Ricoh to install massive wind/solar-powered electronic billboard in Times Square

Thanks to Yahoo for the news, but Engadget for the spiffy image (a mockup, granted, but I think it gets the point across):

Despite some of our arguments that digital billboards may in fact be a greener option than other forms of in-store and out-of-home marketing, there's always that one lingering issue... they use a lot of power, whereas static posters and non-backlit signs don't, once they're in place. Well, it looks like Ricoh is tackling that problem on a very large scale, as the billboard they're fixing to put into Times Square measures 47 feet (14 meters) high by 126 feet (38 meters) long. Its floodlights will be powered on site by 45 solar panels and four wind turbines. As the article notes:

The result will reduce carbon dioxide usage by 18 tons a year, [Ricoh Americas Corp. spokesman Russell Marchetta] said.

The office automation equipment and electronics supplier already has an electronic sign in Osaka, Japan, that is 100 percent solar- and wind-powered.

The first solar-powered billboard in the United States came last year when Pacific Gas and Electric erected one in San Francisco. in

The new billboard will wrap around the corner of Seventh Avenue and 42nd Street. The exact image is yet to be announced, though an artist's rendering with a dummy image has been released.

On days lacking enough solar or wind power, the sign will go un-illuminated, Marchetta said.

Ok, I'm a little confused here. The beginning of the article clearly states the billboard is electronic -- and honestly, could you see anything less than a giant electronic billboard flying in Times Square these days? However, the rest of the article says that the solar/wind generators are being used for backlighting. So it sounds like there might be some other portion that runs off of regular, more polluting electricity? Or maybe part of the sign will be electronic (and traditionally powered), but the larger portion that says Ricoh in the mockup above will be static and backlit by solar- and wind-powered lights.

Tags: digital signage, electronic billboards, out-of-home advertising

POPAI's introduction to digital signage webinar coming up on June 12th

This post probably won't be appropriate for 90% of the audience of this blog, considering that I know lots of you are already experts on all things digital signage. However, if you have a client, partner or other interested party that's starting to explore the exciting world of digital out-of-home media, POPAI's holding the first of what will be many "Digital Signage 101" or "Intro to Digital Signage" webinars on June 12th.

Specifically designed to help newcomers see past the industry hype and focus on the projects, business cases and best practices that have been successful in the real world, POPAI's Introduction to Digital Signage webinar is a great way to spend an hour of your time -- and only $50 -- to jump-start your understanding of what works and what doesn't in the digital signage world.


The topics we'll cover include:

• An introduction to the digital signage market with some basic market history and analysis,
• A look at some of the most common usage scenarios,
• An explanation of the components used in typical digital signage networks,
• A discussion of the benefits and drawbacks of using digital signage, and
• An examination of some of the most common pitfalls and problems that occur, and ways to avoid them in the first place.

So please join us on Thursday, June 12, 2008 at 1:00pm EDT

If you're interested, you can click here to sign up now!



Tags: digital signage, in-store TV, electronic billboards

Put a little green goodness in the digital signage world

In the film L.A. Story, Steve Martin plays a television weatherman whose life is chaos but finds truth when, backed by a haunting Enya score, an electronic billboard on the LA Freeway speaks to him, quoting Shakespeare and giving cryptic messages about the meaning of life. One of the film’s main ironies is the way the digital billboard offers more emotional comfort than any of the actual humans in Los Angeles.

Since the film came out in 1991, it’s not as though digital signage has had more great movie roles or even good celebrity press (though you can decide for yourself whether or not you'd like to see a future like that portrayed in Minority Report). While there are certainly people outside the industry who see great things for digital signage, hype and love of technology is not going to be enough to sustain the industry, in particular because it is such a public product. Here in Pittsburgh, recent debate about a proposed electronic billboard in our downtown area mobilized community groups against the project not because they objected on aesthetic grounds, but because neither the corporation proposing the sign nor the city government consulted the neighborhood about whether it fit with local development goals. Add in the fact that proper licensing and bureaucratic procedures weren’t followed, and you have a public relations mess.

There’s a lot to be said for making digital signage more congruent with community needs. And since sustainable, ecologically-sound design is on the rise, it seems pretty natural to suggest that the digital signage industry might want to align itself with the good and the green now. Here’s a laundry list of possibilities:

• Energy consumption: Present energy-saving possibilities up front, before consumers ask for it: Take advantage of newer LED technologies that adjust screen brightness to day and night conditions. Use newer components designed for longer lifer and lower energy consumption, some of which are free of heating and ventilation costs. Consider a backup power system to reduce impact on existing power networks. (Solar-powered systems are already in greater use outside the United States.)

