[opendtv] News: Digital signage will eclipse network TV ads, ad execs predict

In 2004, spending on communication-related subscriptions - such as 
cell phones, home Internet, cable and satellite TV and radio, etc. - 
exceeded advertising media buys, according to Terri Tinella, senior 
vice president for communication and marketing effectiveness at 
Nestlé Canada...


 From Broadcast Engineering's Digital Signage Update

http://broadcastengineering.com/newsletters/dsu/20050629/Digital-signage-eclipse-20050629/

Digital signage will eclipse network TV ads, ad execs predict

Jun 29, 2005 1:23 PM
Digital Signage Update e-newsletter


The future of advertising will not be dominated by network TV, 
declared Sir Martin Sorrell, founder and chair of advertising and 
marketing conglomerate WPP, in his address to the Marketing 
Innovation Summit June 14 in Toronto.

Sorrell and other marketing agency leaders delivered their 
perspectives on the new realities of marketing as a business, 
including the digital space. They argued that there is a need for 
precise marketing and communication practices and performance 
measures that meet the new realties of today's borderless and diverse 
consumer market. This is sweet music for digital signage providers 
and users.

Sorrell's WPP companies buy one in every four ads worldwide, spending 
$40 billion annually. He said that TV's relative power is declining, 
despite rising cost-per-thousand (CPM), prompting greater 
experimentation. Fast changing market demographics and consumer 
behaviors, Sorrell added, necessitate a major shift in how and where 
marketers communicate with consumers.

Statistics reinforce the need to use different communications 
approaches for reaching consumers. Wal-Mart In-store Television 
reaches 200 million consumers monthly in more than 5000 stores where 
shoppers spend $300 billion annually. Wal-Mart's In-store network 
exemplifies innovation at work, said Yasmin Glanville, president of 
CTR, a strategy and marketing solution consultancy. She added that 
in-store signage allows consumers to touch and experience product and 
service choices in the context of where they explore and shop.

In 2004, spending on communication-related subscriptions - such as 
cell phones, home Internet, cable and satellite TV and radio, etc. - 
exceeded advertising media buys, according to Terri Tinella, senior 
vice president for communication and marketing effectiveness at 
Nestlé Canada. Each subscription takes attention from other media, 
and the number of channels and viewing options compounds the 
fragmentation.

Alan C. Middleton, executive director of the Schulich Executive 
Education Center, noted that intolerance for wasted ad spending is 
growing, so statistical measurement is imperative and will drive 
decisions. Trish Wheaton, president of Wunderman Canada, who was 
recognized as 2004 Marketer of the Year, said the marketing industry 
needs to move from cost per thousand (CPM) to return on investment 
(ROI) and investment effectiveness metrics. The shift from "mass" 
marketing to "measurable" marketing is part and parcel of the shift 
from network TV to digital signage and purchase location signage.

The future is direct marketing, relevant and accountable, Wheaton 
added. A key benefit of digital signage is the digital component. An 
assurance that ads are posted as and when planned, reducing the costs 
of ad production and display logistics, leveraging production costs, 
increasing speed-to-display and the cycle time of test-refinement are 
inherent benefits of digital display networks.

WPP and other marketing agencies are hunting down better marketing 
communications ROI. The tracks lead to dynamic digital signage, 
in-store TV and related communications vehicles based at or near the 
location of consumer spending.

DSU guest contributor Lyle Bunn is director, digital display and rich 
media, at BTV+ and serves as chair, Education Committee, Digital 
Signage Group, Point-of-Purchase Advertising International).

For more information, visit www.btvplus.com.
 
 
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