Out of Home Advertising Networks

Digital Out of home or DOOH networks are also commonly referred to as captive audience, or narrowcast networks. All these terms describe digital media systems that are placed in locations where consumers can be reached such as convenience stores, retail stores, cinemas, and shopping centers. Anyplace where consumers wait for services such as pharmacies and auto repair facilities are also prime candidates for marketing and advertising information to be transmitted to them via digital signage displays.

The failure to adopt digital signage will place businesses at a competitive disadvantage. Frost & Sullivan believes that 90% (retail chains) will have installed digital signage networks in their outlets by 2011.

Major corporations have begun rolling out retail digital signage systems throughout the country and in Europe. Wal-Mart and Home Depot already have systems in operation. Successful networks are designed to enhance the consumer experience at the point of sale. This is accomplished by providing motivating advertisements and revelent information when a consumer is making a purchase decision.

retail digital signage advertising markets

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A Gas Pump Video Display

Merchandising programs of this nature are expanding rapidly due to the positive return on investment they provide. Advertisers are rapidly shifting dollars to this new medium. A Deloitte Consulting study commissioned by the Grocery Manufacturers Association found that in the three year period from 2004-2007 in store ad spending doubled. P&G's annual budget for OOH advertising was reported to be $500 million for 2007. This represents a 21% CAGR compared to Internet advertising at a 15% CAGR.

NEW YORK (AdAge.com) -- "Spending on alternative media hit $73.4 billion in 2007, a 22% increase over the previous year, and will continue to grow, according to a study from research firm PQ Media, which also predicts that by next year alternative media will represent 26.6% of all advertising and marketing dollars."

Industry Press

Title	Publication	Excerpt
C-stores show 88% sales lift with digital signs. Sept 2008	Digital Signage News	Preliminary results were reported from a 1-year study of Point-of-Sale (POS) sales data collected from a 400-store C-Store centric network, which includes 240 stores equipped with networked digital screens and 140 control stores. The network reaches major and minor DMAs on the east coast. The results measured for advertised products across multiple categories, showed sales increases of up to 88%. When averaged, advertised product dollar sales rose 26% while product volume increased 18%.
The battle of the pump-top displays! by James Bickers, Editor July 2007	Digital Signage Today	Pay-at-the-pump technology turns 20 years old this year, and it has been a success by anybody’s standards. In 1994, 13 percent of c-stores offered the time-saver; today, that number has risen to 93 percent. But perhaps it has worked a little too well. Margins on gasoline are razor-thin, compared to the higher profits made on items sold in the store. And pay-at-the-pump has meant a drastic decrease in store traffic. (Read Complete Article)
Digital Signage Advertising en Route to Becoming a Multi-Billion Dollar Industry Out-of-Home Digital Display Networks to Generate $2.7 Billion in Advertising Revenue by 2013 by NSR Consulting, April 2008	Daily Digital Out of Home	CAMBRIDGE, MA - April 29, 2008 – NSR today announced the release of its market research and forecast report: Global Market for Digital Signage. Focused exclusively on networks consisting of digital displays used for third party advertising, the report provides a study of the major verticals served by these networks across all regions of the world. Data from over 200 companies forms a core of the research, and the report provides Excel models that allow operators and advertisers to calculate their return on investment (ROI) for Digital Signage networks. Digital Signage networks have evolved from offshoots of business television to corporate marketing mechanisms to an advertising medium today, which leading international advertisers are paying serious attention to for reaching customers as they spend more time away from, and indeed avoiding, mainstream media. (Read Complete Article)
Lack Of Audience Metrics Won't Hold Back The Growth Of Digital Signage September, 2008	Market Insight	The growth forecasts for digital continue to defy the general downward trend in the media industry - the latest figures put media spend for US digital signage at $2.25 billion by 2011. According to the opinion makers, this growth is being driven by the emergence of a medium that finally gives advertisers the kind of direct and measurable ROI that has the power to draw-in media spend from many other less accountable mediums. (Read Complete Article)
Traditional Cost per Impression and Nielsen Ratings Are they destined for a display at the Smithsonian? Dr. Byron Farquer, April, 2008	Digital Signage Forum	Digital Captive Audience Networks (viewing systems at the point of sale, or point of influence) are designed to contain highly focused ads directed at a pre-screened group of consumers. The act of screening is consumer- directed in that the consumer patronizes certain locations for certain needs at their time of highest influence. Auto repair customers are most receptive and ready to buy automotive related products and services while waiting for auto repair services as opposed to general channel surfing at dinnertime. (Read Complete Article)
Selling Your Ad Based Network Effectively	Adcintricity	This presentation was delivered by Rob Gorrie, President of Adcintricity at the 2008 Digital Signage Expo. (Download PDF File)
In-Store Spending Is Fastest Growing Medium by Thom Forbes, September, 2007	Ad Age	A new study by Deloitte Consulting says that retailers and package-goods marketers have doubled their expenditures in "shopper marketing" during the past three years alone, making its compound annual growth even faster than Internet advertising. (Read Complete Article)
Research Shows 20% Sales Uplift From Digital Signage Network June, 2nd 2008	AKA.Tv	Research results from Prime Digital Media and Sigma, owners of the Wellbeing digital signage network in Australian pharmacies, are reporting an effective 20% sales increase for products promoted through the channel. The results are based on a month long research study carried out by Galaxy Research and Sigma audited point-of-sale data. The pharmacies selected to carry out the research were spread geographically across Australia - and no additional point-of-sale promotions or catalogues were placed in the pharmacies while the research was being undertaken. (Read Complete Article)