• Low impact design: Consider simple design elements to “green” the impact of the digital sign: LED configurations can be tilted to reduce upward light pollution. Signs that “fit” the environment are often seen as community enhancements rather than detractions. Marketing teams could work more overtly with architects, builders, and city planners who have LEED certification or experience with environmental design.

• New technologies: For example, there are new greener light tape systems that provide accent or backlighting for POP displays. Using encapsulated phosphors to produce light without generating heat requires only a tiny amount of power and minimal operating costs. Other energy efficient backlighting systems are on their way to production.

• Green components: The tech industry is starting to heed consumer’s concerns about the manufacturing process, too: Although the components of digital signage are surprisingly less hazardous than most technology, consumers don’t know this. Creating within-industry standards and fact sheets about the carbon footprint of digital signage might be worth the up-front research. In terms of the computer elements, it is possible to build digital signs with components free of problematic elements like mercury, lead, and cadmium. (we see this in Apple’s move to more eco-friendly digital screens and the new Eco-TV). Even hard drives are going green. The industry has yet to examine the full feasibility of incorporating recycled components (metals, vinyl, rigid plastics, and inks) into commonly used sign materials.

• Community relations: Although organizations like the OAAA have been involved in public relations for years, more can be said about how digital signage enhances community safety, provides information, and disseminates news. Digital signs already provide law enforcement aid, disaster or emergency information, and new traffic routing. But there are more possibilities: Bus station shelters as kiosks with digital billboards can provide up-to-date info on bus arrival, traffic, and news. Making contributions to environmental and community causes also helps offset the carbon footprint of new digital signs and enhances the customer’s reputation. Promoting and engaging in environmental and educational projects fosters the industry’s image as a whole. Consider the informational kiosks explaining the Everglades Reclamation Project to local students and residents, giving them up-to-date and ongoing information about how the environmental project will affect their lives:

• Industry self-monitoring: The OAAA has developed a set of environmental standards for all types of outdoor signage, which is a great start, but the digital signage community could do more on its own: carbon footprint monitoring (including comparative data on the carbon footprint of alternative advertising methods, such as paper products, copy machines, and flyers), promotion of green manufacturing and production approaches, and even an LEED-type seal of approval are three possibilities.

I'm just scratching the surface of what's possible right now, let alone a few years into the future when electronic ink and other new technologies make electronic signs even greener. But the industry isn't doing itself any favors when it comes to capitalizing on going green. We have some great -- and unique -- advantages at our disposal. Let's use them!

Tags: digital signage, electronic billboards, green

CNN Money looks at Lamar's digital billboard aspirations

Inc. profiled Magic Media's digital billboard prowess in last month's (March '07) issue, and this month CNN Money is taking a look at Lamar Advertising, whose 150,000 static billboard network makes them the third largest OOH company in the country behind Clear Channel and CBS Outdoor. Their take:

A few years ago, [Lamar CEO Kevin Reilly Jr.] and his colleagues had an epiphany: Unlike other forms of media, the basic business of building walls on stilts
and selling ads on them wasn't under direct threat from the Internet. If anything, technology could help billboard operators like Lamar save money. By using digital technology and broadband connections, Lamar could stitch together a network in which a single ad could be displayed at multiple locations. And as prices for next-generation screens fell, Reilly figured, any billboard could be turned into a veritable Jumbotron: like my digital picture frame, multiple images can be rotated across the screen.

Nothing too new for those of us in the industry, but what I found particularly interesting were the few bits about their expansion plans:

So far, Lamar has 720 digital "faces" in 120 markets, which is a small
fraction of the company's overall reach but more than the 200 billboards installed so far by industry giant Clear Channel. Lamar plans to invest $100 million a year or so over the next five or six years to install up to 6,000 more digital billboards.

Citing the difficulty of turning a diverse set of billboards into a unified ad messaging platform, the expense of present-day technologies and the impact of our current economic uncertainty, Reilly noted that there are still numerous hurdles to overcome before digital billboards become as commonplace as their static brethren (and he didn't even mention legal/regulatory issues, which I know come up very frequently when towns and locales try to resist the bright lights of a fancy new electronic sign). Still, Reilly indicated that digital billboards present both a net cost savings and revenue boost, making them the biggest thing in the billboard industry in a long time, so it's likely that Lamar and its rivals will continue to invest heavily in the strategy in the coming years.

