Dubai: Monetising digital technologies without alienating the online community is a poisoned chalice for the technology giants of Silicon Valley. Facebook went about it openly with an IPO whilst Reddit is being careful not to ‘sell out’ since users have already expressed concerns about the authenticity of ad-based content.
This is the same challenge for the digital signage industry, now that its technology is being adapted for digital out-of-home advertising (DOOH).
Rather than assuming DOOH is an amplification of digital signage, my argument is that the changes in content and technological innovation has actually created a very separate industry controlled by very different stakeholders. DOOH is as different from digital signage as Facebook is compared with, say, a newspaper. Both are media platforms that can, and are, integrated with one another but serve a very different purpose.
The history of digital signage dates back to the 1970s when stores would use a television to promote offers and communicate navigation. At the time, the digital signs were broadcast through a closed circuit and everything displayed had to be pre-recorded.
An important factor contributing to increased usage of digital signage was the drop in the price of LCD and plasma screens. Consequently, businesses like hotels, nightclubs and cinemas started replacing their conventional signage with digital. Then, along came the Internet and changed everything with real-time content, which was the catalyst for a digital out-of-home industry to explore more creative ways of targeting an already-engaged audience.
And herein lies the problem, much like the problems faced by the social media companies — how can you keep audience engaged while selling to them at the same time? The answer revolves around understanding the platforms’ intended purpose.
Take for example, Samsung. Its “Super Selfie” campaign on Shaikh Zayed Road was purpose-built and encourages Samsung Facebook fans to upload their personal photos onto social media. The most shared ‘selfies’ are streamed onto the screen via a specially designed billboard that has the digital capabilities to display content generated by consumers.
Since these are used solely for advertising, manufacturers can develop new technologies fit for the brief. They can also use measurement tools such as facial recognition built into the digital display unit which records how many consumers engaged with the advert and what their gender or age might be. This, in turn, provides predictive analytics, which allows for more relevant and targeted content.
But when we consider digital signage, the primary purpose is very different and advertising must play second-fiddle to the screen’s reason for existence, whether that is to communicate daily headlines, stock market data, community updates or travel timetables.
Media planners can still be sure they have the undivided attention of a guaranteed audience, which compared with more traditional channels — is already a huge advantage. But they cannot hijack the editorial content — in a similar way that the content of a newspaper is equally objective — for risk of ‘selling-out’.
As a consequence digital signage is controlled and managed in a very different way to DOOH, making it a very different industry. When media planners and owners realise this, it will help ensure both mediums can enjoy profitable returns without alienating a guaranteed and engaged audience.
— The writer is CEO, Elevision
