Using Municipalities as a DOOH Advertising Catalyst

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By Dikran Tawitian, Marketing Manager, Infinitus
 
Digital signage companies are currently jostling for a more significant position within the out-of-home advertising industry. So far, their efforts have been a qualified success at best.
 
Out-of-home advertising is a complex environment to work in. Existing business processes are fairly rigid because the industry is well developed. Digital signage is trying to infiltrate and change the old order; not an easy task. And when you consider the high capital investment that is initially required, and the lack of proof of concept, it is no wonder that OOH players are reluctant to jump straight on the DS boat.
 
Advertising agencies have a huge influence on advertisers and their promotional expenditure. However, it is too much to expect from them to push OOH network owners and advertisers towards the conversion to digital, since there is little in it for them. They are already established in the market, and may not see many benefits in pushing DOOH, beside the intangible benefit of differentiation against competitors, which will really only be appealing to smaller players.
 
In any case, there is a long way to go before DOOH becomes a mass business. Besides well-established LED displays which can be seen from long range, LCD displays for mid to close range communication should be more widely deployed. To facilitate wider acceptance of DOOH, city-wide networks need to be developed, which cover high traffic areas. This needs to be combined with innovative technologies which will engage target audiences.
 
Adaptation and Disruption
 
At present, efforts are underway to standardise DOOH advertising, develop measuring techniques, research the effects of DOOH advertising networks, connect up networks to allow for national campaigns, lower the cost of installation and post-purchase costs, and improve ease of use. DS players are also learning how to present digital signage to advertisers, creative agencies and OOH network owners. So what more can be done?
 
I believe that besides adapting to the existing OOH concept and business practices, and trying to ease the pain of OOH players venturing into the digital world, we need to shake up the business environment, by bringing in important yet possibly overlooked stakeholders and introducing new elements to the playing field.
 
I am proposing that we apply pressure from a new angle. We need to stimulate location owners, be they municipalities or private organisations, to recognise the additional benefits they could gain from DS networks. In this way we, as an industry, can augment the efforts of those who are adapting to the traditional ways of doing business within OOH.
 
We should be making location owners realise that as well as providing revenue-generating advertising space, digital signage can provide much more. The potential for rapid communication of information to people on the go could be really valuable for such people, and the fact that audiences themselves can shape the media should make the technology even more attractive.
 
Seen from this perspective, it becomes clear that digital signage benefits all parties. Members of the community can obtain access to relevant information channels, location owners can increase the value of their locations and enjoy a new means of interaction with the public, and advertisers can exploit a highly targeted and engaging communication channel. Once this message has permeated public consciousness, OOH owners will be driven to create wider digital medium networks. Once a permanent infrastructure is built, OOH owner business will end up reaping the benefit.
 
So, the key is to persuade municipalities and local authorities of the desirability of the new medium. This will urge OOH players to step into digital world faster.
 

 
Outlining Practical Examples
 
To put all this into some sort of context, let us consider the imotion outdoor LCD solution. imotion products are large format outdoor LCD displays for HD visual communication. They can be supplemented with add-ons to allow for higher levels of targeted audience engagement. How are we at Infinitus executing the aforementioned ideas? We are trying to communicate to urban local authorities the inherent value in acquiring an intelligent and flexible channel, which can be used for improving communication with citizens, commuters and tourists. In this way, we are indirectly applying pressure to OOH players to adopt the technology, via a key stakeholder, the public landowner.
 
We have also designed our products with this strategy in mind. Our imotion HELP line can be used alongside ‘regular’ city communication as tool for educating the public about healthcare issues, mainly SCA (sudden cardiac arrest). This brings in new groups such as departments of health, internal affairs and the emergency services. There is great untapped potential for networks of community-responsible digital signage.
 
I could go on listing the benefits of this approach to digital signage, but that would require a much longer article. We need to stimulate OOH players to accept change by making the people who manage urban locations and city planning apply pressure. In the future, I hope that the current eyesore out-of-home displays will have been replaced by multi-functional media which deliver a wide range of benefits to communities.