Digital Signage and Ad Agencies: Can They Get Along? By Franklin Lucer At Isnare.com Ezine Articles

Most of the advertising agencies that produce the creative for digital signage networks have always cast a wary eye toward the medium. A large majority of ad houses still prefer to not get involved and put up resistance to avoid doing so. Even though the digital out-of-home media industry will survive splendidly if the agency drought continues, it will grow far more quickly with their involvement. The question is how to get them involved?

Despite advertising industry authorities such as Ad Age and AdWeek having heralded DOOH as the next major media purchase, there seems to be little interest from the creative houses. In today's article, we're going to take a closer look at this problem. We'll explore where the agencies are hiding and why out-of-home media may need to compete with conventional TV for their attention. I'll also describe some of the reservations that ad houses have regarding the digital signage medium.

Where Are The Agencies?

The trickle of agency interest in DOOH is growing, but slowly. This growth may be due in part to more internal pressure from their clients. It may also be due to better measurement capability from the technology. There is an increasing level of pressure on agency buyers to deliver a broader reach with better trackability to their clients. Unfortunately, there is still a significant lack of familiarity with the medium among the creative houses. That is likely to change soon.

Television broadcast media is becoming less effective each day. Meanwhile, the agencies are under more pressure than ever to deliver a responsive audience. This is the reason why digital signage is being heralded as the next territory for the advertising industry to explore. Ad executives might be reluctant to get involved today, but they will be forced into DOOH eventually. Until that happens, though, the signage industry's main competitor for attention seems to be television.

Grabbing Attention From Television

Several factors have contributed to the advertising industry's slow adoption of digital signage. Thus far, these factors have prevented the ad houses from making major media buys across the platform.

First, there is a long tradition of buying network time on television. Regardless of whether TV generates results that are consistent with a company's goals, nobody in an ad house loses their job for picking up a 15-second spot.

Second, the out-of-home media industry has not yet standardized a method for measuring an audience. Typically, advertisers are forced to rely upon foot traffic data for individual venues. By contrast, TV uses Nielsen ratings. While the Nielsen data is limited, it is widely accepted throughout the advertising industry.

Third, advertising executives know television. Many have spent decades becoming familiar with the medium and its nuances. When those executives look at digital signage as a possible media buy for their clients, they hesitate because they don't know what to expect.

Encouraging Ad Agency Involvement

So, if ad agencies are reluctant to dive headlong into DOOH, how should the out-of-home media industry convince them to get involved? Education is the first step. Advertising executives need to understand the enormous potential that digital signage offers to their clients. The ability of television spots to grab viewer attention is declining, especially with the popularity of TiVo and DVR. Meanwhile, the flat panels that occupy retail venues throughout the world are not only attracting shopper attention, but they're also generating a measurable response.

Ad agencies should be introduced to digital signage in a way that seems less intimidating to them. To be sure, it is a relatively new medium (at least, when compared to TV). However, DOOH is merely an extension of the dynamic created by television. Many of the same advertising rules apply. Agencies can make the transition from TV to digital signage more easily than many of them realize.

The out-of-home media and advertising industries have much to gain from partnering with each other to help their respective clients reach a wider audience. Fortunately, the momentum behind agency involvement is growing, but there remains a long road ahead.

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