BrightSign has seen its digital signage players used by the Selfridges Oxford Street branch to add a further dimension to its window displays
It seems that you cannot go anywhere without seeing some sort of digital signage application. Whether it is shopping in the town centre, sitting at a train station, or cheering on your local football team, it is more than likely that you will be accompanied by some form of digital-based signage.
It is no real surprise that the popularity of this form of signage has grown to such great levels, with digital advertising now the first choice of many brands and marketers around the world. And this has not gone unnoticed by companies in the sign industry with many having already branched out into the market in order to take advantage of the work available.
Despite championing digital signage, AOPEN says a mixture of digital and print technology is favoured by marketers
However, it is important to remember that you cannot just simply diversify into digital signage without planning the move properly. With this in mind, what should sign companies consider before jumping on the digital signage bandwagon?
Great position
One company that is well placed to advise on this area is BrightSign, a supplier of digital signage players. Pierre Gillet, vice president of sales in Europe, the Middle East and Africa, says the market is growing rapidly and Bright-Sign has felt the benefits from this.
He explains: “Digital signage is growing rapidly. Major industry events like DSE in the US and ISE in Europe are consistently reporting higher visitor and exhibitor numbers. BrightSign is seeing strong growth and expanded interest in its product lines.”
Gillet goes on to say that due to the level of demand in the market, those that do opt to diversify into the sector can look forward to a number of advantages.
He continues: “At the entry level, repurposing existing print sign artwork for delivery on screen is straight-forward. However, the real opportunity is for sign companies to engage with their customers and help them grow their businesses through truly effective use of screen-based signage.
Pierre Gillet, vice president of sales in Europe, the Middle East and Africa at BrightSign, says sign companies are in a ‘great position’ to diversify into digital signage
“Using video, integrating with social media, managing content to appeal to different audiences throughout the trading day, integrating broadcast content are just some of the options sign companies that fully embrace digital signage technology can bring to their customers. With 4K technology emerging, screen images are fully able to match the quality of even the best printed images, for premium applications in the fashion industry, for example.”
Gillet believes sign companies are well placed to move into the market but should consider a number of points before doing so: “Sign companies are in a great position to diversify into this market as they already have strong customer relationships and an under-standing of how to develop content that works. At the entry level, they need training in how to take this content onto screens effectively.
Sign companies are in a great position to diversify into this market as they already have strong customer relationships and an understanding of how to develop content that works”
“They should then build on this and develop skills in new forms of content such as video and social media. They should explore the opportunities that interactivity present, both directly through the screens and through devices like smartphones and tablets.”
Gillet is keen to explain how BrightSign can assist companies considering diversifying. He says the firm sees supporting companies that are new to the sector as, ‘central to its mission’. With this in mind, he highlights BrightAuthor, a PC software application free to BrightSign customers that can create, publish and manage BrightSign presentations
He continues: “Using BrightAuthor, sign companies can take content in a range of media formats and quickly and easily deliver it on screen. Content from a number of sources can be presented simultaneously, and scheduled to appear depending on the time of day and other factors.
“In the latest version, users can ‘drag and drop’ content onto video walls, while the software handles screen synchronisation automatically.
“It also provides the ability to preview signage presentations so the author can see exactly how they will appear on screen prior to publishing the presentation.”
Healthy mix
Elsewhere, digital signage hardware solutions provider AOPEN has also witnessed an increased demand for products due to the market’s development. Gabriëlle Offringa, marketing manager for Europe, says that although digital is proving popular at present, a mixture of print and digital technology is often seen as the best approach.
She explains: “Digital does give companies the tools to adjust content on demand, manage it from a single point of contact, gather analytics of user behaviour, seek interaction with consumers and it allows you to link to other communication platforms such as social media or loyalty programs for example, but it doesn’t mean it replaces all print. There needs to be a complimentary mix between digital and print elements.”
A manikin that can change its look every ten seconds: BrightSign has seen its digital signage players used in a variety of innovative ways by customers
Considering the market in its current form, Offringa says AOPEN has been able to identify a number of ongoing trends that will help develop the market further and open the sector up to diversifying companies as time goes on.
She explains: “Digital signage will really see a transformation as the demand for smart communications solutions to support multi-channel marketing strategies will grow. That means that there will be a shift to where digital signage will be installed and by whom.
