Place Is Known
Because the location of any display will be known, this information can be used to make the content more appropriate to the place. If a display is located near one particular product, the content of the display can be crafted strategically with this in mind. For example, the content could promote that product, or promote its benefits, or create an appropriate mind set (ambiance, reminder) or to promote a complementary product or service available elsewhere. Another aspect of “place” that is quite relevant is the fact that often a display is near the point of purchase. A great deal of research has shown that advertisements near the point of purchase are far more effective. Although the size of this effect and the explanation for why it happens are both controversial, it’s clear that point-of-purchase information has a massive impact on behavior.
Time Is Known
Because digital signage is controlled by a computer system, content is “served” as a function of time of day. For example, content aimed at business travelers might be shown at an airport on Monday mornings and family-aimed content might be shown Friday afternoons.
Events Are Known
Information related to the fusion of time and place also can be known. For example, current weather conditions can be known. The traffic flow can be known. The specifics of an event can be known (concert, sale, flight delay). Such information - and its use – is limited only by the creativity of the digital signage network designers.
Audience Is Known
Because time and place are known, audience demographics and psychographic information can be well specified. This allows for highly relevant “narrowcasting” that should speak directly to the audience at that moment.
Content is Dynamic
Having dynamic, digital content has numerous advantages over other forms of advertising. Compared to print, the content creation/distribution process is more rapid and less costly. Also, the content can be consumed and tailored “on the fly” to each display device separately. Finally the medium allows for animation, video, sound, and interactive opportunities.
Footnote: Excerpted from Digital Signage Networks: "Theory, Psychology and Strategy" by Pixel Inspiration Ltd.