Technorati Tags: digital signage, electronic billboards

LA Times tries out 8-second spots on roadside billboards

These are heady days indeed for the digital billboard market. Even AdAge is jumping in with some news to report:

Los Angelenos plagued by traffic delays or seeking a productive roadside distraction will be able to catch exclusive news via 10 digital billboards placed across the city by Clear Channel Outdoor. The Los Angeles Times is the first newspaper to use the company's digital billboards and web-based interface for news alerts and branding.

The editorial content will be comprised of mostly regional sports, politics and entertainment stories, as well as promotions for local events the paper hosts annually, like next month's Festival of Books. "You're not likely to see a story about some breaking news that happened in Iraq. We're definitely focused more on signature pieces, content elements, blogs, columnists, stories, products and events that are unique to us," Mr. O'Laughlin said.

An eight-second spot will be displayed on the 10 boards [in the L.A. area] 70,910 times per week, reaching a combined total of 455,300 people per day, according to audited Daily Effective Circulation estimates. Mr. O'Laughlin said the company will be working with Clear Channel over the next 10 weeks to evaluate results and determine return on investment, before tweaking the boards at the end of May to update them for the Olympics and, later, the elections in the fall.

We've seen lots of reports about using the digital signs to display Amber Alerts and accident-related news, but this is the first time I think I've seen the screens used to display editorial content, even if it is a not-too-subtle attempt by the LA Times to re-state their relevancy in an age when print newspaper readership is in a death spiral. It's certainly an interesting idea, and if the results prove favorable, I expect to see lots of regional players adopt a similar plan.

Tags: digital billboards, electronic billboards, out-of-home advertising

Digital billboards get 2 thumbs up

On the heels of the Inc. article we mentioned yesterday comes some good news (for OOH advertisers, anyway) about the effectiveness of electronic billboards: they work, well. To begin with, MediaPost tells us that Arbitron just released the results of a study which concluded that:

• 80% of travelers said they think the billboards provide an important community service (such as Amber Alerts)
• 83% of viewers saying they recalled at least one out of nine advertisements in the test group
• 65% saying they recalled two
• 20% said they were motivated to visit a featured store after seeing an ad on a digital billboard
• 15% said they would visit a featured restaurant
• Roughly 90% of motorists said they paid attention to digital billboard ads at least some of the time (I'd like to think they were paying attention to the road the rest of the time, but they were probably talking on the phone, sending txt messages, ironing, etc.)
  

Additionally, another Arbitron study found that digital billboards actually benefit other media too, in one of those rare 1+1=3 situations. Specifically, "thirty-five percent of respondents were
reminded of a local radio station, and 28% noted a TV show to watch
because of digital billboard ads."

Tags: digital billboards, electronic billboards, out-of-home advertising

Inc. surveys the electronic billboard landscape

The March issue of Inc. Magazine is running an article about the rise of roadside electronic billboards (word of caution: they quoted me in it, so you know it can't be completely unbiased ;) . There's not a whole lot that will be new to followers of the industry, but it makes a pretty compelling story to those who might be unfamiliar with some of the benefits that digital signage can bring to the out-of-home advertising world. For example, for advertisers:

They are bright and eye-catching and can convey multiple marketing messages at once. Marketers can arrange to have computerized ads change with much greater frequency than typical outdoor ads, timing their message to the season, the day of the week, and even the time of day. For instance, Edina Realty used its billboards to promote a number of time-sensitive sales and special offers. Through trial and error, Edina found that people were more responsive to ads for lakefront cabins toward the end of the workweek. And as the housing market headed south, Edina moved to bolster homebuyers' confidence by celebrating the number of homes sold locally in a given month. In all, the brokerage updated its billboard messages 31 times over the course of the year.

And of course, for network owners:

Magic Media, a Bangor, Pennsylvania, company that owns more than 10,000 billboards around the country, says its 20 digital signs alone contribute 10 percent of its $30 million in annual revenue. Each digital sign produces $14,000 a month in revenue, typically from multiple advertisers, compared with $1,000 to $2,000 for traditional billboards, which serve only one advertiser. "My view is that over time all signs, all billboards, will go digital," says Magic Media CEO Jimmy McAndrew.

