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Tuesday, March 20, 2007

Digital Signage - The Future of Advertising Technology

Digital signage is new and experimental way to reach people when they are outside of their homes. Usually, this kind of advertisement consists of colorful banners, videos with or without audio and simple text messages that are displayed on electronic screens, displaying different advertisements at different times toward target audiences. Although Digital signage does initially cost more than the traditional television, radio, or old fashioned word of mouth advertising, it has been proven to have a greater return on the original investment. A firm could also choose to use more Dynamic digital signage which includes high definition resolution, 3D environments, and impressive audio tools to heighten the quality of ads. These signs are more effective because they are flashy and can grab people's attention easily from across a crowded mall.

Many companies are now trying to develop digital signage software to keep up with the changing advertising world. The goal is to create cutting edge software that will attract broader audiences for whatever products or information a firm is trying to promote.

Plasma screens and LCD displays are used right now in order to do a variety of things. They can easily broadcast information, link advertising of third party companies that are affiliated with a certain company, enhance a customer's experience at a certain store or restaurant. Many restaurants now are using digital signage in order to reduce wait times by displaying menu demonstrations in order to allow people more time to decide before they order. It can also influence the behavior of a customer by displaying commands. The post office has adopted this type of signage because it easily directs a person toward automated stamp and mailing machines which shortens the line for other customers. Nike now uses video advertising in their stores as well in order to provide and build back story for their brand.

But the Digital signage solution still has many issues that are making firms hesitant to switch to it. For one, the initial investment would be staggering for large restaurants like McDonald's or any other chain restaurant. Since it's relatively new, it hasn't been widely accepted by advertisers to be, hands down, better than television or newspaper ads. Plus, the technology required to run these screens are rather complicated, making it more likely for things to break, causing down-time.

Digital signage is a revolutionary technique in advertising that will eventually take over traditional ways after it becomes more readily available at a reasonable cost. Look out consumers.

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