The Audience Metrics Guidelines that the Out-of-home Video Advertising Bureau has been working on for the past year are now ratified and will be presented at the OVAB’s Digital Summit on October 29 in New York. The event will bring together major players on Madison Avenue with members of OVAB, which today include some of the largest digital out-of-home networks and vendors in North America.

Although I was involved in the reviewing of the Guidelines and provided some input as well, I cannot disclose any details of the document until the official presentation. Essentially it is a set of principles long-used in mainstream media buying that are applied to standardize the DOOH ad space and make it easy to plan and buy. The result is a simple formula to calculate the audience metrics in a way that would make sense to media buyers and their clients. The ultimate goal of OVAB is to turn DOOH from an alternative media option, an innovation, into a commodity, i.e., a line item on the media plan, with appropriate budgets allocated ahead of time, and not as an afterthought.

As Suzanne Alecia, President of OVAB, explained, the Guidelines are not the actual standards yet, but once adopted by members, they will lay the foundation for ‘best practices’, which will then gradually evolve into standards by way of wide-spread usage by the selling and the buying parties.

It is interesting, though, that the OVAB event comes at a time when a financial crisis urges advertisers to look away from overpriced and not-so-accountable TV and into more pragmatic and sales-oriented media like DOOH. Before, we have seen a lot of upward pressure from networks trying to reach out to advertisers through the barricades of reluctant agencies. Today, as several sources indicate, the pressure on the agencies is also being exerted from above, from the advertisers themselves, who increasingly instruct agencies to explore the digital out-of-home opportunities and report back.

Against this background, the OVAB Digital Summit comes in handy, as a facilitator of relationship between sellers of the new space and potential buyers.

Media Post’s Digital Outsider newsletter shed some light on the forthcoming event: “…the main reason for Alecia’s visit with the Digital Outsider was to update us on plans for OVAB’s Oct. 29 Digital Summit, a day-long event in New York designed to help marketers, and agency media planning and buying executives, understand the state of out-of-home video technologies and advertising issues.

The day will be structured around three key issues: Creative, research and planning, and will feature a variety of case studies from some recent successful out-of-home video ad campaigns. The day caps off with a panel of client-side executives sharing their views, hopes and aspirations for out-of-home video, as well as any pitfalls they’ve encountered along the way.

But the highlight of the summit will likely be the official release of the just ratified OVAB guidelines for audience metrics and measurement. Draft versions of the guidelines already are being circulated among the OVAB membership, as well as key stakeholders in the advertising and research community, and Alecia says they’ve already gotten the tacit blessing of key bodies like the Media Rating Council and the Advertising Research Foundation.”

Trade show and conference panels have addressed everything from why a system needs to be in place to what emerging technology is on the horizon. The excitement and change the digital media and out-of-home (OOH) video marketplace has seen recently can leave newcomers in a tailspin. Providers are showcasing more and more forthcoming solutions that allow businesses to cater ads based on age, gender, ethnicity, and proximity.

Although digital signage has been increasingly adopted across all industries and has proven to be very influential and effective, the lack of real time audience measurement has curtailed the industry’s ability to realize full potential. There are two layers of audience measurement working in synchrony. At the provider level, metrics are needed to show that a particular solution is effective and meeting the clients’ goals and objectives. On a broader level, the industry needs to demonstrate that the medium is not only powerful, but clearly surpasses the effectiveness of other less targeted and less customizable mediums.

The industry needs performance metrics on several fronts, most notably proof-of ad delivery, audience measurement, and the marketer’s Holy Grail—sales uplift. But the idea behind this approach goes beyond providing accountability to media buyers. Measurement also assures that viewers are receiving relevant messages at opportune times. If done well, customized ads save customer’s time, bringing added convenience to the shopping experience. The triple bull’s-eye is to provide evidence that content was played for the right audience at the right time, offer consumers only the information that is specific to their needs and interests, and establish an accepted ROI calculation.

By Louie Hollmeyer, VP of Marketing, STRATACACHE

The need for metrics has been a hot topic within the digital signage industry. Trade show and conference panels have addressed everything from why a system needs to be in place to what emerging technology is on the horizon. The excitement and change the digital media and out-of-home (OOH) video marketplace has seen recently can leave newcomers in a tailspin. Providers are showcasing more and more forthcoming solutions that allow businesses to cater ads based on age, gender, ethnicity, and proximity.

