Sixteen:Nine - The Digital Signage Blog
Bad server, BAD!: The Sequel PDF Print
Written by Dave Haynes   
Monday, 05 January 2009 19:01

Down ALL day. Something to do with mySQL databases. It JUST seems to have come back on stream.

Oh, the perils of paying $4 a month for hosting  ;-]

Back at it tomorrow. 

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Happy New Year! PDF Print
Written by Dave Haynes   
Wednesday, 31 December 2008 08:38

All the best for tonight and the coming year.

I thought about predictions for next year, but it is sooo hard to get a sense of where things are going when the economy is so wobbly.

Suffice to say I think smart people and smart companies (usually, but not always, related) will do fine. Those who haven't been all that smart to date, will need to make good and sometimes tough decisions over the next quarter or two and figure out very clearly what they want to do and what it's going take to get there. Or get out before their investments are totally Draino'd.

Some companies will drop off. Yet more will come in. Prices will drop. So will fees. There will be more tall tales and irresponsible rumor-mongering. Business models will get better. Installations will look sharper. Content will be better tuned to the medium. And we'll spend even less time explaining what it is we do, and what it's all about.

Next year was going to be THE big year, for a few of those years now. It's hard to imagine 2009 being a truly big year with a fat, smelly recession in play,  but I do get a clear sense the industry is coming out of its infancy and will develop some much-needed maturity in the months ahead. I'm actually optimistic about what's ahead, and look forward to meeting and working my my industry friends and partners in 2009.

If you're out tonight, have fun ... and figure out who's driving before you start popping corks. 

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Last Updated on Friday, 02 January 2009 10:41
 
OVAB Guidelines for Dummies PDF Print
Written by Dave Haynes   
Tuesday, 30 December 2008 14:33
 
 
I'd imagine there are two camps out there when it comes to the Out-of-home Video Advertising Bureau's much anticipated guidelines for measuring the digital screen advertising industry.

There's probably a small camp of research types who love this sort of thing, as well as people at a few member companies who were forced to spend enough time on it that some of it actually sunk in.

Then there's the rest of us -- the great unwashed of this industry -- who probably took a couple of runs at reading the report when it was released with considerable hoo-hah last fall, and uttered the only phrase really possible: "Huh?"

It is well-considered, well-conceived, entirely laudable work -- done with the best intentions of starting to herd the industry cats and get the many, many, many network operators out there to start measuring and selling what they've got in some roughly harmonious fashion. Without such guidelines, the people in media planning groups and at brands who control media spend will continue to look at the digital out of home industry as an interesting sideline that's WAY too perplexing to understand, validate and buy. 

But the guidelines, to be kind, are tough going. For the time-crunched or nominally interested, they are pretty much impenetrable.

Read the core statement of the thing: Average Unit Audience should be the currency metric for out-of-home video networks. Average Unit Audience is defined as the number and type of people exposed to the media vehicle with an opportunity to see a unit of time equal to the typical advertising unit.
 
A handful, and I do mean handful, of people will read that over and conclude, "Ok, yup . Good. Got it."

The rest of us will more likely be bug-eyed and blinking, with bubbles forming on our lips. 

For the research nerds, and ad sales operations types, the guidelines have a lot of good, deep thinking and plenty of rationalization and back-up on why the guidelines were shaped this way.

But the document is too big, too deep and too laden with new jargon to be absorbed and, more to the point, embraced and used. Much of this industry will succeed or fail based on the ability to win advertising and brand marketing dollars, and that means we should ALL know at least a little about the measurement standards that are being created and advised to give the industry credibility. My fear is most of us looked at the OVAB guidelines last fall, and decided we were going to need to set some time aside later to really read and absorb them. And because we're all stinkin' busy, that time hasn't been set aside and many of us have moved on.

So, for my own benefit, and sanity, I have been reading the guidelines over (and over) and boiled it down to what I am calling OVAB Guidelines for Dummies.

