YES – Chris Marjoram, managing director, IPM Any medium that increased its ad sales by as much as digital out-of-home in 2008 has to be considered a success. Digital will enable out-of-home to further increase its market share as it allows the advertiser to create a new relationship with the consumer. Digital can both inform and entertain, as well as deliver messages in real time, which wasn’t possible before. By enhancing standard outdoor plans with a digital element, we anticipate overall budgets will increase rather than shrink. Clearly, the economic downturn will slow the tremendous rate of investment in the medium, but digital will still offer advertisers more rounded solutions than before. Outdoor is now the most exciting medium to be in and digital is a key reason for this.

NO – Ivan Clark, director of digital and creative solutions, Kinetic Last year was undoubtedly the year of digital out-of-home and 2009 will again deliver big revenue increases to sales companies that invested wisely in the medium. However, it will only account for about 10% of out-of-home budgets. Although the capital’s commuter is well covered with digital on the transport network and roadside – with some notable exceptions – it’s too focused on London. You can’t reach a mass audience with digital out-of-home outside the M25. Research proving the increased impact of the medium has been scant. Sales directors have not delivered the required flexibility, while planners have been slow to exploit the potential. Additionally, creatives have not always fully understood the new mechanics.

YES – Tim Sapsford, managing director, Meridian Outdoor Exploring new digital developments in the out-of-home sector – and getting them right – was always going to involve some trial and error. In the past two years, we have seen rapid progress. Building on early successes like Transvision, clients can now access a significant portion of London Underground digitally with CBS’s Alive plant; central London’s busiest roads with JCDecaux and Clear Channel’s LED 48 sheets, as well as the major rail termini and shopping malls. Every study I’ve seen shows that screens improve consumers’ experience and brand perception, while driving impressive recall figures. My only disappointment with digital out-of-home is seeing it used in traditional two-week posting cycles. The medium offers ultimate flexibility and it’s crying out to be exploited.

NO – Arum Nixon, associate director outdoor, radio and press, MediaVest A few years on from the coming of the digital revolution in outdoor and the initial novelty is finally wearing off for consumers and advertisers alike. This is all part of a positive process as the market matures, but what does it leave us with? There have been success stories, predominantly in higher dwell-time environments – CBS’s ongoing £35m investment on the Underground being an example. But even here, we are still just scratching the surface of understanding the true value of the media and how best to maximise its potential. It is in roadside where digital outdoor is still finding its feet. There are still just a handful of digital sites, with the usual London myopia. There are some great examples of digital outdoor being used to its full potential. But we are still a long way off the level of understanding or critical mass to be able to plan and buy an effective national digital outdoor campaign. 

Ok, so there are usually two sides of every story and that just makes for good conversation. But, if you are in the industry, or know anything about advertising, you may have really noticed who said “Yes,” and who said “No.” If you are still not aware, or new to advertising; here’s the breakdown. The two “NO”s both come from 2 of the Top Ad Agencies in OOH/DOOH space,  while the two “Yes”s come from OOH/DOOH Media Asset Holders. And clearly, there is work to be done as the Agencies’ perspectives are not the most positive, this is not old news to most of us.

In plain English, here’s how this all works. Media Asset Holders (I have mentioned this term before here, so might as well explain now) are the ones who represent the networks/media assets, or owns these outright. These “Holders” present the media and assets to the Ad Agencies, whom represent the Brands, and also as the Buyers in this space. There are times where the Holders will go directly to the Brands themselves, but ultimately, the Ad Agencies bring in the “Big business” most of the time. A bit of “how this all works 101″ for those of you that are not familiar with this process/differences.  Anyway, it is interesting to see the clear differences / contrasts between the  opinions here. Is this because the Media Holders obviously have to have a bias point of view? Obviously positive perception helps. Or, is it that the Agencies still don’t get the medium or “protecting” the budgets? Maybe, some are still “traditionalist,” but they should Always “protect” the budgets with only the best intentions for the brands they represent. I think somewhere in the middle of the “Yes”s and “No”s is the real actual answer to the question: ”Is digital out-of-home meeting expectations?”

