Digital Signage Connection

When the retailer Wannamaker uttered in the 1920’s: “Half my advertising is a waste, I just don’t know which half;” it was a call to action by every communications medium to validate its value, particularly relative to competing and alternative media.

A presenter at a recent advertising conference exclaimed, “Marketing and advertising are terrific – because nobody knows when you are making a mistake. And without analytics – nobody will ever know!”

Today, investment only goes into media that is measured and which, through analytics, can illustrate that it will deliver intended business, communications and marketing goals.

Technologies are the rocket, content is the fuel and analytics are the guidance system of digital signage, as I outline in my new whitepaper titled “Digital Place-based Media ROI Analysis - Defining Value,” available for free download.

Predictive models based on “if-then” scenarios supported by valid viewership and past performance metrics are the analytics domain of today and the “coin of the media” realm. Data sciences will continue to grow in the “Moneyball” world of media options, and fickle, elusive consumer, as well as uncertain paths to purchase and information access.

The well-established advertising planning and placement approaches have long been supported by viewership metrics that are validated by respected and independent audit bureaus, and are consistent in terminology and reporting approaches.

More mature media sectors, such as TV, Cable and publishing, are reinforcing their merit by using analytics to better describe, understand, connect with and target viewers. Aside from more highly targeted advertising, the ability to serve ads based on program viewing or viewing patterns is increasing. While some argue that broadcast metrics may be inaccurate, the point is made that at least these metrics are equally inaccurate across the platform, and advertising rates reflect relative values.

Digital media approaches have the inherent benefit of being able to capture engagement data with 100 percent accuracy, and in a manner that enables dashboard reporting and rapid investment adjustment to maximize value.

Social media, which aims to connect communicators with communities of interest, can benefit from online browsing and transaction data to help drive targeted advertising, editorial or “advertorial” messaging.

Mobile media, which aims to reach the audience of one or into peer groups by influencing an individual, also has the benefit of digital traffic counting.

Digital place-based media, which sits on the communications continuum as an out-of-home, high-reach, broadcast-type media, and a location-based, high-engagement media, is compelled to deliver metrics for decision support that meet advertiser, end user and investment requirements.

To not do so is to disqualify digital place-based as the valid and powerful medium that it is.

It is to some extent unfortunate that digital place-based does indeed deliver high value when applied even reasonably well. The fact that humans notice the motion of video or animated messages on displays that are prominently placed at points where people have a heightened awareness of their surroundings (i.e., shopping, travel, gathering, work and study) means that messages are noticed, and when relevant are “ingested,” with action being taken on compelling or influential content.

Outcomes can be seen as “good enough” and seductively, little attention is then given to performance improvement. Herein lies the opportunity cost of not using analytics.

Lyle Bunn is an analyst, advisor and educator in North America’s Digital Signage industry. He will present the SPEED II Digital Signage Training Program at DSE 2012. Contact him at Lyle@LyleBunn.com.