Sixteen:Nine Presentation

DIGITAL SIGNAGE:A crash course on what all the fuss is about

WHO IS THIS GUY?

SIXTEEN:NINE BLOGwww.sixteen-nine.net

LOOKING BACKThis stuff has actually been aroundfor a while

WHERE WE ARE NOW …

$6.1 BILLION MEDIA INDUSTRY IN 2008

12.9% PROJECTED GROWTH RATE OVER NEXT THREE YEARS

100S OF VENDORSAND 100S OF NETWORKS- five software firms just in Montreal!

CHAOS ABOUNDS

SO WHY IS THAT?

WILD WEST DAYS- land grab attitude persists- few standards on measurement, content- little advocacy or organization- big promises made, few kept

FLAWED BUSINESS MODELS- build it and they will come mindset- media companies run by technology people- ANYTHING as a media opportunity- shovel-ware content

BAD EXECUTION- screens and PCs that are dead- screens in the wrong places- moronic media strategies- people selling media who have no idea how to do it

COST OF CONTENT- keeping content fresh costs big money- stale content gets ignored- content done cheap usually looks it, and has the expected impact (none)

TOO MUCH ENTHUSIASM, TOO LITTLE EXPERIENCE

TOO MUCH NOISE- how can so many companies be the world leader?

CAPITAL AND OPERATING COSTS WERE HIGH- money gone before ad revenues materialized- chicken and egg thing about critical mass andmaking enough money to build out to critical mass

AND … IT WAS JUST TOO EARLY

WHERE WE ARE NOW…

SUCCESS STORIES EMERGING- Consistent, reliable evidence of real sales impact in stores- ROI models can be developed and believed- efficient, ultimately inexpensive way to market

BUSINESS MODELS- Ad-driven networks- Private networks- Sponsored networks- Hybrid networks- Layered services

DEPLOYMENTS EVOLVING- Different screens for different places and reasons- from signature feature areas to small, simple shelf-edge units

NETWORK AGGREGATION- aggregated planning groups- conjoined sales teams- ad marketplace- common focus alliances

One Plan.

One Buy.

One Bill.

THE CULL IS UNDERWAY- companies folding tents or selling- latest, TorStar’s Transit TV files for bankruptcy- 8,500 screens, 500 million riders

SHIFTING CONTENT- broadcasters and publishers moving content to this platform- social media stuff starting to intermingle- content work is also getting better

BLURRING LINES- POS systems- kiosks- mobile devices- in-store audio

DROPPING COSTS- panels less than $1,000- PCs less than $500, soon sub-$300- free or bundled software

DOOH-SPECIFIC MEDIA BUYS- Schering-Plough commits $8-$10 M

BIG GUYS ARE IN- IBM, Microsoft, Cisco, Dell, Fujitsu, Samsung and others- Is Google coming?

NEW TECHNOLOGIES- OLED’s thin, flexible screens- Electronic ink- Wireless broadband- Multi-touch and gesture-driven screens- LED micro projectors and window film- Adobe Flash Flex and Silverlight

NEW PLACES FOR SCREENS- sides of buses- rear windows of vehicles- building faces- queues- shopping carts and price checkers

NEW STAKEHOLDERS- human resources departments- store and venue operations- retail merchandising and design- public safety officials- interactive sector

BETTER MEASUREMENT- biometric gaze tracking may be a game-changer- trigger ads and events based on who is looking- but some worries about privacy

OVAB GUIDELINES

“Average Unit Audience should be the currency metric for out-of-home video networks. Average Unit Audience is defined as the number and type of people exposed to the media vehicle with an opportunity to see a unit of time equal to the typical advertising unit.”

HUH???

OVAB EXPLAINED- presence, notice and dwell time.

OVAB EXPLAINED- the foot traffic in a venue, like a medical clinic- the foot traffic in the area(s) where the screens are up and running- what percentage of that foot traffic actually looked at the screen- dwell time in the vicinity of the screen- length of the playlist loop

OVAB EXPLAINED- gross “eyeball” count not good enough- 50,000 eyeballs turns into 1,487 audience units- finally, the beginnings of a way to compare audiences across network types

CANADIAN VERSION?- doesn’t exist- Canadian Outdoor Measurement Bureau has nothing formalized for this space- open question as to whether planners WANT this level of detail

ELEPHANT IN THE ROOM- many networks that sell on the basis of sheer eyeballs don’t want a better read on the “real” audience- massive dilution and re-think on rates?

LOOKING AHEAD- far fewer networks and vendors- screens everywhere- DOOH becomes a mainstream media buy

LOOKING AHEAD- technology goes to Internet cloud- digital signage no longer just a nice to have for retail and outdoor- like online, this is evolving very quickly now

WAKEY WAKEY!- Thanks for listening

- Contact: david.haynes@broadsign.com 289-242-3332