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		<title>Why Are We So Enamored with Ad-Driven Digital Signage Networks?</title>
		<description>Discuss Why Are We So Enamored with Ad-Driven Digital Signage Networks?</description>
		<link>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks</link>
		<lastBuildDate>Fri, 03 Apr 2026 23:17:47 +0000</lastBuildDate>
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			<title>Jason Goldberg says:</title>
			<link>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1285</link>
			<description><![CDATA[Sorry to be so late in discovering this thread.
I can certainly imagine lots of vertical markets where an ad driven model does make sense, but let me just echo the sentaments of those that point out that advertising isn't the only viable model.
I chuckled recently when retailcustomerexpereince.com published an article that basically concluded that retail digital signage had finally arrived because Walmart had announced some advertising success data for their "new" network.
I was surprised to read that digital displays had just arrived since I could walk my clients stores and count hundred of thousands of digital signage installs just in my little corner of the retail world. I ended up blogging a counterpoint. http://retailgeek.com/2010/07/22/walmart-digital-merchandising-statistics-dont-trust-an-ad-man/
I have no problem with ad-based business models, more power to you guys. But it's not the only economic model, and IMHO for retail it's not the best model.]]></description>
			<dc:creator>Jason Goldberg</dc:creator>
			<pubDate>Fri, 30 Jul 2010 18:06:01 +0000</pubDate>
			<guid>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1285</guid>
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			<title>Nikos Acuna says:</title>
			<link>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1284</link>
			<description><![CDATA[The conversation always seems to touch on meaningful audience targeting. The retail environment is always an ideal place to push relevant content. Adding relevance and recency to reach and frequency is what advertisers value. There are still steep challenges in the entire space when it comes to measurement and accountability, proof of play reporting, aggregated data assessments, and pricing campaigns across multiple networks with effectiveness and value-efficiency. To me, it's really a fight to garner the most sophisticated toolset that connects brands to audiences in meaningful ways. Then networks won't have to bang there heads against the wall trying to figure out how to sell local and national ads on their digital signage network.]]></description>
			<dc:creator>Nikos Acuna</dc:creator>
			<pubDate>Tue, 13 Jul 2010 18:25:54 +0000</pubDate>
			<guid>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1284</guid>
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			<title>christian says:</title>
			<link>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1283</link>
			<description><![CDATA[I think you need both national/regional and local advertising to succeed in the current climate surrounding digital signage.]]></description>
			<dc:creator>christian</dc:creator>
			<pubDate>Thu, 08 Jul 2010 12:41:50 +0000</pubDate>
			<guid>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1283</guid>
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			<title>Thomas Dockter says:</title>
			<link>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1282</link>
			<description><![CDATA[For the cost sensitive local ad market it would be good idea to copy from the web site industry. Give customers a choice of well designed templates and automate the design process to the max. Go to people like squarespace.com and look what is possible today by automated processes.]]></description>
			<dc:creator>Thomas Dockter</dc:creator>
			<pubDate>Fri, 02 Jul 2010 18:41:39 +0000</pubDate>
			<guid>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1282</guid>
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			<title>Bill Gerba says:</title>
			<link>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1281</link>
			<description><![CDATA[I agree with the mysterious bbdd. Going the local advertising route can be extremely lucrative. But you almost **need** to have a local ad sales force (I've never seen it done in a centralized fashion for digital signage), as well as the content design and related services he mentioned.
Because of this, the local ad route is somewhat manpower intensive, and consequently doesn't scale as well as the mythical all regional/national network approach would if anybody could actually make it work the way it's supposed to.
I also agree with bbdd: Even the most efficient local ad network would benefit from being able to show regional or national ads on excess inventory, just to provide a source of revenue that doesn't involve owning every step of the ad creation and management process.]]></description>
			<dc:creator>Bill Gerba</dc:creator>
			<pubDate>Mon, 28 Jun 2010 19:09:34 +0000</pubDate>
			<guid>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1281</guid>
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			<title>bbdd says:</title>
			<link>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1280</link>
			<description><![CDATA[The local ad-driven model is a viable one, but requires a much more oehands on approach than with national advertisers. Local advertisers need a lot more hand-holding as far as content design, customer service, and billing. No problem, you say, until you realize you need to sell a much larger quantity of advertising due to the lower price-point that local sales demand. This, in turn, means a larger sales staff.
Personally, I think you need both national/regional and local advertising to succeed in the current climate surrounding digital signage. This means you are going to need the trifecta of a large (yet effective) sales staff, a nationwide network with different categories of venues, and an administrative team to tie it all together. Not an easy puzzle to assemble.]]></description>
			<dc:creator>bbdd</dc:creator>
			<pubDate>Mon, 28 Jun 2010 18:58:31 +0000</pubDate>
			<guid>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1280</guid>
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			<title>Jeff Farrell says:</title>
			<link>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1279</link>
			<description><![CDATA[As one who has studied advertising over the years and DS for the past few years, something has not seemed quite right about an ad-driven network; Thus my reluctance to invest in this type of DS.