YES and NO – Christian, Chief Blabber Mouth, Justoutofhome.com

Yes: in the sense that 2008 was indeed a boon for the Digital Out-of-Home industry. Much of the technologies evolved at a rapid pace last year. Many networks were born, and existing ones continued on with their development and maturity. More importantly, the previous issues related to metrics and measurements; ROI, are finally starting to get figured out and certainly on the forefront at the present time. Interactivity has increased as well. The DOOH media overall is still at its infancy, but has excellent Potentials in the long-term.

No: In the sense that, the key word in the first answer is “potentials.” Critical aspects such as “metrics and measurements; ROI” has not been standardized yet, and potentially, never will be. In general though, these critical factors will get to a point where they are as solid as they can be, as they are in the “competing” mediums as well, thus making the buy process increasingly more logical, accurate, and sensible. It is also agreeable that the issues of “creatives” or content strategies have not reach their optimal levels. There are only a few “experts” in the industry whom understands how to create effective content for the Digitial Out-of-Home medium, and safe to say, these few individuals / companies will lead the charge on this front and experience a sudden increase in growth when the issue of content really comes to the forefront. Lastly, I believe the Apex of the industry will be reach when Measurement, Content (as well as issues like placement, layout, etc.), and Interactivity are all combined together effectively. Mobile, and even, some online mediums are helping to set the basis in terms of providing Integration and Interactivity as we speak, but there remains much more experiments to do, and social, direct response, and touch/kiosk technologies will also help on this front as well.

In order to have “Expectations” on a media, one must have a solid idea on what the media actually is, in conjunction with the media having been matured almost fully itself. This question is like asking, “Is your 5 year old child meeting your Expectations in terms of what you are hoping for his or her life?” It is just too early to tell. But as stated before, DOOH has excellent potentials to become an undeniable media; especially if all involved parties do their parts and well. If not, yes, it certainly could become a “flavor of the month” media. But overall, there is enough of a basis that exists today for buyers to consider spending their budgets on DOOH if the audience opportunities and rates are right.

Link here for the ROM intro: http://www.mediatile.com/filebin/pdf/MTC_ROM_abstract.pdf

Again; Mr. Haynes’ “OVAB Guidelines for Dummies”  just in case you missed it.

So by today (3/2/09) most “industry insiders” know that Tesco TV, considered one of the  ”OGs” of Digital Out of Home, is indeed and officially shutting down. This is actually not “new” news, as this was foreseen by a few folks with the insight and knowledge on the matter. Not going into the journalistic detail here, as there are far better articles on this subject. What I will state is that there were couple of different reasons / theories on why the demise of Tesco TV occurred, but I read something that aligns with what I also and truly believe to be the reason for the destruction of this European DOOH monster: quality of content and placement. Yes, I’m back here to do my part to shed light on the importance of these two IMPORTANT factors; especially with content quality… AGAIN! Did I mention that the blog sixteen-nine.net is one of the blogs I personify with the most? Well, I did, and I do. Mr. Dave Haynes’ “Tesco shuts down retail TV, confirms crappy concepts don’t work” pretty much states what I would have and saved me some typing strength, so you should read it, amongst the other more “formal” articles on this subject. It’s really BIG news.. What really hit home was the following:

Bagging these big. mass footprint stores for ad or promotion networks would seem like a really great opportunity, but if the screen placement and content plan is flawed, and the capital costs to roll the thing out very large, it’s a very risky venture.

Indeed… It seems that many are still having a difficult time “multi-tasking” on these two issues, but realize that BOTH are just as important as IT stability / flexibility, dwell time, and measurability. In fact, I’ll go further in saying all 5 factors need to be strategized, planned, and executed in sync with each other; otherwise, you simply don’t have an appealing Digital Out-of-Home Network (Ad ones, or otherwise). Media holders: stop pitching your networks and “wares” for a sec; time to go through massive reviews of your networks! If it doesn’t seem up to par; go to the people / companies who will get your networks up to par. There are tons of ‘em on Twitter to start with. If not, you will simply be the next ones on the firing line. Ultimately, if your network is not thought out fully, what you will have is a “failure to communicate..;” to your audience that is…

Hi Suzanne! Also, sorry for how the freeze frame shows up! Talk to AdAge about that one.

Why did they hit so home for me? I have seen and dealt with the realities discussed in these articles everyday at my previous position. I struggled to think about where the core of all the issues lie for several days since I have read them (several times no less) and I finally believe it’s all connected to the simple theory of “DEMAND.”