Although digital signage has been increasingly adopted across all industries and has proven to be very influential and effective, the lack of real time audience measurement has curtailed the industry’s ability to realize full potential. There are two layers of audience measurement working in synchrony. At the provider level, metrics are needed to show that a particular solution is effective and meeting the clients’ goals and objectives. On a broader level, the industry needs to demonstrate that the medium is not only powerful, but clearly surpasses the effectiveness of other less targeted and less customizable mediums.

Trade media says metrics for digital signage that can be accepted by media buyers, are becoming a reality. Here is a brief overview of what the press has written on the subject in the past couple of months.

Nielsen is about to launch a new service that will provide monthly audience ratings for digital out-of-home networks in a format similar to that of TV ratings “pocketpieces” (booklets that you can fit into your pocket).

According to MediaWeek, “Nielsen has already issued its first report for Ideacast’s health club network. Sources confirmed other networks have also signed up for the service, among them Gas Station TV, Arena Media Networks and CBS Outernet.”

Katy Bachman, the author of the MediaWeek’s article, continues: “…standardized metrics could be a game changer for a medium advertisers find attractive but that lacks the metrics to give it a fair evaluation.”

“Measurement will bring some order to the whole medium,” said Jim Spaeth, president of Sequent Partners, a research consultancy hired by the Out-of-Home Video Advertising Bureau to write research standards to be released later this summer.

MediaWeek says Nielsen will issue reports free to agency clients, which it does with its cinema reports. For Ideacast, it takes the business to the next level. “Nielsen has a database of 30,000 planners and buyers, and they’re sending this to their entire database,” said Jason Brown, president, sales and marketing at Ideacast, which has already begun selling with the data. “Our business plan and internal projections are based [on these reports]. It’s now our currency.”

MediaPost wrote that, “… perhaps the most important aspect of the new pocketpieces will be Nielsen’s imprimatur, a stamp of approval that would provide legitimacy and authenticity for place-based networks calling on advertisers and agencies.”

Another advantage, according to Paul Lindsrom, Senior Vice President-Nielsen Strategic Media Research, would be “the ability to flow place-based TV audience estimates into media-planning software from firms such as Nielsen’s IMS unit, or various media and marketing mix modeling systems.

Lindstrom called the plan a “fairly simple, fairly straightforward approach” that would enable place-based TV networks to be planned and bought alongside traditional TV outlets, writes MediaPost.

MediaBuyerPlanner.com explains: “Whereas television and internet audience estimates are taken from consumer panels, Nielsen will gather data for the out-of-home video networks primarily from compiling and modeling third-party data, and combining that with Nielsen research conducted by telephone.”

MediaWeek says Nielsen already has competition in digital signage measurement: “While Nielsen is the first research firm to try to establish currency for the medium, it may not go unchallenged. Several other players, including Arbitron, Knowledge Networks, Edison Research, Peoplecount and MRI, as well as TruMedia and Quividi, have developed research and have worked with OVAB to develop guidelines.

“There are a lot of companies out there [looking to measure OOH video]—two companies may also work together,” said Suzanne Alecia, OVAB’s president. “Our guidelines are a rule book for any research provider to use,”” writes MediaWeek.

Advertising Age pointed out on June 23 that, “While out-of-home video advertising was estimated by PQ Media to take in $1.28 billion in spending in 2007, the emerging media sector did so with no standardized metrics for advertisers and agencies to buy it efficiently. The 18-month-old Out-of-Home Video Advertising Bureau is working with more than two dozen vendor and measurement partners (including Nielsen, Arbitron, Screenvision and CBS Outernet) to help create a universal measurement checklist for out-of-home media buyers. But even after the metrics receive official approval from the American Association of Advertisers and Agencies, they’re not likely to be employed until early 2009.”

My colleague Brian Dusho and I were part of several rounds of discussions of the OVAB’s Audience Metrics Guidelines, and I can testify that the document absorbed input from all stakeholders: the largest networks, research firms, technology providers, agencies and advertisers. Once endorsed by trade organizations and published, it will be a solid starting point for standardizing the digital signage ad space.

TBM - a business leader in the global digital signage arena - currently operates a network of over 1 000 plasma and TV screens across the country, creating a platform for advertisers to share their information with various sections of the population, depending on which audience-specific package is chosen.