“The responsibility will slowly turn into the hands of the marketer, who has in essence always been responsible for communications. They need to be able to work with digital signage, therefore the integration of design and functionality will become more and more important.”
Offringa goes on to say that in terms of diversification, AOPEN can assist companies considering entering the market—not just by supply materials and equipment but also by offering its expertise in the market. The firm has more than 17 years’ experience in IT hardware manufacturing and is well placed to lend a hand with such expansion projects.
She continues: “We now use our expertise and technology to transform highly technical products into easy-to-use, accessible digital communications solutions to support integrators, partners, and end-customers.
“The Retail Evolution Lab is one of AOPEN’s latest initiatives. We strive to give customers and partners the tools to ride the wave of digital communications in-store to strengthen the retail strategy in a competitive landscape.
“Rather than fighting against online, AOPEN encourages to embrace technology transformation. This is where design and technology meet; AOPEN demonstrates this coherence via the Retail Evolution Lab.
O Factoid: A recent report by research and consulting company MarketsandMarkets predicts that the international digital signage market will be worth almost $14.9bn (£9bn) by 2020. The report suggests that the market will experience a compound annual growth rate of 8.94 percent from 2014 to 2020. O
“Customers can now experience the seamless integration of digital and design in an environment that is set-up for research and development. Customers looking for a digital communications solution are welcome to visit the lab and test different strategies in the research and development room.”
Developing technology
This call for new technology has also been witnessed by Nearly New AV (NNAV), a company that buys and sells used audio visual equipment. Stuart Holmes, chief executive officer of parent company PSCo, says NNAV was created to help cater for an increased demand for new digital equipment, and this call for such kit shows no sign of stopping.
He explains: “We work on the corporate, broadcast and retail avenues, which all operate in digital signage environments. We are seeing more of the product we supply going into signage applications through those different verticals. Digital signage is, without a shadow of a doubt, the fastest growing sector for us.”
AOPEN supplies a range of equipment for the digital signage sector, including point-of-sale systems that double as shelf-talkers and interactive catalogues
Holmes says this increase in demand for kit is down to the opening up of newly discovered markets within the digital signage sector. He believes this exploitation of previously untouched sectors shows just how much potential lies in the market.
He continues: “What’s clearly happening through other verticals is new markets are being created by large manufacturers. Three years ago, Samsung said it would triple its business. People said it could not be done as business was not there, but Samsung went and spoke to people about the benefits of going digital to create this new business.
“Samsung’s growth is way beyond any expectations; they’ve created new markets where signage hasn’t been used or has been used but not in digital form. They’ve gone out and created a digital market and people have responded by investing in digital.”
With diversification in mind, Holmes is keen to highlight a number of important factors: “Keeping up with the technology is the number one thing to focus on if moving into digital signage. Keeping up with the technology will be absolutely key for us over the coming years.
Keeping up with the technology is the number one thing to focus on if moving into digital signage”
“Relationships and building partnerships with clients will also be crucial. You have to have the right supplier relationships in place to complement the business areas you are moving into, or it could prove to be a very expensive exercise getting into digital. Everyone needs a supplier network in order to bring a project together. The most successful people in signage have the right partnerships in place to deliver good return on investment for their clients.”
With plenty of work available in the digital signage market, it is safe to say that the sector is a genuine diversification option for sign companies. However, as with every new market, considerable planning should go into any move before diving head first into new work. Maybe it is time for your company to take to the screen with a digital move of its own.
Recurring revenue streams
Interactive display systems developer MultiTouch has reported plenty of demand for its digital signage solutions. Hannu Anttila, vice president of business development, says the firm’s interactive technology allows companies to ‘leapfrog’ the competition.
MultiTouch claims its interactive digital signage technology is proving popular
He explains: “Digital signage opens the possibilities for recurring revenue streams to keep content up to date and manage the signage system. Our MultiTaction technology combines unlimited interaction capabilities with unparalleled responsiveness and scalability.
“MultiTouch allows companies to leapfrog current one way push based digital signage systems by offering interactivity. Our MultiTaction Cell interactive displays allow unparalleled ways to engage with individual customers and attract larger audiences.”
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