“Demand” is a funny thing in the advertising and media industries. It can make a media the next “new” and “hot” thing in the media world with a “flick of a switch,” and all of a sudden, everyone is suddenly clamoring to learn and implement strategies and concepts attached to the media. When the “heat index” is up, there is less regard for whether a particular media has matured to the point where the core principles and goals of advertising & marketing are in place; issues such as “measurability,” effectiveness of reach, relevancy, and, yes, Return On Investment. With a few articles, press coverage, and some big early-adaptor ad buys /investments; the belief of “we Must include this media in our strategies and plans, because such and such are using this media right now, and if we don’t do the same; we will deemed less competitive or innovative…” starts to spread like a virus very quickly. In the past decade, we have seen this in the Online media sector, where the phenomenon I speak of occurred. But Online media may not be the best comparison, as the nature of the media and technologies with in that space aligned with the general principles and goal advertising and marketing very effectively and quickly. Simply put, I have yet to see a media that is as measurable and justifiable as Online media. Online media is so sophisticated that it has gotten to a point where people can actually even show “heat maps” in terms of determining what parts of the screen viewers are Really looking at, amongst other methods. From this, some may say, “well, I’m sold!, I’m gonna just dump all my efforts and budgets into the Online space, and call it a day..” If you say this; let me be very clear; You have NO business being in the fields of branding, marketing or advertising whether you are just starting out or have been in the industry for decades. I personally still see some flaws in Online media. Measurable and accountable? Certainly. The “end game”? Certainly not. In this sense, it’s all about intelligent budget allocation; not just focusing on a few “flavor of the week” medias.       

I haven’t wrote for a long time, but I have stated my personal belief in what I do couple of times, and it is my general principle and belief that “effective branding and advertising strategies / plans requires an Integrated approach in both the decision-maker / client-sides, as well as on the agency / media deliverer-sides.” My career might be fairly short so far, but I worked everyday with this principle in mind and I don’t know anything else. In this sense, I definitely see Out-of-home and Digital Out-of-home as viable medias to be included in a lot of strategies and plans. Has it matured fully?, especially compared to medias such as Broadcast Television (which may be Overtly matured), or Online (which still has much to innovate and grow)? The simple / quick answer is “No.” 

2008, as both the articles touched on, was a period of great evolution for the Out-of-home, and especially, the Digital Out-of-home industry. I know, I know; some companies have been around for decades, and been “leaders” for a long time; a term that seems to be used very loosely in most advertising / media / content delivery industries, as the David Haynes of Sixteen:Nine pointed out. But from what I know; and please correct me if I’m wrong, there has never been such a period as 2008 where so many different organizations within these industries decided to work together to tackle all the issues connected to the industry(ies). If this is so, then it is obvious that maturation as an industry is yet to be here, and as we all know; “Rome was not built in a day…,” or even a year. On the positive side, “why all this activity then?” We go back to the theory of “demand.” It is because there is “demand” that decision-makers are starting to see the relevance of the media and the right questions are being asked. It is also why there is such a feverish attempt these days at answering and resolving these questions; not just as a company, but as an industry.

So why does it seem that brands and agencies aren’t stampeding to Out of home and Digital Out of home right now? Well, I guess it’s partly reality, and partly just bad luck. In an incredibly challenging economy, marketing /  advertising budgets tend to be the first to get cut. I discussed this issue with Jon at Bonita Media, and let me state another belief of mine, which is “A bad economy is the Perfect time to actually raise the marketing / ad budgets.” This is because media costs become highly discounted with everything else around the world. The same budget in a good economy can take you a Lot further in a bad economy, so imagine if brand can even increase its budget. This gives brands and advertisers an excellent opportunity to try new and different strategies that they may have been shying away from during the good times, as well as separate themselves from the competition to gain Brand dominance if you are spending, compared to the competitors that are cutting. Unfortunately, I am not in such a high position, although hopefully some day. I digress. The reality is, in a bad economy, budgets for new and emerging media are really the first to go, which I believe is the case we have today. But I think it goes even deeper than this. From the Pat’s Wirespring article, I quote the following:

And she doesn’t mince words: “The agencies are lazy,” claims Swartz. “One of the biggest challenges [DOOH] will face is that people will never get fired for buying a 30-second spot.” 