However, does anybody see the local ad market to be a much better model than the model which panders to regional or national advertisers? I have seen some success with this, but I am very leery. And, it always requires the DS to be placed in third-party establishments. Would I be better off to purchase vending machines? (Much respect to those business owners, but no, not really)]]></description>
			<dc:creator>Jeff Farrell</dc:creator>
			<pubDate>Sat, 26 Jun 2010 02:52:45 +0000</pubDate>
			<guid>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1279</guid>
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			<title>Chuck Gose says:</title>
			<link>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1278</link>
			<description><![CDATA[I'm curious Dean exactly which part of my comment do you disagree with? That shows aren't paying attention to internal networks or that they are a big invisible piece of the digital signage pie?]]></description>
			<dc:creator>Chuck Gose</dc:creator>
			<pubDate>Fri, 25 Jun 2010 16:36:14 +0000</pubDate>
			<guid>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1278</guid>
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			<title>Dean Bowman says:</title>
			<link>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1277</link>
			<description><![CDATA[Interesting comments all around.
Chuck I disagree with you regarding internal networks. All due respect Chuck, I have lived and lost those wars already since 2005. I do enjoy your comments.
7-11
Couch Tard
Chevron
MacyTMs
Several medical groups I have been involved with over the past two years.
None would invest in their own network.
Still have not to this day.
Why should they when some upstart will spend their money to fail and teach the corporate world the pitfalls of a new technology.
They may or may not follow Wal-Mart after it becomes profitable.
I as many believed the ad world would respond and the fact that they have not coupled with "The Great Recession" is kind of a death blow to many small companies.
Now the reality of a contraction of the capital markets will separate the future from the past of this industry.
I believe there is a contraction in the "Friends and Family" money as well so we will see fewer new entries.
The strong will survive and live to help create the next generation.]]></description>
			<dc:creator>Dean Bowman</dc:creator>
			<pubDate>Fri, 25 Jun 2010 14:24:52 +0000</pubDate>
			<guid>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1277</guid>
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			<title>Bill Gerba says:</title>
			<link>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1276</link>
			<description><![CDATA[I think bbdd (whomever that is) said it best above:
"\\You need to be a sales organization using digital signage as just another delivery mechanism for your product.\\"
I agree 100%. If you've solved the sales problem in a unique and viable way, virtually every other aspect of network design, implementation and management can be outsourced and you'll still do well.]]></description>
			<dc:creator>Bill Gerba</dc:creator>
			<pubDate>Fri, 25 Jun 2010 14:21:28 +0000</pubDate>
			<guid>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1276</guid>
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			<title>Thomas Dockter says:</title>
			<link>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1275</link>
			<description><![CDATA[Ed, you are absolutely right. DS in the retail environment is perfect as a sales tool. But the system (not the technology) has to be controlled by the retailer and not by some third party network operator. Showing advertising is not a business goal for a retailer. It is all about selling goods to customers. Why so often are retailers doing pilots and turning down the system afterwards? They believed the network operator that he will bring the big money - but without any real benefit for the retailers business (selling goods - just not forget).]]></description>
			<dc:creator>Thomas Dockter</dc:creator>
			<pubDate>Fri, 25 Jun 2010 11:25:46 +0000</pubDate>
			<guid>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1275</guid>
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			<title>Thomas Dockter says:</title>
			<link>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1274</link>
			<description><![CDATA[Ed, you are absolutely right. DS in the retail environment is perfect as a sales tool. But the system (not the technology) has to be controlled by the retailer and not by some third party network operator. Showing advertising is not a business goal for a retailer. It is all about selling goods to customers. Why so often are retailers doing pilots and turning down the system afterwards? They believed the network operator that he will bring the big money - but without any real benefit for the retailers business (selling goods - just not forget).]]></description>
			<dc:creator>Thomas Dockter</dc:creator>
			<pubDate>Fri, 25 Jun 2010 11:25:42 +0000</pubDate>
			<guid>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1274</guid>
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			<title>Ed Personius says:</title>
			<link>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1273</link>
			<description><![CDATA[A lot of what is being said here is right on. I see the industry dominated by hardware/software tech people, and not enough POS or Direct Marketing people. It's an issue compounded by the fact that many people in the Advertising Industry as a whole operate on very faulty premises. Advertising is not merely about "getting your name out there" or even exposure to the maximum number, or even about demographics. "Well then what IS it about?!!!" you may ask. It's about selling. Not memorability or mindshare or audience numbers. But then these generalities are what the Ad industry has peddled for 150 years, so why stop now. The Ad Industry is in serious trouble. There are no dominant media in growth mode today. The internet is not a medium, it is a place with multiple media and millions of channels. The Ad Industry doesn't understand it well, I don't care what anyone says. Witness the uproar over social media as proof; almost no one actually creates transactions with it. It's media that caters to the self-involved. It is mostly very obtuse and indirect, and I don't see the dots being connected to my satisfaction. Digital Signage needs to learn to sell product, and move customers to transaction. When more people in the industry learn how to use this medium to accomplish trackable SALES, it will become much more viable.]]></description>
			<dc:creator>Ed Personius</dc:creator>
			<pubDate>Fri, 25 Jun 2010 06:15:41 +0000</pubDate>
			<guid>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1273</guid>
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			<title>bbdd says:</title>
			<link>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1272</link>
			<description><![CDATA[If you are trying to be a digital signage network provider who sells advertising, YouTMre Doing It Wrong.,, You need to be a sales organization using digital signage as just another delivery mechanism for your product. You can even outsource the network operation, if you like. Try being an operator and outsourcing the sales side of the equation. Ugh.]]></description>
			<dc:creator>bbdd</dc:creator>
			<pubDate>Thu, 24 Jun 2010 23:20:07 +0000</pubDate>
			<guid>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1272</guid>
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			<title>Dave Haynes says:</title>
			<link>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1271</link>
			<description><![CDATA[I think we are all staggered by the steady stream of bright-eyed newbies to this sector who think selling ads is a walk in the park. Too many people get these confused looks when they're asked about CPMs and other basic stuff.
