Digital signage is a sub-segment of electronic signage. Digital displays use technologies such as LCD, LED, projection and e-paper to display digital images, video, web pages, weather data, restaurant menus, or text. They can be found in public spaces, transportation systems, museums, stadiums, retail stores, hotels, restaurants and corporate buildings etc., to provide way finding, exhibitions, marketing and outdoor advertising.They are used as a network of electronic displays that are centrally managed and individually addressable for the display of text, animated or video messages for advertising, information, entertainment and merchandising to targeted audiences.
Roles and function
The many different uses of digital signage allow a business to accomplish a variety of goals. Some of the most common applications include:
- Public information – news, weather, traffic and local (location specific) information, such as building directory with a map, fire exits and traveler information.
- Internal information – corporate messages, such as health & safety items, news and so forth.
- Product information – pricing, photos, raw materials or ingredients, suggested applications and other product information – especially useful in food marketing where signage may include nutritional facts or suggested uses or recipes.
- Information to enhance the customer service experience – interpretive signage in museums, galleries, zoos, parks and gardens, exhibitions, tourist and cultural attractions.[3]
- Advertising and Promotion – promoting products or services, may be related to the location of the sign or using the screen’s audience reach for general advertising.
- Brand building – in-store digital sign to promote the brand and build a brand identity.
- Influencing customer behavior – navigation, directing customers to different areas, increasing the “dwell time” on the store premises and a wide range of other uses in service of such influence.
- Influencing product or brand decision-making – Signage at the point of sale designed to influence choice e.g. Signage to help shoppers to choose dresses inside a fashion store[4] or devices that on a computerized shopping trolley helping the customer locate products, check prices, access product information and manage shopping lists.[5]
- Enhancing customer experience – applications include the reduction of perceived wait time in the waiting areas of restaurants and other retail operations, bank queues, and similar circumstances, as well as demonstrations, such as those of recipes in food stores, among other examples.[6]
- Navigation – with interactive screens (in the floor, for example, as with “informational footsteps” found in some tourist attractions, museums and the like) or with other means of “dynamic wayfinding”.
- Reservations – small, interactive screens on walls or desks that allow employees to reserve the space for a limited time and integrate with a room and resource scheduling platform.
Industry overview
Over 200 different companies worldwide market digital signage solutions[7] and the number is still consistently growing. With the influx of digital signage providers, the digital signage market is expected to grow upward to $21.92 Billion USD by 2020, with a CAGR of 8.04% from 2015 to 2020. The reason for the rise is due to the growing demand by companies for the development of digital signage solutions, advertisement displays and paper wastage reduction.[8] Presently, North America dominates the digital signage market and will be expected to continue dominating the market until 2020, with the US occupying a majority of the market share. The Asia Pacific and European region has shown promise, with Germany and UK in Europe, and Japan and South Korea in the Asia Pacific region. These four countries are expected to have the highest rate of growth by 2020.[9] The predominant market users of digital signage are restaurants,[10] retailers,[11] office buildings,[12] regional state and local planning authorities, public transport services,[13] and various industries.
Restaurants
Digital signage is used in restaurants through an interactive menu screen that rotates promotional offers. Restaurants use digital signage both indoors and outdoors, with the latter needing a form[14] of weather protection depending on the components of the hardware. Outdoor usage of digital signage is most prevalent in drive-through that allows the customer to browse through the entire menu at a glance while also placing their order with an interactive touchscreen.[15] Indoor digital signage is used for the display of menus. Prior to the integration of digital signage, restaurants manually updated the cafeteria menu, which is in itself a full-time job, especially if the menu is updated daily. With digital signage, restaurants do not have to manually update the menu feed, with live menu feed from digital signage solutions.[16] According to a survey conducted by quick-service restaurants and casual restaurant operators, over 20% of restaurant operators experience a 5% sales lift after incorporating digital signage in their service sectors.[17]
Shopping malls
Digital signage is widely used in shopping malls as a form of directory or map display. Uses of digital signage include a wayfinding kiosk, enabling the customer to find their path through an interactive touchscreen. Recent digital signage have begun combining interactive advertisement with wayfinding application. This will offer shoppers who interact with the advertisement of the tenant in the shopping mall to the store. Another usage is disseminating relevant information such as the schedule of an event or campaign.[18]
Campaigns
Digital signage is used during exhibitions or marketing events to entice passersby. Digital signage aims to attract crowds to events and enhance visitor experience by making the experience memorable. Exhibitions use digital signage to create branding experiences.[19] A recent campaign promoting the release of The Emoji Movie used a digital signage kiosk to allow guests to interact with various emoji characters via the windows outside and inside of the party.[20]
Hospitality
The hospitality industry uses digital signage to display crucial information at a convenient and visible location for all its patron. A digital signage is capable of functioning as a virtual concierge in hotels and as entertainment for conferences during waiting room.[21] Digital signage is also used in hotels as a form of wayfinding, to guide a large group of people for a conference to the correct room. Digital signage is used to provide a simple method to update information that is continuously changing such as expo information.[22]
Cinema
Digital signage is placed in the lobby, concession stands and displays advertisement before the movie begins. This informs customers about other theater offerings and scheduling, increases concession sales and gains other sources of revenue.[citation needed]
Transport
Transport is a growing sector for digital signage with practical solutions, such as wayfinding, as well as out-of-home advertising.
Personalised digital content
One specific use of digital signage is for out-of-home advertising in which video content, advertisements, and/or messages are displayed on digital signs with the goal of delivering targeted messages, to specific locations and/or consumers, at specific times. This is often called “digital out of home” (DOOH).[23][24]