Digital signage is the concept of installing a number of liquid crystal displays in an establishment. These LCDs can play the same message or different messages. They can also show a regular TV station with a tailored banner scrolling anywhere on the screen.  These LCDs need to be driven by a computer running scheduling software to time the running of various messages. This software is run on a local computer but is best coordinated by a centralized server. The central server would store all the information to be displayed on the remote LCDs and the timing of their showing. This ensures ease of updating the content displayed.  Solutrea plans to operate a digital signage system with initially hundreds of LCDs to grow to thousands within two years. This network will then be offered to advertisers for branding their products.

The major issues with digital signage are content (it is expensive to produce high quality video content) and the uncertainty of the return on investment. Solutrea plans to address the content through contracting a flash production agency that specializes in producing low cost high quality material in third world countries and through working with local media production companies. Solutrea hopes that lowering the cost of the offering will improve the chances of generating positive return on investment.

Isuppli/Stanford Resources reported that the worldwide retail signage market was 1 million in 2006 with a growth projection of 29 percent compounded annual gross rate to .35 billion in 2009. (Richard Trask, Scala, ArchiTect Mag.)

In 2006 more than 26,000 companies will implement DDS systems, nearly 92,000 sites with at least one networked display, and an installed base of over 387,000 displays.  These 26,000 companies represent only 1.6 percent of the 1.6 million retail and service companies that have more than one business location that could implement DDS systems. (Richard Trask, Scala.  Pub.in Archi.Tect Magazine)

Revenue Potential:

Wal-Mart is upgrading its vast in-store television network at 2600 locations to promote products sold within the stores. According to Wal-Mart, the retailer?s TV operation captures some 130 million viewers every four weeks, making it in effect the fifth largest television network in the United States after NBC, CBS, ABC and FOX. Advertisers are willing to pay 7,000 to 2,000 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. (Yvonne Li and Greg Gilbert of Adurance 05-2005)


Driving force:

Trish Wheaton, president of Wunderman Canada, who was recognized as 2004 Marketer of the Year, said the marketing industry needs to move from cost per thousand (CPM) to return on investment (ROI) and investment effectiveness metrics. The shift from ?mass? marketing to ?measurable? marketing is part and parcel of the shift from network TV to digital signage and purchase location signage.  (Lyle Bunn, BTV+ in Broadcast Engineering Jun 2005)

Utilizing a simple marketing pyramid such as the one below.

With a crisp message that the content viewers prefer and identify with, greater attach rate will be realized. For example, in a spa the message is on wellness and rejuvenation: Digital signage is the ad medium that will allow this process to be adopted. When this is achieved brand loyalty has been established for the vendor which in turn drives all promotional and marketing collateral.  The patrons will rely on the soft sell (driven by digital signage) to up-sell their services and product offerings. This will result in quicker payback and profitable venture (ROI).

Part of the strategy is also to acquire companies that add value to this objective, via M&A's that help Solutrea achieve this critical mass in footprint or in turn key technology solutions.

Solutrea's message is to promote simple yet thorough deployments providing the best in class support and maintenance.

Digital Signage Content
The content displayed on digital signage screens can range from simple text and still images to full-motion video, with or without audio. Some operators of digital signage networks, particularly in the retail industry, regard their networks as comparable to television channels, displaying entertaining and informational content interspersed with advertisements.

Uses of Digital Signage:

• Sharing of information ? for public areas could be for schedules such as flight information in airports and wait-times for the next train
• Advertising Related to the Location to Uplift Sales ? examples include in-store promotions in a retail establishment
• Advertising by Third Parties ? examples include restaurant-based digital signage networks that sell advertising to local merchants/service providers and national advertisers
• Enhanced Customer Experience ? examples include digital signage in restaurant waiting areas to reduce perceived wait-time and recipe demonstrations in food stores
• Influencing Customer Behavior ? examples include post office digital signage that directs patrons waiting in line to automated stamp machines and retail digital signage designed to direct customers to different areas of the store, increasing the time spent on the store premises (dwell time)
• Brand Building ? examples include Niketown stores where digital signage in video form is used as a part of the store d?cor to build a story around the brand.
• Interactive signs can help customers improve their shopping experience.