Apparently Pat already received some backlash on his article from agencies (I thinking majorly because of this quote), but I think those who took offence are reading into it way too much at face value. Let me be clear; THIS IS MY THOUGHT, and I don’t want to mis-quote or put words in anyone’s mouth, but this is how I took this quote. Let’s not disregard the hard work agencies like OMD, OMG, UMcCann, etc. put in everyday for this industry. I don’t think Ms. Swartz or Pat  meant they are actually “lazy,” but rather, at times agencies are scared to take risks. Is this the agencies’ faults? Again, I go back to demand. Let’s not forget that agencies work for the Brands that commission them and have to justify every cent of the media spending. From this perspective, if decision-makers at the Brands themselves don’t know or understand a media, it is that much harder for agencies to recommend such buys. Can the OOH / DOOH ad industries honestly say that all the questions involving effective  measurement and reach can be answered conclusively? Many RFPs /presentations may say so, but the reality is, the answer to this is more likely “No,” or at the most, “we are closer than ever before, but not completely there yet.” I think shot myself in the foot with this statement, so let me just leave with this belief on this particular subject. In observing the immense evolution within this industry in just the past year, I would not be surprised; even expect, that a lot of the underlining questions will be answered with research-based confidence during 2009. Brands and advertisers have to understand that there will always be a period of growing pains with any emerging media, but that also does not mean a media should be deemed “un-buyable.” Sony and Disney, two major and steady brands I have had to fortune to work with over the years understands this fact, and look at them; Dominant! I still rarely see brands taking such an intelligent and integrated approach to marketing and branding as Disney and Sony does… Another small point is if a brand deems Social media as viable, but the OOH / DOOH media as not; that just doesn’t make sense, as both medias have similar challenges today.

Another key point that seemed to echo in the articles is the lack of “knowledge” and / or “interest” in the space. Well, what do you expect? There is a “natural” disconnect going on today. The “old school” decision-makers are still focusing on just TV, Print, and Events (traditional media), and also busy with tapping into, or trying to keep up with Online media. The “new school” is mostly all trying to get into the “hot,” and perhaps, the “future” of media that is Online. Someone should do a survey at the Marketing / Advertising departments at universities. If the question was asked, “Which sector of Media are you looking to pursue as a career?” I would bet my NYC apartment that “Out of Home” and / or “Digital Out of Home” would be one of the last on the options / results; if they even know about these industries at all. The youth have an immense power that they may not even realize, which is the ability to “blow up” or make “cool” a product, service, and even an industry. Decision-makers at brands and agencies all have assistants, and these assistants play a large role in serving as the “eye” for the top executives, which is simple fact. Until an industry can attract the young / smart talents to help get the word out, increasing demand will always be a challenge for this, and any other industry. I feel that  the ability to recruit and retain future talent is an issue that is not been covered enough in this space, and is a subject that can have a detrimental effect on the overall industry for the long term.

Another key point and quote from the Digital Signage Universe’s article, which deals with the issue of content quality:

The full impact of the digital out-of-home medium is not always fully realized. Campaigns often use repurposed content from traditional media rather than creating content that is specifically tailored to the medium. It takes about 7 seconds to make a connection with a consumer using digital out-of-home media, so repurposing a 30-second TV spot is not going to be as effective.

Simply put, quality and fit of content in the ads / overall Programming, as well of ad sales strategies / media prices that continues to be aligned with the broadcast TV style (this is a conflict because one has matured and been accepted, the other has not..) must improve and there is no way around this. Have you actually seen the content in these networks? Mostly pretty dry and repetitive to say the least so far… I don’t know the solution to this issue, but it is clearly a critical issue attached to the factor of effective engagement.    