I started down this path trying to break down the sections into easy-read, easy-understand versions, but abandoned that concept. There's a lot in there, and for those truly interested, it's not that hard to digest once you get over the hump of some tortured phrasing. My intention is to break down the core thinking into something more easily understood and remembered for those of us who just need to know the highlights.

The background to the guidelines is straightforward. There are countless digital screen networks out there now, and more coming. Just about all of them have their own way of measuring their viewing audience, and there is little in common between them. The venues, from corner stores to airports, buses to elevators, are too diverse to even imagine a single measurement system. But the thinking is that maybe a common set of measurement standards would lead to results that could be compared by the agency and brand people who would buy time on these kinds of networks.

"If each audience measurement study strives to produce the same set of metrics with an acceptable level of research quality," says the guidelines, "and the data reporting is harmonized, the results can be safely compared for any number of typical media buying and planning analyses."

The people who put the guidelines together recognized many of the companies in this space do not have pockets deep enough to fund really high quality measurement, and the net result are fairly elemental guidelines that might make media research uber-nerds roll their eyes. But OVAB says these initial guidelines are a foundation, and that it will be in the interest of everyone to do deeper (read more expensive) research as the industry matures and research budgets grow.

With that stated, here's the nut of it:

This is all about sorting out how many people had the opportunity to see an ad, therefore defining the network and venue's advertising value. The key characteristics are presence, notice and dwell time.

The product of these guidelines is a number, that spits out at the end of a calculation, that sorts out the following:
  • the foot traffic in a venue, like a medical clinic
  • the foot traffic in the area(s) where the screens are up and running
  • what percentage of that foot traffic actually looked at the screen
  • dwell time in the vicinity of the screen
  • length of the playlist loop

What this does is level out the measurement for different networks who can can claim similar foot traffic but, because of the other variables, may actually be delivering very different ad impression/eyeball numbers.

For example, let's use the example of two clinics that both claim to run 5,000 people through their doors each month.
 
Each clinic is a "venue" in OVAB terms.

In both cases, 80 per cent of the people end up parking their butts in the area where a screen is running (this area, in OVAB's terminology is the "media vehicle"). 

So based on that 80 per cent, the potential audience is reduced by 20 per cent to 4,000. That number, says OVAB, is the "vehicle traffic."

For those 4,000 people, in both cases, surveys or other technologies sort out that 75 per cent, on average, actually notice the screen. So that reduces the number to 3,000, which OVAB calls the "vehicle audience."

Now here's where things start to diverge.

In clinic A, the average dwell time is 10 minutes (600 seconds) and the playlist loop time matches that. So of those 3,000 people who noticed the screen, all of them had the opportunity to see all of the ads and other content in the playlist loop. The means the final number, the "average unit gross impressions," is 3,000.

In clinic B,  the average dwell time is 10 minutes (600 seconds) but the playlist loop time is 30 minutes. So the playlist is three times longer than the dwell time available for people to be exposed to all the ads in the rotation. The result is that the audience only had an average 33 per cent exposure opportunity, which reduces the overall 3,000 number to just 1,000 "average unit gross impressions."

So two medical clinic networks that may be selling their ad inventory on the basis of pure foot traffic have, using these guidelines, very different actual audiences when these calculations are used.
 

 Network example Clinic A Clinic B
 Venue Traffic 5,0005,000 
 % in the vehicle zone (near screen) 80% 80%
 Resulting vehicle traffic4,000  4,000
 % who notice the screens (vehicle) 75%75% 
 Resulting vehicle (screens) audience 3,0003,000 
 Dwell time near screens 600 seconds 600 seconds
 Content loop time 600 seconds 1,800 seconds
 Match of dwell and loop times  100%33%
 Average unit gross impressions 3,000 1,000
 
Another example: A network in a train station may have 100,000 people a day near the screens, but if only 10 per cent look and the dwell time is only 10 seconds and the loop is 60 seconds, the actual gross impressions per day is more like 1,600.