Jimmy is perhaps the most evangelical person I've come across when talking about electronic billboards, though if they're helping him rake in hundreds of thousands of additional dollars in revenue each year, I can understand why. Still, the idea that maybe all billboards will someday be digital seems hard to comprehend.

But in a couple of decades, maybe it'll be hard for that generation to comprehend how there were once signs that didn't move.

Tags: digital signage, electronic billboards

Paris is burning!

... or, I guess, crashing. And not the real city, either, just the big hotel and casino on the Las Vegas strip. Not much to say here, just some fun pics (courtesy of The Daily WTF).

Tags: digital signage, electronic billboards, digital billboards

The politically incorrect electronic billboard

Common sense or politically charged opinion? You decide (and bloglines users, it's worth the 30 seconds, so click this link to see)



I've seen some pretty funny stuff on roadside electronic billboards before, but this strikes a chord with me for some reason.

Tags: digital signage, electronic billboards

Digital billboards display Iowa Caucus results

According to MediaWeek, digital billboards in Iowa owned by companies such as Clear Channel Outdoor and Lamar Advertising are going to be displaying results of 2008 presidential caucus taking place today. Apparently, the updates will be run in between regularly programmed advertising.

It's pretty neat to see digital signage being incorporated into what will could be a historic election (we might see our first woman or African-American president). The 2008 election is unique in that technology is playing a larger role than it ever has before. Look no further than CNN's "YouTube Debates", the way that candidates like Hillary Clinton and Mike Huckabee are realizing gimmicky viral videos, or how Ron Paul's volunteer base used the Internet to raise $10 million in two days of "money bombs."

Placing updates on billboards most likely won't take the place of watching the local news, nor is it likely to effect anything like CNN's coverage. Yet -- in an ideal world -- it could increase the level of involvement on the part Iowans. Imagine someone who didn't necessarily plan on voting stopped at a red light and reading with resentment (or hopefulness) that a key candidate is in the lead. Will they be moved to act? Who knows. But at least they will be more informed. The use of rapidly-updated signage makes it just a little harder for people to bury their heads in the sand.

Tags: digital signage, electronic billboards

The battle over electronic billboard regulations continues

MediaBuyerPlanner has a as a nice and concise overview of the current round of regulations and legislation that has cropped up to handle the growing popularity of electronic billboards. Worth a read for anybody thinking of getting started in that side of the biz, or even for those folks who have (or manage) existing static billboards and are pondering the jump to digital.

The bottom line: the Feds aren't going to help you here, though they're unlikely to cause harm either. And even if the states to pass encompassing legislation that permits the use of roadside electronic displays, local municipalities will always have the ability to put the kibosh on digital billboard projects in their neighborhoods that don't meet their approval.

Tags: digital billboards, electronic billboards, digital signage

I'll tell you who's necessary!

Drat, apparently somebody has figured out my dastardly plan to engage existentialists in a provocative conversation about digital signage via roadside electronic billboards. As fellow blogger Eric at Backward Five notes,

On the way home today, I had to shake my head and think for a couple of seconds after seeing a display flashing me this message:

BECOME NECESSARY.

SEE BILL.

Of course, “become necessary” was the end of a longer sentence. But for a moment, I wondered if I was having a real-life LA Story experience.

“Am I not necessary already? And if not, who on earth is Bill and how’s he going to help?”

I’ve paid some attention to the new digital displays, because they’re hard to ignore, but I haven’t thought about the larger digital signage issues, like readability and safety. Thanks to Bill, I’ll start paying more attention.

Well Eric, I'm glad the message sunk in! I was a little worried that it would be too hard to communicate the benefits and drawbacks of digital signage to casual passers-by via short, cryptic messages on digital billboards, but clearly I was wrong. Since that worked so well, in fact, I've decided to move on to phase two of my plan and use skywriting to extol the virtues of self-service kiosks.

Tags: digital signage, electronic billboards

Clear Channel Brings High Def Billboard to NYC

It should come as no surprise that Clear Channel Spectacolor has chosen to debut a new, state-of-the-art digital billboard in New York City's Time Square. The company already owns and operates a number of the huge digital screens, as well as a network of smaller LCD screens at many of the subway entrances across New York City.