This may be the one time in my life I quote George W. Bush, but as he was prone to say in speeches, "It's hard work."
Most ad networks will fail because they are bad ideas, or "just OK" ideas, or even good ideas with bad execution or not enough working capital. BUT, there are people making real money on the ad side of this game. As Ken says, it is viable, but the people running it REALLY have to know media sales and be on their game.]]></description>
			<dc:creator>Dave Haynes</dc:creator>
			<pubDate>Thu, 24 Jun 2010 22:04:22 +0000</pubDate>
			<guid>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1271</guid>
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			<title>Ken Goldberg says:</title>
			<link>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1270</link>
			<description><![CDATA[Bill:
Good stuff as always. You ask a good question at the end of the post. To me, the hype is caused by a capital environment where people can raise money based upon a good pitch and some mixture of technology, success of others and new spin. The fact that PRN and WalMartTV were so successful was actually a disservice to everyone, because WalMart was the exception, and was pitched as the norm. SignStorey extracted a ridiculous amount of money from CBS just by looking kinda like PRN. (Looks are deceiving, I guess) Then everyone thought it was a piece of cake: Hang some screens, lose money on each install, make up for it with volume, and sell it to the greater fool. Ugh. The supply of greater fools dried up.
As Paul correctly points out, this isn't easy when you don't have a great value prop to sell the advertisers, or a relationship (like WalMart) that makes selling easy. And people entering the business without a deep understanding of how the advertising business works were doomed to failure. I see the right things happening out there now, so I don't think it is as doom-and-gloomy as others might. Realistic plans, adequate capital, the right team, and it can be done. It isn't the only model out there, but it IS viable.]]></description>
			<dc:creator>Ken Goldberg</dc:creator>
			<pubDate>Thu, 24 Jun 2010 21:14:28 +0000</pubDate>
			<guid>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1270</guid>
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			<title>Paul Flanigan says:</title>
			<link>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1269</link>
			<description><![CDATA[The problem lies in our "instant gratification culture" that we live in. It's just so easy to talk about, so easy to show bottom lines, so easy to show how you can get a piece of the pie. A while back, a network claimed to have you up and running within days, and seeing revenue within hours.
Not so fast.
But it's hard. Really friggin' hard. And you're going to have to spend A LOT of money and time before you realize any real financial surplus. Regardless of your physical setup, you, as a network end-user or operator, will forfeit something in order to realize revenue.
A network's success has to come from incremental revenue. Networks don't "pay for themselves." Some else does, just like everything.
I fully support the ad-drive network model. It's good that companies want to use your network to sell stuff. But you must be realistic about the time and money that goes into it.]]></description>
			<dc:creator>Paul Flanigan</dc:creator>
			<pubDate>Thu, 24 Jun 2010 18:51:02 +0000</pubDate>
			<guid>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1269</guid>
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			<title>Bill Gerba says:</title>
			<link>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1268</link>
			<description><![CDATA[Agreed, Chuck. I'm willing to bet that even in today's every-store-has-a-screen-or-three world internal and employee-facing networks are still the biggest source of new deployments (and maybe even total # of screens).]]></description>
			<dc:creator>Bill Gerba</dc:creator>
			<pubDate>Thu, 24 Jun 2010 18:42:13 +0000</pubDate>
			<guid>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1268</guid>
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			<title>Chuck Gose says:</title>
			<link>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1267</link>
			<description><![CDATA[The topic is frustrating for me, especially since my background is in building and managing internal networks for corporate communications.
So many of the digital signage industry events I've attended over the last several years never even talk about internal networks and yet they have to be a considerable percentage of the digital signage pie.]]></description>
			<dc:creator>Chuck Gose</dc:creator>
			<pubDate>Thu, 24 Jun 2010 18:34:55 +0000</pubDate>
			<guid>https://www.wirespring.com/30-legacy-blog-digital-signage-insider/767-why-are-we-so-enamored-with-ad-driven-digital-signage-networks#comment-1267</guid>
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