Paul Flanigan is a relative newcomer to the digital signage blogging community, but almost immediately started writing one of the more interesting ones, called Experiate.He runs the in-store screen network for Best Buy and spends his time thinking (and some spare time writing) about content and the impact of screens. Flanigan has a lengthy post this morning raising questions about the timing and merits of audience measurement, combining his own thoughts with quotes cherry-picked from a bunch of industry smarty-pants.At a time when technology and content are finally developing a synergy that enhances the experience, is it truly imperative that we start measuring right away? This industry is growing so fast that any statistical measurement done today could be obsolete within a few years, if not a few months. Network operators and venues are in no hurry to become metric compliant; media planners and buyers don’t fully understand the medium yet; agencies are still working toward a full understanding of creative and compelling communication techniques for OOH; OVAB is trying to enforce compliance with only a few dozen members; and there are other companies out there with different and perhaps stronger methods for measurement and definition. This feels like I should grade my daughter on calculus while she’s still learning to count to 10. Good stuff, and very relevant, compelling questions. I agree with Paul that the argument for audience measurement as it is now done is flawed, particularly as it relates to retail networks that are more about sales impact and shopper experience. But for full-on ad networks, SOMETHING, ANYTHING is needed to at least start herding the cats and creating some commonality in how networks sell themselves.The elephant in the room, though, when measurement results come in is the discussion around how many people are actually watching versus the raw numbers that have been used to tout audience size. Well worth a read ...
David Verklin, former CEO of Aegis Media and now CEO of Canoe Ventures, had some interesting things to say about the future of television during a keynote address at an industry event in New York a few weeks ago. On subjects like addressability, creative versioning and media targeting, Verklin made it a point to reference the out-of-home industry, which counts those abilities as key advantages over today's broadcast media.
So, what did he say?
Here's what Verklin told the audience during his keynote at the conference:
Another bright spot in the business is the outdoor business. You know, a picture on a stick in the age of TiVo is actually a pretty darn good idea. In many cases, the out of home business... Every one is under pressure. Don't get me wrong. I'm not here to paint a rosy picture of the American media business, but outdoor is doing surprisingly well."
Image credit: Rob DiCaterino
He even mentioned OVAB:
"Also, pay attention to something called the OVAB. The [Out-of-home] Video Advertising Bureau, a new trade association that has been started in the last two years to track the delivery of out of home video advertising. Think about it. Everywhere you go in America you see a flat screen. You see a flat screen in the airport. You see flat screens in elevators all the time. We have seen an industry emerge in America, the OVAB... it is actually a growth spot in the American economy.
Why is Verklin paying so much attention to OOH?
"I think it actually does relate to Canoe because it's about video. Isn't it? It's not about television. It's not about television. Video is coming in all kinds of forms. We're seeing video obviously being delivered on the web. We're seeing video in television."
Verklin’s comments are in line with what Donna Speciale, President of Investment and Activation at MediaVest USA, said during an interview in September:
"It will eventually end up being a video choice. We need to stop thinking it is TV, OOH or digital."
Part of the ramification for a "video" buy vs. TV vs. OOH vs. digital is that of budget allocation. If and when that materializes, the pot for networks to dip into will likely get bigger. Much bigger. And that should pave the way for stronger growth and sustained health.
Bill's comments:
Reallocation of funds is happening today, so Christie's observations are very much on target. Don't believe me? Just ask the guys at SeeSaw Networks or Adcentricity where their clients are taking money from to dump into digital out-of-home ads. Funding for DOOH media like flat-screen LCD advertising in airports and roadside LED billboards has to come from somewhere. And as we've noted before, the budgets for TV, radio and other broadcast media are so gigantically huge that even allocating a tiny fraction of those media buys to below-the-line channels can have a big impact (both percentage wise and dollar wise) for smaller markets like ours.
Can the market for digital out-of-home media grow without taking revenue away from more traditional advertising options? Leave a comment and let us know. Click here to leave a comment What's WireSpring's Blog All About? WireSpring provides hardware, software and services for digital signage and kiosk projects. But our blog is a labor of love. Our posts cover everything from case studies to creative briefs, and are authored by some of the industry's most well-respected leaders.
Tuesday, April 14, 2009
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