According to the official press release, "the new billboard branded 'Spectacolor HD' will boast the sharpest image quality of any digital billboard in the U.S. while also being the most technologically advanced. Spectacolor HD will be the first digital billboard in the world to run multiple advertiser spots in conjunction with streaming news, weather and live HD broadcasts provided exclusively from CNN, the most trusted source in news and information."

I think this is genuinely one time when the "that's awesome!" factor that advertisers usually use on younger, more impressionable audiences may work with adult audiences as well. I work in NYC, and I've seen the billboard up close and it looks great. It's enough to make even the most skeptical of adult media consumers stop and gawk at least for a little while, and in Times Square that's no small feat considering there are tons of ads fighting for your attention.

This really is a great combination of quality technology and great content that gives something back to the viewer. The news feed from CNN and the weather updates are two features that people passing by will find genuinely useful, and as a result they'll be more likely to actually notice the ads displayed on the screen too.

Of course, the question of measuring effectiveness once again enters into the equation. In this case, there may not be much of a problem for Clear Channel because their technology is so far ahead of what's out there that they can charge a premium for ads placed on the screen. Thus, they'll almost certainly be able to meet their ROI targets. As for the advertisers... well, at this point I'll bet they're fighting each other for exposure on the new platform. Yes, it looks that good.

One other thing to consider is how much these displays cost, and whether or not they can start expanding into other metropolitan areas (Las Vegas, Chicago, Philadelphia, etc.). Although, even if they carry a hefty price tag (which I'm sure they do) as long as the response from advertisers and even viewers remains positive, my guess is that we'll be seeing more of these outside of the Big Apple sooner rather than later.

Tags: electronic billboards, digital signage, out-of-home advertising, Clear Channel

Federal Highway Administration OKs digital billboards; São Paolo thinks otherwise

Two interesting and contrasting stories about digital billboards have come out recently, and I thought it might be interesting to juxtapose them.

The first, is an article from MediaWeek's Digital Download blog which notes that, "clearing the way for out-of-home companies to build out more digital billboards, the Federal Highway Administration recently ruled that digital billboards are permissible and are not 'flashing' or 'intermittent.' The ruling recommended that digital boards display static images for four to 10 seconds, comparable to the industry practice of six to eight seconds. "

On the flip side we have this article from Advertising Age which reports that, "São Paulo made history by banning ads on billboards, neon signs and electronic panels, and now Rio de Janeiro is considering a similar measure." Additionally, "in the U.S., Vermont, Maine, Hawaii and Alaska all have long-standing policies forbidding outdoor ads, and legislators in Austin, Texas, and San Francisco have explored similar bans."

It's no surprise that some places -- particularly those with a rich heritage or famed beauty -- are hesitant to allow digital billboards. It's only natural for them to want to protect their beauty and heritage, and many already feel that there are enough traditional billboards and other forms of OOH advertising out there. But does that mean they plan to root themselves in the past as their neighbors and the world around them embrace a new technology that is sure to become commonplace?

Many people actually find digital billboards to be more attractive than conventional ones, and they are sure to gain in popularity over the next several years. Ironically, they may even help to condense the kind of outdoor advertising sprawl that these locations find so unattractive: Since they are able to display multiple ads in a given time, advertisers that normally would have spread their ads out through other outdoor means can now just share the same display as the competition.

The ruling from the Federal Highway Administration is obviously good for the industry and it will allow for further advancement of outdoor digital advertising and alerts. Whether or not cities across the country will take their decision to heart or decide to limit or even ban the ads is another issue entirely. One factor that may come into play when individual cities decide whether to embrace more or less of the digital billboards is whether or not they will be too distracting to drivers, or whether they should be used in more or less populous areas. The FHA may say that the signs aren't distracting enough to cause accidents, anecdotally that might not be true. Needless to say, while having ads that change every couple seconds is a good thing for advertisers (because people notice the ads more), it might also be a bad thing if they aren't paying enough attention to the road (because people notice the ads more).

Tags: electronic billboards, digital signage, out-of-home advertising

Clear Channel adds more electronic billboards

Trying to extend their lead over Lamar's digital billboard network, Clear Channel announced that they'll be adding even more screens to their empire, further solidifying their position as the current industry leader. With a total of 76 of the large, expensive LED billboards installed since the first of the year, Clear Channel has now invested tens of millions of dollars in modernizing their static billboard empire.

