Diversifying into digital

One of your best customers rings you up and takes their normal order for banner printing work, some pop-up stands, and perhaps some illuminated lettering or a light box for their bi-annual re-brand. Then they ask what, for many smaller company’s in our industry, is a dreaded question: “Can you do me some digital signage as well?”

While the biggest sign-makers may have a range of options to choose from on their books in regards to digital signage, that can be turned around and delivered quickly complete, many smaller businesses will still have to answer, “no” to this now ever more common question. This trend has started to change significantly over the last two years, with more sign-makers establishing relationships with AV companies or specialised trade suppliers that they can subcontract the work out to. This latter option, while allowing for a “yes” answer, unfortunately still leaves the sign-maker with very little margin, leaving their subcontractor with the lions-share of the profits.

The next key stumbling block for many smaller sign-makers is ‘creative content’. This buzz word is another vital revenue stream when it comes supplying digital signage. You can install the screens, the software and media players needed to run them, and even networking for more advanced  systems that link across a customers chain of businesses—but that is a one off payment.

The real value when it comes to digital signage is being able to supply your customer time-and-again with creative design services to turn their marketing objectives into digital adverts to run on these systems. Once again this area of the ‘digital signage value chain’ has been largely snapped up by designers and marketeers—but does that have to be the case? The vast majority of sign shops have both creative and technical talent that could fulfil this need, and with a little bit of research, training, and guidance from trade suppliers, this could open up a new and steady revenue stream.

Training and research

While digital screens now account for more than 20 percent of advertising revenues across metropolitan centres such as London (source: Economist: “Sexy Signage”) it has been slow comparatively to take of in the UK market.

This looks to be changing though and according to a recent POPAI study, European digital signage installations are forecast to grow by 144 percent over the next three years, and show little sign of slowing down after that. And, according to IMS Research, the market will be worth $7bn (£4.64bn) in 2013 (source: IMS Research).

This trend has not gone unnoticed by many of the major organisations central to the UK sign and digital printing industry. Core to this group is annual trade exhibition Sign and Digital UK, the next instalment of which is due to take place at Birmingham’s NEC from April 30th to May 2nd . The event’s organisers, Faversham House Group, have announced that the 2013 show will see the launch of the new ‘Business Tour’, part of which will provide practical advice on how sign-makers can diversify and profitably add digital signage to their products and services.

“The possibilities with digital signage are endless and we’re only at the cusp of what is achievable. It’s an exciting time and we’re delighted to be showcasing this sector in our new Business Tour feature at the show this year,” says Rudi Blackett, Sign and Digital UK show director.

Talking to Blackett, he points out that while the majority of accessible digital signage solutions are targeted firmly at the retail sector, outdoor digital signage is quickly catching up and is set to make a much more serious impact over the next few years. He also points out that while the sign industry has been most strongly linked to retail, there are a number of other sectors which are tapping into the technology and could be targeted. These include media and advertising, banking and finance, travel and tourism, telecoms, hospitality, healthcare, lottery and betting, government, fast food, and fuel forecourts.

Blackett continues: “There are many benefits for incorporating digital signage. Information is always up to date and the content can be changed easily and inexpensively. The impact is undeniable as a moving image will always attract attention much more quickly than a static one.

“The systems today are also extremely flexible as they can be installed with just one screen or many, at one location or several and almost an infinite number of these screens can be linked nationally, locally or internationally using sophisticated hubs and software, controlled remotely if required.”

Getting some guidance

A key trade supplier that spans the world’s of ‘traditional’ and ‘digital’ sign-making is Fairfield Displays and Lighting, which has made a specially concerted effort over the last twelve months to evolve its digital signage products and service portfolio for sign-makers. The company has also reportedly beefed up its training facilities in this area, and can now walk sign-makers through every stage of a project from specification, to creative consultation, to installation and network implementation.

“Sign-makers are starting to become more comfortable and the new generation coming into the industry is far more IT literate. That said, many of our customers who buy traditional sign systems from us just don’t know where to start when they are asked about digital signage,” says Janice Fairfield, marketing manager for Fairfield Displays and Lighting.

She continues: “There has been a steadily growing uptake of digital posters driven by media players, but there only a very few are dipping their toe in the water with fully fledged network solutions.”

One of the very first trade suppliers to diversify into digital signage, Fairfield Displays has also reportedly made great strides to stay ahead of the curve when it comes to its portfolio. Their strategy focusses on being able to offer a reliable and comprehensive solutions package before demand takes off, making them ideally placed when it does.

 “Our packages are now much slicker and easier to purchase, which is in response to demands from our customer’s own clients for shorter turnaround times and ease-of-use,” adds Fairfield.