It was doing this calculation, a fairly close variation on one that has been used in my own industry circle of friends for years, that finally gave me the Eureka moment. The words are tough to grasp but the calculation makes it pretty simple. 
 
It allowed me to go back to this tortured statement: 
Average Unit Audience should be the currency metric for out-of-home video networks. Average Unit Audience is defined as the number and type of people exposed to the media vehicle with an opportunity to see a unit of time equal to the typical advertising unit.

And turn it into this:
Average Unit Audience should be the standard measurement used for digital screen networks. That means a common way of defining how many people had an opportunity to see the ads on screens installed in network venues, and how many of those people were around those screens long enough to see all the ads that were scheduled to run. Ideally, the average amount of dwell time around the screens is equal to the length of the ad loop.  If not, the average unit audience may be larger or smaller depending on that dwell time and loop length.

The OVAB guidelines go much, much deeper than this, and talk about variables such as networks with a content/ad mix, things like reach and frequency and the longer view approach that goes beyond audience measurement, into performance measurement and attitudes towards networks. There's lots of good stuff in there, and if you have the time and the inclination, do drill down.

If not, and you just need to have a base understanding of what all the OVAB fuss was about, hopefully this cleared the fog a little for you. 
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Last Updated on Tuesday, 30 December 2008 19:24
 
Ratings agency looks at ad prospects for coming year PDF Print
Written by Dave Haynes   
Tuesday, 30 December 2008 10:17
Global ratings agency FitchRatings says the world's major econmoies will see a downturn as steep as anything seen since the end of the Second World War, with with a big drop in GDP and spillover effects that include serious weakness in the advertising industry.
 
A MediaPost Research Brief, received by email, reports that FitchRatings "is more cautious than most major advertising forecasts, none of which currently predict advertising to be nearly as weak as 2001."
 
Fitch's cautious view about advertising is, in part, supported by these underlying conditions: 
  • The 2001 ad downturn was concentrated in national advertising, while the 2008-2010 downturn will include both local and national components. Political and Olympic spending masked the local market weakness in 2008, but the report says the absence of these revenue sources in 2009 will expose the depth of this weakness. 
  • This weakness in local markets will be compounded by national advertising pressures due to the impact of the credit market events that hit while many large national advertisers were planning their 2009 ad spending budgets, forcing many companies to emphasize capital preservation and liquidity, not just earnings growth.
  • With advertising being one of the most easily scalable fixed costs, some major advertisers could plan to pull back on national campaigns considerably until there is more visibility in the market.
Five of the top 10 advertising categories, or over 40% of the ad mix (according to Advertising Age), will be under meaningful pressure next year, says the report: 
No.1 Retail (12% of total) 
No.2 Automotive (12%) 
No.5 Financial Services (6%) 
No.6 General Services (6%)
No.9 Airlines, Hotels and Car Rentals (4%) 
 
And, notes the report, advertising inventory has proliferated (from online and emerging mediums as well as traditional ones) since previous downturns. Media companies are likely to compete more heavily on price in this downturn to fill the vast supply of ad space available. 
Advertisers have many more options in the current environment than at any other time for maintaining a presence with consumers while trimming their budgets and scaling back high Cost Per Thousand (CPM) advertising campaigns, says the report.
 
Even healthy advertisers are likely to use this increased bargaining power to command better price terms and concessions from media companies.
 
One bright spot in all this is outdoor, based largely on the efficiencies brought on by networks digital screens.
 
Outdoor 
Fitch believes the potential negative effects of increased inventory from digital roll-outs should be tempered by increasing appeal to national advertisers, as well as decreases in price per unit. Cost structures should benefit from digital billboards, as displays can be centrally managed without physical deployment of work crews. Low CPMs and better networked national sales pitches, position outdoor advertising companies to endure the downturn and rebound with the economy.
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Looking back ... first PDF Print
Written by Dave Haynes   
Monday, 29 December 2008 08:55

Every year around this time, because I seem to be one of a handful of people working instead of sitting on a beach or spilling into trees on a ski slope, I do a list of predictions for the year ahead.

