The latest, and possibly the most effective new advertising and marketing tool since the Internet, is the new medium of digital signage. Also known as electronic signage, this dynamic media, with its Flash technology, massive and not-so-massive display screens, its sharply focused LCD ad player screens, its motion, sound, and color is clearly the future in mass marketing. Narrowcasting networks, LCD-dominated advertising kiosks, electronic billboards, all offer a solution to your point-of-purchase advertising needs, among many other advantages.

With this emerging new marketing medium, of course, come emerging difficulties, including cost issues, return-on-investment (ROI) questions, the adaptability of the technology to various methods of programming, an as-yet-unproven record of success within the advertising and marketing industry, and a plain lack of understanding of the technology and systems involved. This lack of understanding encompasses not only the hardware and software, but installation and programming parameters, as well. Unfortunately, this lack of understanding was often expressed by venders of digital signage technology, as well as users. A lack of interoperability, as well as what’s known as “a complex value chain”, also complicates, sometimes even compromises, the effectiveness of this innovative technology.

Clearly, digital signage, though beyond its initial teething stage, is still in the midst of its inevitable growing pains. Considering the complex technological and broadcasting standards involved with in-store, narrowcasting networks that are designed to provide out-of-home programming, such problems are not surprising. Fortunately, neither are they unsolvable.

Studies, by Arbitron, among others, show that digital signage is an effective tool in prompting customer appreciation, retention, and recall of the information they see when presented as dynamically, and as vividly as it is via electronic signage. Also, smaller scale investment of, for example, one LCD screen in a particular location would cost only some $3,000-$5,000 dollars. The ROI for such an installation would be returned almost immediately.

The development of more open and compatible standards for digital signage is being actively pursued by industry groups like the Point-Of-Purchase Advertising International (POPAI), and the Outdoor Advertising Association of America (OAAA). Each of these organizations are working feverishly to relax and ease technical standards in order to facilitate interoperability of the equipment and technology of various different venders.

New enterprises are constantly emerging to confront and to solve all the various technical, mechanical, and operating issues common to any new system. System venders, digital signage service providers (DSSP), and advertising service providers all have lately come into being to help businesses and institutions take full advantage of the marketing potential of digital signage.

Conferences and trade shows are being held more and more frequently, and, in concert with increasingly prevalent Internet-based information, all are instrumental in helping both users and venders better understand and keep abreast of this constantly-evolving digital marketing technology.