Trendsetter in its field, TBM incorporates new technology that provides a basis for revolutionary new communication strategies. Advertisers can now create high-impact campaigns and deliver them virtually instantly via satellite to any of these screens across South Africa. Advertising screens within the TBM network include those at Johannesburg, Cape Town and Durban International Airports, airport lounges at these three airports, Absa banks, American Express, Rennies Bank, Virgin Active, golf clubs, advertising agencies and the Johannesburg Metro Police Department.

TBM also operates “private” television stations for government, NGOs and corporate clients, which can be used for various applications including marketing and promotions, staff training, brand building, product/service information, company communication, promotions, competitive advantage, social responsibility, sponsor extensions and strategic alliances.

In addition, TBM also delivers DVD quality full-motion content to plasma screens located within closed networks, acting as a telecommunications service provider for institutions requiring information distribution to both staff and clients. These are known as hybrid networks, and TBM currently operates such a network for Cell C in over 90 retail centres across the country. By the end of 2006, this figure will have grown substantially. During business hours, the network is used for communicating with the clients in Cell C call centres, stores and franchises.

“Currently, South Africa is lagging behind the international market with regards to digital signage,” says Pierre van der Hoven, CEO of TBM. “Marketers need to start realising that Out-of-Home TV is the way of the future - traditional media has become fragmentised, and has lost the power it once commanded.”

Research shows that digital media is four times more effective than conventional television advertising. Significantly, digital media is also seven times more effective than conventional print media, and receive ten times the eye contact of static signage.

“Studies also show that 75% of all purchasing decisions are made in-store at the point of sale, and that 85% of retail customers say that multi-media displays make a difference to where they shop,” van der Hoven points out.

According to recent studies by New York research company Weinstock Media Analysis, who defines digital signage as ’server-based advertising over networked video displays’, technology sales to this market in North America totalled $US972-million in 2003 and will rise to $US2.23-billion in 2008. It is predicted that this region will have over 540 000 screens at more than 76 000 sites by 2009.

In the US, the broadcast network of PRN - the largest TV network in the retail environment - reaches an audience of over 150 million shoppers every week in over 5 500 stores countrywide. It delivers information and entertainment-packed programming in stores where customers spend over US$256-billion every year.

Advertisers in the UK have also cottoned on to this highly effective marketing medium, and over 57 000 networked screens are operational in public venues. This figure has made an astounding leap from only 10 000 in 2004, according to the Samsung Screen Survey of last year. Apart from producing a value-adding experience for mall visitors, screens have also been placed in government buildings, banks, hair salons and student unions.

Three years ago, Tesco TV rolled out 5 000 screens in 100 Tesco stores, which reach 14 million shoppers a week. ASDA, the other major supermarket chain in the UK, has completed a six-month pilot in two of its major stores. Results of the Spar grocery trial were also published in 2005, and showed increased sales of between 10% and 40% for targeted products.

Besides Tesco TV, other success stories in the UK include Toni & Guy TV, with 230 salons in Europe and expanding across Asia; the Bullring Shopping Centre in Birmingham, which provides information through plasma screens and kiosks; Abbey National, a dual network in 800 stores that does brand advertising and staff training; and the Camelot network, which promotes the national lottery in 500 supermarket and sales outlets.

If South Africa is set to follow North American and European trends - and the signs are already beginning to show - then astute marketers will start to place emphasis on extracting the maximum value from ad-spend, with the added benefit of avoiding a ‘blanket’ marketing approach, opting rather for one that is focused and targets specific audiences.

“Digital screens with moving images are much more effective than static point-of-purchase material,” notes van der Hoven.

“Even though advertisers spend millions getting shoppers in stores, more than half of those shoppers leave empty-handed because static advertising is unreliable, invisible and difficult to manage. In fact, the Point of Purchase Advertising Institute (POPAI) estimates that 30% to 40% of all point-of-purchase advertising is wasted as a result of incorrect and non-displays.”

TBM is poised to play a pivotal role in developing this market in South Africa, and is currently the only South African company that provides all the necessary elements for an OHTV network. “We see a boom coming for the digital signage market in this country, and we’re prepared,” says van der Hoven. “Marketers should be too.”

The UK chapter of POPAI, in cooperation with the Imperative Group, released a report on the use of digital signage and other forms of digital media at retail. I just had the chance to read the document (formally titled Guide to Digital Media in Retail, though they seem to favor the unpronounceable G2DMiR moniker), and thought I make a few comments to anybody who has been on the fence about spending $200 (free for POPAI UK members) on yet another research report.