I'd love to know what they expect their time-to-positive-ROI will be, but one thing's for sure: they obviously expect the ability to rotate through multiple spots to pay big dividends.

Tags: electronic billboards, out-of-home advertising, digital signage

Mobile Impact Ads puts scrolling billboards on trucks

I'm really starting to wonder how much motion is going to be allowable on the roads, and whether or not we'll soon be awash in a sea of moving, mobile advertising. While I don't have anything against electronic billboards, for example, I do know from driving down the Las Vegas strip that putting a lot of them in close quarters makes for some very distracting driving (damned Cirque du Soleil ads!). But when you start talking about putting moving ads onto cars, trucks and buses that are themselves moving, that's another story entirely.

Sure, by this point we've all seen cars and buses wrapped in vinyl graphics advertising some department store, movie or other upcoming event. And of course trucks have had logos painted onto their sides for close to a century now. But up to this point, the graphics have been static, with the only motion coming from the vehicles themselves. But Mobile Impact Ads is starting to change that, and having seen one of their trucks on the road, I'm starting to wonder if an ad could be a little too eye-catching.

Have you ever driven down the road behind somebody with an in-car TV? While they might be a God-send for parents taking their kids on a long road trip, I have to admit that I find the little screens distracting, and my eye is frequently caught by the little flecks of movement coming from the screens. Now imagine that instead of a tiny screen, you have a 6x8' billboard. They're not constantly animated, but the images changed about once every 15 seconds by my count, and that was enough to make sure that I turned my head a little every time it happened.

I've seen a few half-hearted attempts to mount a digital screen on the side of a truck to show advertisements to passing motorists, but thankfully nobody has really taken that idea to its full potential yet. But surely somebody will try (until local law enforcement tells them to cut it out :)

Will some new advertising innovation eventually prove to be unsafe for drivers, or will we just continue to adapt and get more proficient at tuning out distractions behind the wheel?

Tags: mobile advertising, digital signage, electronic billboards

New research suggests outdoor electronic billboards are safe

There's been an ongoing debate over the safety of electronic billboards, and the latest research from the Foundation for Outdoor Advertising Research and Education (as reported in this article at Media Buyer Planner) suggest that digital billboards are no less safe than their traditional counterparts:

Tantala Associates, a consulting engineering firm, found no statistical relationship between digital boards and traffic accidents after examining traffic and accident data near all seven existing digital billboards in Cuyahoga County, Ohio, over a period of 18 months before and after the billboards were converted to digital.

A second study conducted by the Center for Automotive Safety Research at Virginia Tech's Transportation Institute concluded that digital boards were "safety neutral," based on a study of eye glance movements of 36 drivers in specially-equipped cars in Cleveland.

Results showed no differences in the overall glance patterns or frequency of glances between digital and traditional boards. Although drivers took longer glances in the direction of digital billboards, the mean glance length time was less than one second, generally considered to be an acceptable amount of time for a glance away from the forward roadway.

My biggest complaint with the study is that it doesn't seem like 36 drivers is a big enough sample to draw broad-sweeping conclusions from. I'd want to see a few hundred across a wider range of driving conditions, since traditional billboards are everywhere, whereas electronic billboards are clustered in only high traffic, high ambient-light, urban areas right now.

Also, while the OAAA (FOARE's parent organization) is a not-for-profit industry group, it's certainly possible that their desire to have positive results influenced the outcome of the study. I'd like to see a driver or public safety advocacy group run the same study and see if they yield the same result.

My gut feeling is that while electronic billboards are a lot more eye catching than their static counterparts, that doesn't necessarily mean that they're less safe. I can see the argument there, though, and I'll wager that placement, brightness levels and the content on the screens will have a much larger impact on driver safety than the mere difference between electronic and traditional billboards alone.

Tags: electronic billboards, digital signage, out-of-home advertising

Lamar expands its electronic billboard network

While Clear Channel Outdoor has been stealing most of the lime light in recent outdoor electronic billboard arena lately, Lamar fought back a few weeks ago, announcing it would be increasing its outdoor electronic billboard presence to over 600 displays in operation by year's end, according to this blurb from MediaPost:

Outdoor division president Sean Reilly announced these plans at the Wachovia Securities 2007 Nantucket Equity Conference. That's about 150 or 33% more billboards than are currently in operation. Reilly added that whereas digital revenues represented 2% of the company's revenues in 2006, by May of this year, they represented about 5% of the total so far.