Last point I want to touch on is about all the options and duplication that brands and agencies have to sort through in the Out-of-home / Digital Out-of-home. Simply put, there is too much in both cases; even in the software and DS supply industries. I am always all for entrepreneurship and innovation; this is what the U.S. and any civilized economy is all about! But, there are So many options (and “leaders”) within these spaces; which is something I recently realized, that it would makes anyone’s head spin. Look at Digital Signage Universe’s “Directory,” and this is just in the DS space. Include all the OOH suppliers, agencies, what have you; there are hundred, perhaps even thousands of options. I mean honestly; how many companies do we need that offers a “health club” or “bar” network, or ad delivery programs, etc..? Less so with the DS suppliers, as that side of the business has a lot of different applications in every day lives and could require different expertise and needs, but this is certainly relevant to the Ad side of the business. Unfortunately, with this current economy, Charles Darwin’s theory of “Natural Selection” will come into play; not only in these spaces, but most other spaces and industries as well. This is something that no one person / company will be able to stop; just a simple reality of life, and certainly, in business. As I write this, I read the news about “Transit TV” going down, which I really saw as one of the networks that made total sense due to its “captive” audience… Just goes to show; these days, it is not a matter of something being better or more innovative than the other… What happens sometimes just doesn’t make sense, but it happens regardless. Looking from the long-term or macro-view on this subject, we know that the thinning out of the industry(ies) is pretty likely this year and maybe even the next few years, but I personally (and so Very very Sorry to say!, but..), and probably from the brands and agencies’ perspectives as well; mergers, acquisitions, and yes, closings, may actually beneficial in the long run for the Out-of-Home / Digital Out-of-Home industries in order to get more focused, reduce the all confusion, and bring about standardization more rapidly.

Let’s call a spade a spade, move away from playing “defense,” and focus that energy on why it is necessary to play “defense.” When the “why” is fully figured out, I truly do believe that the undeniable solutions will come. I believe in all the intelligent and hard working professionals and friends within these industries that I would not expect any less.

Digital Signage Today (http://www.digitalsignagetoday.com/): I consider this site to be one of the premier site to go for all the breaking news in the industry. Yeah, the articles can use some pictures (I like visuals), but relevancy and conciseness puts the site really up there. 

Digital Signage Universe (http://www.digitalsignageuniverse.com/): Similar points as above, but with more visuals (love ‘em), and bit less advertising clutter; besides Lionel Tepper of DS Universe is a cool dude, and was the first comment on Just Out-of-home, so I’ll always have a soft spot for him and the site. Sup Lion!

DailyDOOH (http://www.dailydooh.com/): Ditto with the first two. Their LinkedIn group is quite good as well.

Engadget (http://www.engadget.com/): I love tech! This is probably the most famous site I have on the roll, and just love everything about this site. How is it relevant to us?  Their news on the upcoming Digital Signage /Interactive technology, which I deem Highly relevant in my own mess of a world. 

Mediaweek (http://www.mediaweek.com/mw/index.jsp): Simply put; if you are in market, advertising, anything of the sort- this site is just basic if you want to raise your industry IQ. I suppose Adage.com should be here as well…

Natural Interaction (http://www.naturalinteraction.org/): “I’ve seen the light!” Somewhat highlighted The Convergence of the Digital Signage and Kiosk Industries post, Alessandro Valli has an eye for how we are interacting with media all over the world. It’s a quite focused site in this subject and I do believe is the “looking glass” of our industry.

Screens.tv (http://www.screens.tv/): First of all, the name is absolutely BRILLIANT! Site design is clean, and the content and news are as relevant and similar to DST and DSU.

Sixteen:Nine (http://www.sixteen-nine.net/index.php): Perhaps I can personify myself with this blog the most. Its language and style is relevant, yet casual; a mix I like and the impression I’m also trying to make with Just Out-Of-Home. From “OVAB Guidelines for Dummies” to today’s post “SO many leaders…,” Sixteen:Nine has its own unique voice and take on the DS industry.

WireSpring / Digital Signage News Blogs (http://www.wirespring.com/) (http://digitalsignagenews.blogspot.com/) Two words: “Bill Gerba”… I follow the blogs, I follow his tweets; I guess I basically follow him. Perhaps no one is more in touch with the pulse of our industry than Bill. (No offense to all the rest on the list; I respect you all!) His posts are funny at times, but mostly, very intelligent and also provides a personal, yet Very relevant view on the industry. Anything from marketing intelligence, Venture Capital involvement in the DS industry, to IT technology; WireSpring & Digital Signage News provides us with chalk-full of issues and insight related to the DS industry. The conversations on Twitter are definitely worth following as well. 

So, that’s it! Follow them, RSS them, Tweet them, LinkedIn them; whatever you’re into. Just make sure you are reading these sites if you want insight into the Digital Signage world.

On a side note: I just realized I need to get more OOH sites on here… Anyone know of any good ones?

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