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You are here: Home > Business > Advertising > Digital Signage - Out-of-Home Advertising Gains Public Recognition |
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E-Folder - Digital Signage - Out-of-Home Advertising Gains Public Recognition
The concept of advertising with media outside of the home gained a good degree of notoriety Sunday in The Los Angeles Times with a major article by staff writer Alana Semuels. The 1,000-word article, "Now showing ve According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product ry near you...", makes a strong case for digital signage networks and advertising as well as other out-of-home media. In the article, Semuels identifies digital video recorders as a major culprit in diluting the frequency wit ; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug. Examples of combination products may in which traditional television commercials are viewed. As a result, advertisers are hungry for an effective substitute, and out-of-home ads appear to be the solution. Semuels elaborates on a major theme of several of my recen lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together. columns, namely every day more TV viewers are skipping past commercials with their DVRs, making in-store, out-of-home advertising all the more appealing. (Two of my earlier columns discussing the impact of DVRs on TV viewing here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe include: "Digital Signage Payoff: What Is A Challenge For TV May Be A Boon For Digital Signage Networks" and "Digital Signage Market Poised to Skyrocket.") According to the LA Times story, about 20 percent of U.S. d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations. Combination pro ouseholds now have digital video recorders. The ease with which viewers in these homes can skip past the commercials has a growing number of advertisers interested in out-of-home ads on flat panel displays near the point of s ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc le where they can influence shoppers making purchasing decisions. And, if they can't influence a particular buying decision, at least they can elevate brand awareness. Quoting San Francisco-based Premier Retail Networks, whi easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi ch has 200,000 screens in 6,500 stores nationwide, the article points out 42 percent of shoppers remember a brand they see on in-store screens, twice number for television commercials. t's no wonder then that a recent foreca nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically t from PQ Media Research indicates that spending on out-of-home advertising will grow 27.7 percent this year. The statistics, part of the company's "PQ Media Alternative Out-of-Home Media Forecast 2007-2011" report show the c and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ tegory to be among the fastest growing segments in the media industry. Last year, media spending on out-of-home advertising reached $1.69 billion, up 27 percent from the 2005. In fact, spending on out-of-home advertising has ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi grown at double-digit rates every year from 2001-2006 with a compounded annual growth rate of 22.6 percent, according to the PQ Media report. In discussing the reasons for the growth, Patrick Quinn, president and CEO of PQ M ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it. Following aspects would a dia said: "Unlike its mass media peers, alternative out-of-home advertising is impervious to channel or web surfing and is immune to audience fragmentation." PQ Media identified several factors driving the growth of out-of-h dd to the challenges in developing combination products: Which markets to tap where the combination products can do fairly well? Which combination prod me advertising, including:
cts are meaningful and rational? Which therapeutic categories to select? Which Combinations can address unmet needs of the patients? Do combin to and recall of these media are growing; tions increase the patient compliance? What would be the developing cost? How to tackle the risks encountered during combination product developmen advertising platforms that generate higher revenues than the conventional formats they replace. PQ Media divides out-of-home advertising into three categories: video advertising networks and screens; digital billb t? As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel ards and displays; and ambient advertising. The research firm has found video advertising networks is the largest category, accounting for 60 percent of all out-of-home ad spending. Spending on this category grew 28 percent i ping new procedures for reviewing their safety, efficacy and quality. Professional from academic institutions, pharmaceutical industries, health care indust 2006 to $1.01 billion with double-digit growth in four markets: in-theater, in-office, in-store and in-transit, according to the company. High-profile news articles, like the one from the LA Times, draw the public' y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products attention to this market. More importantly, this sort of coverage helps busy ad professionals focused on traditional media segments to notice the out-of-home advertising market. As these ad pros have their own "Ah-Hah" momen . As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de s thanks to these sorts of articles, it won't take too much effort to back up the perception that out-of-home advertising is a growing, important new segment. Research, such as that from PQ Media, makes it easy for out-of-hom elopment. They need to be wiser in analyzing the market trends and the regulatory requirements. Companies that provide selfless information through particip advertising to be taken seriously -and more importantly for ad buyers to consider it as a new part of their media mix. As they do, out-of-home advertising and digital signage are likely to enjoy even wider acceptance and use tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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