• The New Age of AdvertisingYour Place:HOme - Light news
  • Auhtor:    Time:4/23/2015   Hits:1580
  • Large Retailers Adoption of Digital Signage
    National retailers such as Macy’s, The Gap, and Foot Locker see the potential of leveraging Digital Signage technology to increase sales and have already adapted the use of Dynamic Digital Signage to promote their own brands nationwide.

    Third party advertisements are being displayed in targeted locations to increase revenue. As an example, McDonalds is placing their ads in Foot Locker’s in-store video network. Wal-Mart is upgrading its vast in-store television network at their 2,600 locations to promote products sold within their stores. According to Wal-Mart, their TV operation captures some 130 million viewers every four weeks, making it the fifth largest television network in the United States after NBC, CBS, ABC and Fox.

    Advertisers are willing to pay $137,000 to $292,000 to show a single commercial for a four-week period, depending on the length of the ad and the number of stores where it is shown. This illustrates the positive effect on purchase decisions at the point of sale when the right message is delivered at the right location at the right time. The implementation of Digital Signage by large retailers has validated the benefits of this new technology. Furthermore, the rapid decline in costs for LCD, plasma and projector displays bring digital signage into mainstream business.

    Independent Retailers Embark on Digital Signage
    Digital signage is no longer the exclusive domain of national retailers. Independent storeowners can access new opportunities because advanced platforms are available today, which overcome the barriers in terms of price and implementation. Besides in-store promotions, storeowners can sell ad space to both local and national advertisers to increase revenues. Value Added Resellers (VARs) such as sign shops and hardware providers can offer services to businesses wanting a hands free operation. Services including hardware installation, content creation and content management provide more ways to bring in businesses for VARs. Cross advertising helps in the promotion of local businesses whose ads are viewed by local customers that shop or seek services in the same area.

    Subscription Service Lowers the Cost
    Most business owners associate the implementation of digital signage with big investment in hardware and software. With the latest software technology, any PC and monitor can be turned into an electronic display system. ‘Application Service Provider’ (ASP) is a technology that delivers software over the Internet as a “Subscription Service”.

    There are many distinct advantages using the ASP model; it allows small to medium sized business to access sophisticated full-featured software, low initial cost, no software installation, no maintenance and software upgrades are being done for you. The system uses simple hardware and the application can be accessed from any PC on the Internet making ad-posting and content management for multiple stores feasible. System reliability is much higher when the platform is maintained by a professional service provider as in the ASP model.

    Businesses subscribed to ASP use the software by paying a low monthly fee rather than spending thousands of dollars in building their own systems. Depending on usage, the fee would be as low as a hundred dollars a month. This also gives them the tax advantage when the entire subscription fee can be written off versus the typical extended depreciation term of purchased assets. In addition, they save on the cost of technology ownership and conserve resources for their core business.

    Content Generation and Management
    In order for digital signage to become a mainstream product, the software must be tailored to non-technical people and should not have to rely on outside specialists to create and maintain the content. A few key issues associated with using signage software include: content creation, content management and distribution. The ASP model, along with innovative applications, can sufficiently reduce these barriers for any business to employ digital signage.

    ASP allows customers to start using the software by signing up for an account through the web site, much like signing up for an email account. Once the account is created, customers can start posting their own messages within minutes from their own PC or any remote PC. A simple and intuitive interface is needed to let first time users grasp the concept and start using the software with minimal training.

    Content creation generally requires someone who has knowledge in graphics design which can add to the cost for employing digital signage. This can be addressed by providing advanced applications for composing dynamic content automatically with the input of raw images and type-in text. The advanced application would also provide the ability to edit content easily and changes can be updated to various display locations in seconds. This is especially useful for store managers who have to monitor the selling rate of discounted items and vary the percentage discount accordingly. Dynamic content generation is also useful for emergency alerts, news broadcast and special announcements at the facilities. Most platforms accept graphics, movie and flash files in common formats. Users set the display schedules and locations ahead of time and tending the content becomes a simple task.

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