by: Alain Thys

Frost & Sullivan just published a report indicating that the North American market for digital signage advertising has grown from $73.6 million in 2003 to $102.5 million in 2004, which is touted as a whopping 40% increase in only one year.

While this actually means the market size has gone from being a rounding error in the US advertising budgets to being "a little bit smaller rounding error", what was interesting to me is the report's conclusion that advertising agencies are struggling with the new medium as they don't know how to do 10 second commercials with minimal audio and can't handle the new metrics & technical specs which come with the medium.

Media buyers are also struggling with the lack of standards for measurements, audits and buying in this emerging market.

This would make it much more appropriate for sales promotion agencies who are not that bothered about brand building.

This makes me wonder whether digital signage (and other digital media for that matter) remain so small because they are new media with unproven track records, or because of the inertia of traditionally above/below agencies who can't cope with the new realities of campaign development and media buying.


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