Imagine a sophisticated digital signage system that was paid for by advertising before the system went live. If that sounds too good to be true, think again. Because that’s exactly what happened at the University of Utah bookstore in Salt Lake City.

"Before we installed the monitors,we were able to pay 100 percent of their cost from the revenue we gained from selling advertising," says Alex Parra, technology buyer for the bookstore.

The bookstore’s digital signage system consists of eight 40-inch, wall-mounted LCD monitors and two displays mounted on rolling carts that are moved around the store to feature new items or specials. Each of the wall-mounted displays cost about $2,000, including the screen, cabling, mounting brackets and labor. The two mobile systems cost $2,800 apiece. The software that runs the system and displays content was developed at the university and had cost the store $1,000. An Apple Mac mini runs the system, and the person who maintains the bookstore’s web site is in charge of the system’s content.

Solutions such as this show that digital signage is coming of age, in education as well as in other markets. iSuppli's Signage & Professional Market Tracker pegged the education signage market at $308 million in 2007, and projects it will expand to $1.2 billion by 2011. During the same period, the overall market is projected to expand from $2.1 billion to $14.6 billion.

These figures tell a simple story: Solution providers who are not targeting the signage market in general, and the college market in particular, are missing out on a very good thing.

A Captive Audience
Digital signage is the placing of flat-screen displays in a public environment. The messages on the screens can be changed quickly and relatively easily. Solutions include display hardware such as plasma and LCD screens and video walls, as well as audio systems, network infrastructure, screen mounts and servers. Software is used to create, schedule, distribute and run content, and provide security.

The appeal of digital signage to businesses is easy to understand: When used appropriately, it is a great way to attract the attention of a captive audience. "When you have an audience in a facility or store, with digital signage you can focus on that person. They can’t change the channel.And you can focus your advertising on a particular product," notes David Christiano, president of United Service Source Inc. (USSI), a solution integrator who provides nationwide installation and maintenance services to solution providers.

The University of Utah bookstore found that digital signage can generate considerable revenue. In fact, the system has generated so much advertising that the bookstore has hired a fulltime employee to market the system.

Demand Is Growing
Several factors are driving the demand for digital signage. Falling display prices is one element, and the high cost of printed materials is another. In the U.S., the retail industry alone spends more than $5 billion annually on printed promotional signage and graphics. Digital signage can eliminate many of those costs, while providing a more effective advertising medium.

The effectiveness of the technology as a marketing tool also helps sell it. At the University of Utah’s bookstore, the signage system has been successful at driving foot traffic to less visited parts of the store. Its computer department, for instance, is in a back corner, so some shoppers didn’t realize they could buy Apple computers and iPods at the store until they saw promotions on the digital signage system.

And the speed and ease of changing marketing messages is a major benefit.When the bookstore wants to promote an item or event, it is easy to quickly get these messages on the signage. Digital signage also has many applications on campus other than in bookstores. It provides menu information, news, entertainment and advertising in cafeterias; announces upcoming events in gymnasiums; and promotes flu vaccines at medical clinics. Digital signs can also be found in classrooms and are used by campus police for monitoring IP video surveillance.

Providing emergency and wayfarer information is another campus application, one growing in importance since the tragic spring 2007 killings at Virginia Tech. USSI is demonstrating a signage application that usually displays news, weather and events. During an emergency, the screens tell users what to do and where to go.

Irene Chow, senior vendor business manager of digital signage, Ingram Micro, notes that when it comes to signage solutions, one size doesn’t fit all. Some users might want a ceiling, wall or mobile mounting, for example, while others require elaborate video walls and other variations. Because of this, services opportunities abound, including consultation, ongoing content design, networking, installation, software and display- network maintenance.When a display network reaches a certain scale -- generally more than 10 large-format displays -- the sales cycle can run between six and 12 months.

The payoff is healthy profit margins, often in the 25 percent to 30 percent range. Signage can also provide entry to virgin territory. "Digital signage is a great way for solution providers to open up new markets," says Chow," and to develop their expertise in a market that is growing."

Signage at Ingram Micro
Want to learn more? Ingram Micro’s new Digital Signage Division conducts hands-on and remote training, while also fielding marketing specialists, category specialists, vendor managers, technical support staff and a growing number of cross-trained signage professionals, including a college-campus reseller team.

The new division has also teamed up with the Ingram Micro Services Network (IMSN) to leverage its digital signage expertise and to tap into the reach of USSI, an IMSN member and national installer of digital signage. USSI technicians will be available to help Ingram Micro solution providers with designing, deploying and servicing digital signage solutions throughout North America.