rea/out+ 26778 M onward3, continuous impro)ements in all /ey elements of the industry ha)e occurred As the industry reaches new plateaus of critical mass and application in ser)ing brand and enterprise communications goals, impro)ed approaches and industry infrastructure that can enable

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the success of networ/s will be welcomed No pro)ider in any category of the industry has such dominant positioning as to deter in)ol)ement by others &&ortunity0 Arowth of the industry at large increases the )iability of new elements and approaches that impro)e efficiencies As the installed base of networ/s and operations in the industry grows, the sector becomes more attracti)e to supply, funding and user organi1ations that typically re.uire Threat0 !he more broad the potential for efficiency impro)ement, the more challenging its reali1ation !he saying goes that *to ma/e an omelet, you ha)e to brea/ the eggs + About the Author: Lyle Bunn is a highly regarded inde&endent consultant) advisor and educator to end users) net'or( o&erators) su&&liers and investors in North Americas Digital Signage 6DS7 and Digital ut!of!"ome 6D "7 industry$ "e has contributed to the develo&ment and de&loyment of many customer) &atron) student and staff!facing net'or(s) and to the success of (ey su&&liers to the industry$ Lyle has &ublished over 80 articles and 'hite&a&ers) and his eBoo( -Digital Signage 5lanning 2uide). no' in its 9th edition is used around the 'orld$ "e is the author and &resenter of the &o&ular -S5::D. Digital Signage Training 5rogram$ Lyle serves as Academy 3aculty and a member of the 5:T; <isionary ;ommittee of #nfo;omm #nternational) as 'ell as the Digital Signage :%&o Advisory Board #ndustry ;onsultant=s ;ouncil and the Board of Advisors of >ios(;om/Self Serve :%&o ? Digital Signage Sho'$ "e is a regular contributor to Digital Signage Association events as a member of the industry association$ Lyle 'as the only individual named to the Digital Signage 3orums 200@ Digital Signage To& Ten List) listed among such cor&orations as Thomson) +A) ;lear ;hannel) 3ocus Aedia and others$
'yle Bunn "rincipal # Strategy Architect B)NN Co* "ffice+ ,1-#./0#1121 Cell+ .1,#12.#..2, 'yle3'yleBunn*com -2 Bayshore Road4 Brighton4 "nt* 525 1H2 www*'yleBunn*com !igital $ignage 6 !igital "ut#of#Home Counsel and Education for networ7 operators4 suppliers4 in8estors and users*

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