How I do that for 2009, given the state of affairs, is a big question. Gimme a coupla days. Ahead of that, though, here's how I did for 2008 (with the big qualifier that my generalities required no brilliance or psychic powers).

1 - More consolidation. 

Yup, we're starting to hear and read more and more about similar networks blending sales teams and forming larger networks, while retaining some autonomy. I think you will also see more mergers of companies who are going after the same market. On the supplier side, several software companies were shopping themselves around in 2008 and that will really accelerate as these guys either find a buyer or fold tents.

2 - Outdoor is going to be the big mover (and spender) in 2008. 

Yup, Titan particularly in North America. In Canada, Pattison went from nothing to networks in elevators, office tower concourses, shopping malls and airport wait lounges.

3 - Price pressure on content production. 

Hmmm. I'm sure it is there, but I'm not sure prices have dropped. I am seeing more companies taking it in-house and also willing to take on external work at rates well below the pure-play content shops, but the quality gap will be noticeable. 

4 - The land grab will get tougher. 

Hmmm. Still seeing and hearing about retailers and venue operators doing deals that allow third-parties into their spaces on a revenue share basis. However, there also seems to be a tighter coordination between the venues and the networks. And we are also seeing more retailers just do their own thing, though the numbers are still miniscule.

5 - Measurement gets more important, and better. 

Yup. There was a big push in this area, most notably through OVAB's efforts. We also saw some technology move out of the labs and trade show  booths and into the field, particularly face-counting technology uising biometrics.  

6 - Retail design starts coming into play. 

A somewhat feeble yup. It's happening, but just barely. New store designs are starting to bake screens in, but it's still rare and when it happens, a lot of it has that, "Hmm, where can we stick a screen???" taint ot it.  

7 - Ad sales aggregators get real traction. 

Hmmm. Both SeeSaw and Adcentricity have signed up a lot of networks but it still remains early days. And they don't like the term aggregators, preferring to be known more as media planners for this space. 

8- The drive to standards. 

Yup, see 5

9 - Less bullshit. 

Miss. Still tons of it out there, and I can see why people do it. Public relations news is so automated now that just about any press release stuck out there gets regurgitated, without filtering, on what seems like countless portals and technology news sites. If you use Google Alerts, just watch how many times some press releases pop up. There is a near total absence of basic journalist practises, like fact-checking and objectivity, exercised on blogs, and portals and trade sites. A declaration of being the world's largest is passed right on through. Silly quotes are not challenged. And unattributed, unchecked rumors get posted like news, under the seemingly twisted theory that first declaring something is just a rumor makes it then legitimate to publish. 

10 - More roadkill. 

Yup. There were some high profile failures like Reactrix, but anyone whose job involves building up a sales pipeline knows of a few big projects that have gone away and expansion plans for existing customers that didn't happen because of the economy.

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Last Updated on Monday, 29 December 2008 10:07
 
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Page 1 of 52
Special Post: OVAB Guidelines for Dummies
I'd imagine there are two camps out there when it comes to the Out-of-home Video Advertising Bureau's much anticipated guidelines for measuring the digital screen advertising industry.

There's probably a small camp of research types who love this sort of thing, as well as people at a few member companies who were forced to spend enough time on it that some of it actually sunk in.

Then there's the rest of us -- the great unwashed of this industry -- who probably took a couple of runs at reading the report when it was released last fall, and uttered the only phrase really possible: "Huh?"
Read more...
 
Special Post: Making the right software decisions

There are some 300 companies out there selling digital signage software, and Lord knows how many more home-grown, in-house solutions. So ... how do you make sense of it and make the right decision for your company?

Read more...
 
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