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Narrowcasting: The Opportunity for Networked Displays and In-Store TV

Overview and Outlook
The U.S. narrowcasting industry is poised for substantial growth over the next five years. CAP Ventures projects total industry revenue from displays, control/management software, integration, and advertising/network operation will approach $2 billion in 2006 from $388 million in 2002. (Figure 1 – Narrowcasting Industry Revenue (2002-2006))

CAP Ventures defines narrowcasting as digital delivery of visual content through a network of displays in an out-of-home setting that is centrally managed and controlled. Narrowcast networks can be highly targeted because the audience is tightly defined by time, place and activity. Network content can be for promotional, customer service, entertainment and/or operational applications. 

Depending on the type of network and application, key aspects of the narrowcasting value proposition include:

  • Visually stimulating – Eye-catching displays with content that holds viewers’ attention  
  • Targeted – Content that is relevant to the customer, geography, time and other factors often at the point of purchase (e.g. store, doctor’s office)  
  • Dynamic – Content that can be quickly changed  
  • Interactive – Customers can direct the content based on their interests  
  • Integrated – Content that can be linked to other information and systems

Key Market Segments

Narrowcast networks often target specific market segments and address the specific objectives of a business. Four key market segments include:

  • Retail – All firms and sites with the primary business of selling products and services to consumers (e.g. auto parts and accessories, general merchandise stores, specialty stores, office supplies)  
  • Hospitality – Firms including accommodation (hotels and motels), eating establishments and entertainment  
  • Services – Firms including retail services, financial services, and health services  
    Other public spaces – Firms and locations including airports, malls (public areas), education, and elevators in office buildings

The preceding is an excerpt from CAP Ventures’ multi-client study “Narrowcasting: The Opportunity for Networked Displays and In-Store TV.” To learn more about the study call Alison Hipp at ext. 126.


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