Choosing the right system for this growing marketing/advertising outlet

It’s the classic "where do we go from here" scenario. You work for a company, and your boss asks you to install and maintain a digital signage network. Or you’re a video producer, AV systems integrator or run a small advertising agency, and you want to learn how to cash in on what may be the next big wave in video distribution, big screen installations or narrowly focused advertising. With the prices of large plasma and LCD screens seemingly dropping by the minute, how do you jump on board this fast-moving train? Regardless of how you became interested in setting up a digital signage network, the concerns are essentially the same.
First, you’ll have to look at how capable a system you’ll need, because that will determine the cost. A digital signage system can be as simple as a $69 television and $29 DVD player purchased off the shelf at Circuit City. Or it can be as complex as a $12,000 plasma screen and desktop PC running Infonet TV or Scala software.
"Neither the low-cost nor the high-cost solution is the best for most people," explains Ron Johnson, VP of marketing and administration for Adtec Digital, a digital distribution solutions manufacturer based in Nashville, TN. "The low-cost solution does too little; the high-cost solution is too management intensive. For people who need more than simply looping a video clip, a solution around $1,200 to $2,500 is typical. That price includes a display and a video playback device or satellite/IP receiver."
A screen and DVD player running looped video may be more versatile than you think. "That’s our biggest competitor actually," says Dick Trask, marketing director for Scala, a digital signage software developer based in Exton, PA. "If that’s all you really want to do, that’s all you need. But if you want to be able to change your message, and tailor your message to your audience, then you’ll have to pay more to do that."
The next step up would be a desktop computer attached to a screen running PowerPoint or similar software. If your message is primarily informational, and it doesn’t have to be more appealing than a glorified business presentation, it may be all you need. Dell sells a 1920 x 1200 resolution 24-inch widescreen LCD display (the 2405FPW) that’s sometimes discounted below $1,000. Combine that with a low-cost PC and in-house PowerPoint designer, and you could have the visual equivalent of the informational displays you see in airports and retailers.
Keep It Moving
Second, you’ll want to look at the content. So far we’ve considered various systems that have either a fixed loop of content or a limited ability to vary the content according to the time of day. Why do this? A YMCA, for instance, might have one message in the early morning for members on their way to work, and another message in the late morning for members who aren’t working that day. There might be a different message for the gym than for the lobby. And wouldn’t it be better to not have to physically update each playback node, but to instead control all the content from a central location? This is where digital signs become dynamic digital signage and take a giant leap forward in capabilities.
The Scala software is a popular choice for digital signs that need to be networked with minute-by-minute control. "Today you can buy a 42-inch LCD screen for $1,800 if you shop around," explains Trask. "You hook that up to a standard Windows computer running Scala software, which will cost about $1,800 to $2,000 for the authoring system and player environment. So you’re looking at a $5,000 to $6,000 investment for one screen." Additional playback nodes would cost anywhere from $1,200 to $2,000 for an extra player, plus whatever you choose to pay for the screen.
If you’re spending thousands of dollars for each networked display node, it’s even more important that your content is compelling. "There’s a big effort involved in maintaining fresh content and fresh presentation, especially in a small environment with video-based content," says Andy Gregory, GM for Electrosonic Media Networks Division, a presentation products designer and manufacturer based in Burbank, CA. "That’s one area where a wide-area distributed system works very well, because there’s an economy of scale. You can afford to have good productions and make the content compelling."
Should you try to create the content in house? "It largely depends on whether you have the in-house capability and access to a lot of pre-made material," explains Gregory. "Nike already has a large base of content, so it’s not a huge incremental step for them to present that in their stores." Video producers would have an edge here by being able to shoot or reformat video specifically for a digital signage network.
"Outside groups are often able to provide better content than a single in-house group," explains Johnson. "In situations where there’s a lot of text and graphics, in-house internal resources are often used. That’s because it’s easy to change text and graphics." With video, it tends to go the other way. Companies will often turn to video producers to avoid copyright ambiguities with previously acquired video.
Even if a company has the ability to create the content, it may not be the best course of action. "It’s a full-time job," says Trask. "If you’re a retailer, and your digital signage is part of your strategic direction, then it has to integrate with everything else in your store. How are your shelves designed? What kind of products are you selling? What’s the look, feel and theme? Creating that kind of content is typically a function of an advertising or media company."
Hiring an advertising or media consultant is likely to be well out of reach for a YMCA, church or small business, which are increasingly interested in digital signs. If that’s your case as well, you would need to find someone in-house or hire someone on a temporary basis to liven up your content and make it consistent with your organizational image or goals.
Room to Grow
There’s something else to consider: How scalable are digital signage networks if your organization expands to multiple locations? There are two types of systems: graphics-based solutions and video-based solutions. "Video-based solutions are more difficult to maintain," explains Johnson. "That’s because there’s more content to be updated. Video takes up more bandwidth than text and graphics." Video-based systems have the edge for displaying compelling content, though you’ll have a much harder time distributing the content.
You can update your video content in three ways: via an online connection (such as the Internet or an intranet), via a disc (such as a DVD or CD) or via satellite. For standard video or high-definition video, an online connection would be appropriate only for short video clips. You can’t reliably send gigabyte-length video files, even with a broadband connection. With DVD and CD distribution, you introduce layers of complication. What if the location doesn’t receive the disc on time? Can you count on the employees to correctly copy the video file to the local network?
You may be surprised to learn, or already know, that satellite distribution is relatively affordable and can be automated with programs such as Scala. "There’s an economy of scale that happens with satellite, as opposed to local area networks," says Gregory. "Once you hit certain numbers of locations and certain amounts of content, it becomes more cost effective to distribute through satellite than other mechanisms." There are various ways to pay for the satellite time. BTV+, Hughes Network Systems, Marshall Communications and Microspace are currently selling space on their satellite networks by the megabyte.
Is there anyone you can turn to who would be an expert in every aspect of digital signage networks? Probably not. Electrosonic does just about everything, except for content. And Scala does software, but doesn’t do hardware. Both companies, however, have relationships with other companies that can fill in the gaps.
The best way to approach this is to assume it will be a group effort. You may be able to bring video production, installation or content creation skills to the table, but you may have to rely on others to help you in areas you’re weak in. Because its customers may need help outside the area of software, Scala has formed a partner network, EDR Media, of 250 companies with a variety of skills and expertise. Trask explains that a media company belonging to EDR can easily look onto its network to help out customers. "If my customer wants a turnkey system, all I have to do is look back onto this network, find the components I need and develop a business case."
Because digital signage is a hot topic these days, there has been a sudden rush of entrepreneurs hoping to make a quick buck. "My advice is to go to someone who knows what they’re talking about," adds Trask. "There are a lot of people out there selling individual little black boxes to do some esoteric little thing. And because it could be used in the environment of digital signage, they claim they’re in the digital signage business."