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Dynamic Digital Signage Trends
December 2004
Written by: Alan Trzuskoski
Dynamic digital signage is a new industry with explosive growth potential. It is also known as dynamic billboards, or e-signage. Dynamic digital signage is an electronic display used to post a static or changing message. This concept can be used for captive audience advertising, narrowcasting, and broadcasting. Posted messages range from national product advertising to local happenings and even political events. Dynamic digital signage can be found in mass transit stations, bars, banks, grocery stores, urinals and anywhere a captive audience is found. The possibilities are endless!
There are two key technological factors driving this industry?s growth. The first factor is the falling cost of high resolution, thin, large screen displays. The second factor is the easy and inexpensive access to a high-speed Internet backbone. This comes at a time when existing modes of advertising are oversaturated. Advertisers are therefore looking for new ways to reach consumers.
One of this industry?s current hooks is the new and ?cool? effect plasma screens offer. However, even after the ?cool? factor wears off, this form of advertising will still replace conventional billboards. As technology prices continue to fall there are several factors that make dynamic billboards more attractive than conventional ones. Distribution is both quick and easy. An advertisement can be delivered locally, nationally, and even internationally; instantly from one location. Conventional billboards require printing, posting, and transit time. Another benefit of digital signage is its ability to deliver an almost unlimited number of advertisements in the same amount of ?real-estate? where conventional billboard delivered only a few.
Technology is a tricky thing. It has been the impetus for this movement, but what digital signage looks like today is not what it will look like 20, 50 or 100 years from now. Only the best science fiction writers can anticipate that. The best model of how this may unfold is the historic example of Gugliemo Marconi. Because of his pioneering work in radio waves, he is considered to be the ?Father of Radio?. When he discovered the ability to transmit signals across a room without a wire, he filed for a wireless telegraph patent. He was applying a new technology to an established mode of communication. However, he had no idea that his new technology would change the world and make the telegraph obsolete. His research paved the way for broadcast radio, television, cellular telephones, and wireless Internet access.
Although the potential of this industry has begun to be recognized, the battle for position is currently being waged on a technological front. According to the Marconi example I believe this model is flawed. The technology will change, but control of the ?real-estate? is the real value driver.
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