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Digital Signage Reinvents Out-of-Home Advertising

Digital signage has come along way since the days of dot matrix display boards. Its dynamic look catches the eyes of consumer traffic and helps drive sales volume. Compared with traditional print media, digital signage practically becomes its own new medium.

Digital signage industry pioneer John Eisenhauer was interviewed recently and agrees with this premise. Eisenhauer, founder of Mercury Online Solutions, says that the industry's success results from the networks that go along with a digital signage solution. They allow two-way communication between the display and the computer with the administration software. Sensors can also be installed, allowing content to respond when consumers pass by. This, Eisenhauer says, is what sets digital signage apart from traditional media.

The success of the digital signage industry is benefiting independent digital signage solutions providers. Mr. Eisenhauer sold his Mercury Online Solutions, which he founded in 1996, to 3M for an undisclosed sum. His experience in the signage industry is extremely valued, and as such, John was retained by 3M as a consultant until recently. This kind of thing is very common today as the industry begins to consolidate. In most industries, consolidation is a sign that the industry has peaked, and has become a commodity of sorts. This is not at all the case with the digital signage industry, where innovation is evident and new start-ups emerge faster than ever before.

Eisenhauer was also called in by New Zealand firm OpenEye Displays recently. This was a smart move on OpenEye's part. OpenEye recently installed digital signage solutions in Regency Duty Free and Progressive; two of New Zealand's leading supermarkets looking to get the edge. The technology enables content about grocery products to be shown on a digital screen and to be changed or updated using a computer network.

So far, Eisenhauer says, the most modern and advanced digital signage solutions are among those set up in the United Kingdom, Scandinavia, and Spain. Studies have shown that people there spend a great deal of time out of their home and in indoors in public areas.

The greatest interest in digital signage today is from the retail industry, although it does have other uses in healthcare, education, and other displays of information. Advertisers and Plasma/LCD display manufacturers also have a vested interest in the industry and are working hard to get in on the action.

The industry's growth is likely related to the increase of purchase decisions that are made at the point of purchase. This year, the figure sits at 70%, up 20% from last year. This growth has increased the need and demand for in-store product signage. The problem facing the industry today is the difficulty in coming up with a business model where non-advertising content is paid for. Eisenhauer believes that this will come through sponsorship.

Thanks to the booming digital signage industry, Eisenhauer is "in a position, without disclosing figures - I don't have to work and I certainly don't need cash to pay for my children's education or my house or those sorts of things."

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