Why Our Industry is Broken
By Steve Schilling on May 9, 2016
“Our industry is broken; it’s as simple as that. With a fragmented market of more than 300 software providers, an array of hardware and technology options, high up front cost and no meaningful performance metrics, making an investment in digital signage today is a roll of the dice. But we’re changing that.” – Steve Schilling – President, Convergent
The digital signage industry is poised for significant growth. According to a market research report, the worldwide digital signage market is expected to reach $23.76 billion by 2020, at a compound annual growth rate (CAGR) of 8.18% between 2015 and 2020. One factor for such growth is digital signage’s effectiveness and the value it adds to the bottom line. Consider these stats from a well-publicized InfoTrends report:
Digital Signage increased brand awareness by 46.7%
Digital Signage increased average purchase amount by 29.5%
Digital Signage grew repeat buyers by 32.8%
With such impressive numbers, why is everyone not taking advantage of digital signage and reaping its rewards? Because the digital signage industry is broken and there are four factors preventing its wider adoption.
Let’s break these down.
Market Confusion: The digital signage market is fragmented. There are more than 300 software providers, countless hardware and no industry leaders. Choosing the right vendors and making all the technologies work is a daunting and time consuming task, especially if you don’t have a clear understanding of the complexities of the market.
Cost to Implement: While the costs of digital signage technology have come down significantly over the last ten years, the capabilities have increased which in turn creates more complexities and thus means digital signage remains expensive. Whether you are a small business planning to deploy a couple of screens or a Fortune 500 company implementing a large rollout—digital signage is anything but simple no matter the size of your business.
No Measurement = Unknown Results: One of the most critical steps in the digital signage decision making process is often overlooked—defining your solution’s purpose and measuring its effectiveness. Most digital signage isn’t measured by quantitative data, but by how it looks and feels. If it looks good and feels good, then the assumption is it must be working. That assumption is wrong.
Without measuring, there is no clear picture of whether your solution is working. Lack of clarity leads to doubt and doubt leads to questioning the solution and the investment—Is another approach better? Maybe expanding is best? Maybe just shutting down entirely is the right course of action? Without measurement and clarity of return on investment, the answer is a vague and unhelpful, “Who knows?”
Perceived Risk: Without definitive answers to important questions including, what result do we intend to achieve, which technology to choose, how to measure effectiveness and how much capital is required, it is almost easier to do nothing at all. In fact, the reason why most digital signage projects are delayed or never get off the ground is there are just too many unknowns.
How do you remove the unknowns, fix what is broken and make the digital signage decision-making process easier and therefore more widely adopted? In the words of infomercial pioneer, Ron Popeil, “There has to be a better way!”
There is: our way.
With hundreds of thousands of successful digital signage deployments around the world for businesses of all sizes, our way works. We deliver results that increase brand awareness and turn consumers into customers. And here’s how we do it:
Digital Signage as a Service (DSaaS): Our simple, end-to-end solution approach takes the guesswork out of choosing the right vendors and technology. More than just software and hardware, we include everything you need—strategy, award-winning creative, content management and distribution, installation, 24x7 technical support and field services to ensure your solution is always up and running, delivering your desired result.
Minimized CapEx: Moving digital signage from a capital expense to an operating expense makes solutions easy to get started and better aligns results with expense. We significantly reduce upfront capital costs and make overall costs more predictable and simple to manage with our simple monthly fee.
Measured Performance: We are obsessed with measuring results to ensure your solution is working and to also give you the confidence to grow and expand your network. We strive to understand your objectives, create benchmarks to gauge success and monitor and adjust along the way to ensure your solution is impacting your audience at a maximum level.
Guaranteed Results: We are so confident in our ability to drive business objectives and deliver results that we guarantee success. We apply our unique Media Mapping℠ process to quantify your objectives, establish benchmarks and craft the right strategy, content and solution to meet your objectives. We back our results with service level agreements so in the end, you have a solution you can grow with confidence.
The digital signage industry is broken, but it doesn’t have to remain that way. By simplifying the buying decision through comprehensive service offerings that eliminate capital risk, align expenses with revenue and provide the industry’s first Service Level Agreements on results, we hope to unleash the benefits of digital signage.