While 5% may still sound like peanuts, keep in mind that Lamar did about $1.12 Billion in 2006, so they're hoping to make in excess of $50 million on their 600-sign network this year. Even assuming that they had all 600 billboards operational by Jan 1 (6 months ago), that would represent about $83,000/sign/year, or just under $7,000/sign/month. When you consider that Clear Channel has been rotating 6 to 8 ads on every screen (and assuming that Lamar did about the same), that would suggest they could charge just under $1,200 per ad per screen per month, which seems pretty reasonable to me.

The trick for both Clear Channel and Lamar right now is figuring out how much cash to spend on the initial build out while the cost of electronic billboards remains high. Because of the large initial capital expense, only the most profitable locations can justify these electronic signs right now, and while both Lamar and Clear Channel certainly know which of their locations produce the right numbers, as we continue to go forward, the question of when and where to expand the network will become more difficult.

Tags: electronic billboards, Lamar, out-of-home advertising

More fuel for the roadside electronic billboard fire

It's no surprise that the debate over electronic billboards has moved to Detroit, the auto capital of the US. According to this article in the Detroit News, the usual arguments are being brought up by the usual suspects -- advertisers drooling over the prospect of serving up five or six ads in the space of one, and making changes instantaneously, governments and safety groups worrying about the impact on driver safety and decrying the additional visual clutter. In fact, the clip wouldn't be worth writing about except that I did learn this:

Detroit should brace for Las Vegas-style eyesores that could lead to traffic accidents, said Kevin Fry, president of Scenic America, a Washington-based opponent of the new signs.

"Your eye is drawn to these things every six seconds it's like a giant PowerPoint in the sky," he said. Fry said the billboards are likely to distract drivers from the road for more than two seconds -- the amount of time some studies have shown is dangerous for motorists to look at cell phones or iPods.

Ok, technically I learned two things. First, there's an anti-signage lobbying group called Scenic America, and second, billboards have to make their statement in less than two seconds. This short time frame is in keeping with P&G's study on the First Moment of Truth (FMOT), and also agrees with some of our own research on content use on digital signage (and specifically, retail media) networks.

My personal take on the situation is that in big cities, the march of roadside electronic billboards is unstoppable, though I can certainly see smaller municipalities banning them much as they've banned static roadside signage. Millions of drivers make their way down the Las Vegas strip or through Times Square without incident every year, and those areas are far more cluttered than the average road will ever be. So it seems like some amount of regulation (for things like brightness and animation, which certainly could cause accidents), and driver education/experience will probably make these devices no more dangerous than the typical static billboard.

Tags: electronic billboards, digital signage, out-of-home advertising

Clear Channel expanding their electronic billboard network

MediaPost notes that Clear Channel continues to expand their outdoor billboard network, installing digital billboards in four new markets: Akron and Columbus, Ohio, Memphis, Tennessee and Wichita, Kansas. This builds upon Clear Channel's existing installed base of six markets, which was their stated goal for the end of 2006. The additions bring Clear Channel's network to a total of 10 markets, all of which are near major, high-traffic road ways that can deliver the number of impressions needed to make the signs worthwhile. The company's new goal is to reach at least 100 digital billboards in approximately 20 markets by the end of 2007, suggesting that the screens to have a positive ROI in a pretty reasonable time frame since they're deploying more of them.

Given that the screens have cost an average of $500K apiece to purchase and install, the firm expects to spend at least $50 M in the immediate future to solidify their position as a leader in outdoor electronic billboards. Amazingly, they even plan to use the roadside displays as something of a tourist attraction at at least one location, in what's being described as one of the, "most ambitious digital outdoor ad initiatives ever conceived" by MediaPost. A signage network in the downtown area of the pre-planned "city center" at Westgate, a suburb of Phoenix, Arizona, will be built and operated by Clear Channel Spectacolor, and will include 30 electronic signs of various sizes, including some that are 100 feet tall.

I guess we'll soon get to see if it really is possible to build a new Times Square in an arbitrary location and have it become an advertising mecca. Somehow I don't think that the folks in the Phoenix suburbs really understand what they're getting into from that end of the deal, but the Westgate facility is expected to generate a considerable amount of tourist shopping thanks to its half million square feet of retail space and sports arena.

Tags: Clear Channel, electronic billboards, digital billboards