Out-of-Home Digital Advertising Networks Defined

Prepared for Strategic Capital Partners Portfolio Management AG by Osborne Reports

In a nutshell, out-of-home digital advertising is a marketing medium that delivers messages (content) targeted to specific segments of the public defined by demographic attributes, values and preferences, and does so using electronic displays that are networked to computers that control what is displayed and when.

Displays

The term display can describe a number of different types of electronic signs. These include LEDs (light-emitting diode) displays, LCDs (liquid crystal displays), CRTs (cathode ray tubes), plasma screens, projection systems, and electroluminescent or electronically activated ink panels. Not all of these are “digital” in the strict technological sense. But the term is used as a blanket description, not only because most displays are now, in fact, digital, but also because the trend is overwhelming in that direction.
Displays can range from monochromatic to full-color, and from small screens that are placed for individual passenger viewing to giant billboard-sized or even building-sized screens that can be seen clearly from blocks away. Creativity and technological advancements are cutting a broad path for diversity in the types, sizes and capabilities of screens.
For example, Adwalker, a Dublin-based company, makes a special suit with a screen built into the chest area. These walking advertisements may soon be seen in British airports and other highly trafficked venues. The digital-age sandwich boards can be hooked up to a portable printer and a credit card reader, allowing the Adwalker to print out coupons or sell things like rental cars to vacationers as they wait for their flights.
The French out-of-home advertising giant, JCDecaux, which recently won a contract to place 1,600 digital advertising screens at London’s Heathrow Airport and other locations, is producing screens with interactive capabilities and Bluetooth technology. A communication link between these screens and mobile phones is one application of this interactivity.
How “smart” have displays become? While there is nothing new about placing posters in restrooms next to mirrors, above urinals and in stalls, advanced digital displays in these same locations can now speak and sing, emit fragrance and dispense samples.

Content

The images shown on digital displays are referred to as content. These images consist of text, graphics, animations, photos, video clips, live broadcast feeds and more. The possibilities are virtually limitless.
Numerous software programs are available that allow everyone from beginners to experienced graphic design professionals to create content.
Many of the same software tools used to create graphics for print and broadcast media are used to produce digital display content. Those who generate this content, however, should be aware of the specific parameters and limitations of the different display types. Adjustments may have to be made for resolution and colors, which may show differently on an LED screen than they would on, say, a plasma screen.

Content Management

The process of directing, timing and scheduling content is called content management. This is almost always done from a computer at a remote location, allowing advertisers to customize the content and immediately change or update what is being shown. One display or a vast network of displays can be controlled from a single computer.
The first out-of-home digital advertising displays were stand-alone units beset with a number of limitations and drawbacks to their effectiveness and operational efficiency. Content generally played in a continuous loop, rarely giving viewers the chance to see the entire presentation from start to finish. Because most content played over and over again, people who frequently saw these displays learned to tune out and tended to not pay attention to the advertisements. Moreover, these stand-alone units did not give advertisers flexibility of time and location of content play. This made it impossible to target specific market segments and to modify and update content accordingly.
Forward-thinking companies are now attacking these drawbacks, bringing digital network content management to a higher new level. 1-2-1 VIEW™ Corporation is one of the frontrunners in this rapidly evolving arena. Previously part of BNS Corporation, a leading IPTV technology and solutions provider in the Asia Pacific region, 1-2-1 VIEW™ was recently acquired by an aggressive company with capital and growth aspirations, while BNS retains an approximate 20 percent stake. Headquartered in Hong Kong and with offices throughout Asia, 1-2-1 VIEW™ has developed a digital signage and media management system with one-to-one targeting and real-time effectiveness measurement capabilities.

Computer-Routing Systems

Computer-routing systems are the hardware and software technologies that enable communication between the displays and the computers from which they take their signals. These systems are used by those who control the content of digital displays to deliver the coded signals from real-time or prerecorded sources to the displays. They can be wireless (wi-fi) or telephone-like wired systems. They often use the Internet for remote communications.