First of all, at only 26 pages it’s a quick read, which is not a bad thing at all. Having read more than my fair share of reports over the last few years, my estimate is that about 75% of the stuff in there is often hype. The G2DMiR is largely hype-free and statistic-rich. Instead of taking the position of infallible research company, they also took the very nice step (in my opinion) of soliciting case studies and anecdotes from numerous industry experts (at companies including Dunnhumby, Retail Week, Spar, and The Co-operative Group), which gives them an extra degree of accountability (or, they’re all a bunch of liars, though I suppose that’s not too likely

So, for example, I could tell you that “I’ve heard that some retailers see a 20% in sales of advertised products, with a 3-5% lift on the whole category”. But it wouldn’t be very verifiable, and in fact I’d probably forget where I first heard the statistic so you’d be out of luck trying to follow up on it yourself. Or, you could read that very stat in the report, as written by Susan Beetlestone at the Co-operative Group, who manages Europe’s largest digital screen network. Need to cite something to an investor or advertiser? You now have a company name and responsible party.

So should you buy it? I’d say that depends on what your business is, and how far along you are. If you are focused on the retail vertical and are concerned about things like sales uplift and retail case studies, or if you want some details on what the UK’s top companies think about loop length, playback frequency and using audio in your content, it’s easily worth the money.

The report analyzes the complex supply chain of the digital signage industry and assesses the market opportunities for various types of players in this industry. It focuses on the outdoor advertising market that is gearing to provide digital signage solutions. The market drivers, trends and challenges for the digital signage industry have been analyzed. Further, it highlights the positioning and strategies of top global digital signage players - CBS Outdoor, Lamar, Clear Channel and JCDecaux.

The shift of advertising expenditure from traditional media like television, radio and newspapers to outdoor is an indicator that digital signage will witness a major growth in the near future. However, the major factors that is going to drive the growth of digital signage in the near future will be lowering of the capital expenditure on signage devices and also the advancements in instant downloading of the new signs on the display panel.

The outdoor industry’s move to digital signage means higher quality, better networking, faster time to market, and more efficient customer targeting.

Lamar Advertising is considered the most aggressive outdoor company in transforming to digital. But over the past few months, CBS has also taken on a more aggressive stance with regard to digital billboards. Digital signage has the power to accelerate revenue and cash flow growth of these signage companies. As the digital rollout moves into the second stage with advancements in technology, outdoor advertisers are likely to capture a larger portion of advertising dollars.

The report broadly includes the following

1. Global Outdoor Advertising Market

2. Digital Signage: An Overview

2.1 An Introduction to Digital Signage

2.2 Market Overview

2.3 Markets for Digital Signage

3. Market Trends

4. Growth Drivers

5. Supply Chain Analysis: Digital Signage Market

6. Competitive Landscape: Major players in Digital Signage

6.1 Clear Channel Outdoor Holdings (CCO)

6.2 JCDecaux

6.3 CBS Outdoor

6.4 Lamar Advertising

7. Market Opportunities

8. New Entrants to the Industry: Entry Barriers

9. Major Challenges

10. Market Forecast

Figures

Global Outdoor Advertising Expenditure: 2001-2006

Global Advertising Expenditure by Media: 2006

Global Digital Signage Market Size: 2005 & 2006

Total Number of Mega Cities: Current and Forecast (2015)

Global Air Passenger Traffic: 2003-2006 & 2015 (Forecast)

Ad spend by Media: Percentage of Total Ad Spend

Outdoor Advertising Revenue: Comparison of Major Players

Tables

Top 20 Outdoor Markets by Ad Spend

Impact of new technology on different media

Potential number of sites for digital display deployment

Industry characteristics that restrict entry of new players

TAMPA, Fla. – Venco Electronica, a Spanish electronics provider, has integrated TruMedia’s iCapture audience measurement solution into its digital signage screens.

Venco’s DS for Digital Screens division produces turnkey digital signage solutions for audience measurement and communication. Venco screens are the first to include a fully integrated audience measurement solution with built-in iCapture Camera and SmartBox. Embedded screens are available as 46-inch and 52-inch hi-definition LCD screens as well as 46-inch, 52-inch and 65-inch totems.

“We believe that the success of digital signage hinges on the ability to accurately measure ROI and effectively target advertising to the viewing audience,” said Joan Clotet, managing director, Venco.