“Our new portfolio has also been created to cut down on any confusion, as there are several elements to consider such as screens, brackets, scheduling software, content software and so on. There are also loads of new screens coming on the market all the time, each of which need their own bits and pieces. The final element is that sign-maker’s often don’t know how to talk to their customers and sell digital signage. So, we have created a simple and effective system to educate our own customers, who can then go on to win jobs.”

Fairfield highlights that the key to diversifying into digital signage in a meaningful way is  knowing , ‘which questions to ask’ and then being able to, ‘steer customers in right direction’, commenting: “This will make it much more likely for the sign-maker to then make a sale.”

With this in mind, the company has created its Digital Displays brochure, which after having thoroughly reviewed it, really looks to be a ‘must-read’ for sign-makers who want to extend their offering.

She goes onto stress that getting the brief right is the single most important part of taking on a digital signage project. Once this is done, the sign-maker can come to a trade supplier like Fairfield Displays and be guided down different pathways. For instance, if its just pictures in a loop then they will suggest options from their digital poster range. But if there is a need for split screens, links to the internet, or a networked solution, then each will result in a different set of recommendations and options to choose from.

Fairfield concludes: “The money really is in installing the systems and then selling the customer content creation services on a repeat basis. We currently have around 50 customers a year from the traditional sign-making sector, which although small, is already a considerable growth in the market from previous years. We are confident about the future of the sector, we have spent a lot of time bundling together packages and buying in bulk, which means our trade price will always be better than a sign-maker could get direct.”

A final salient point that Fairfield makes is that the first sign-makers to wade into digital signage tended to source cheap tvs hooked up to PCs or basic media players, paying the price when the tvs started to experience ‘pixel death’ due to 24 hour use. She explains that, as a result, a key area of Fairfield Display’s educational programme and sales guidance is highlighting that you need industrial screens hooked to compatible technology to provide a professional and sustainable digital signage solution.

Creative collaboration

Another traditional signage system supplier that has made in-roads into this market is Eurostand Display. Speaking to its managing director, Gordon Neile, he makes some very interesting observations about the growth of digital signage as a sector and how sign-makers can tap into it.

“Traditional sign-makers are generally never going to be the makers or distributors of screens in all their forms, hence they need to concentrate on including in their range of products systems that allow the utilisation of the screens in conjunction with, or combined with, the physical sign or graphic,” says Neile.

“The motivation for offering the new range of iPad holders is the same as offering other systems in the Eurostand range that allow the use of digital media screens in conjunction with physical graphics—such as our portable Centro system that can hold Plasma, LCD and OLED screens,” he says, adding: “Communication using display methods today is a multimedia environment that utilises physical products, display systems, static graphics, screen media, and interactive media. Our resellers are graphics producers and our aim is to provide them with a range of products that help them sell more graphics. If resellers can provide their clients with systems that provide the capability to use all types of media delivery they are more likely to make a sale and hence print more graphics.”

Indeed, Apple’s recent fourth quarter earnings report claimed the company had sold a record 22.9 million iPads. Considering the number of other portable digital devices that are currently flooding the industry, this statistic is worth some serious consideration. These devices are increasingly being used in retail spaces, for event branding, visitor centres, and office interior environments—all of which are the primary areas of use for display graphics. This means that physical graphics and interactive units, such as iPads, can go hand-in-hand to deliver multimedia marketing messages.

Neile concludes: “At Eurostand we aim to supply quality innovative portable display systems to carry the communication method be it screen or graphic, hence the iPad holders are a logical extension to our range.

“We will continue to expand our digital product range be it holders or other portable products to allow the display of screen technology. We aim to widen our range based on the principal of providing resellers quality portable products that allow the display of physical graphics combined with the use of screen technology—if required.  As part of the DISQ Group this principal is applied to all our group members products be they modular exhibition stands, retail promotional displays or portable display products.”

On the up-and-up

Attending Screen Media Expo for the last few years, now set to be integrated into FESPA’s portfolio of shows, one thing has become clear—sign-makers are becoming a core target market for digital signage trade suppliers. Indeed, one company I saw exhibiting last year, DV Signage, has now developed a full portfolio of solutions just for our market and is actively targeting sign-makers with an open house set to take place from April 15th to 19th .

This trend is also confirmed by the aforementioned purchase of Screen Media Expo by FESPA. The latter is a wide-format print and display focussed organisation and so highlights that the same companies buying wide-format printers are also investing in digital signage solutions to meet the display needs of their customers. Sign and Digital UK’s new commitment to the sector only serves to reinforce the evidence for this trend further.

There is no doubt that the digital signage market is coming of age, and that it is now worth exponentially more than even this time last year. The fact that those on its supply and exhibition side of our industry are making big steps to address this momentum should be evidence enough to convince sign industry members to get their thinking caps on.

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