Recent advances in hardware and instrumentation technology have allowed the possibility of deploying very large sensor arrays on structures. Exploiting the huge amount of data that can result in order to perform vibration-based structural health monitoring (SHM) is not a trivial task and requires research into a number of specific problems. In terms of pressing problems of interest, this paper discusses: the design and optimisation of appropriate sensor networks, efficient data reduction techniques, efficient and automated feature extraction methods, reliable methods to deal with environmental and operational variability, efficient training of machine learning techniques and multi-scale approaches for dealing with very local damage. The paper is a result of the ESF-S3T Eurocores project "Smart Sensing For Structural Health Monitoring" (S3HM) in which a consortium of academic partners from across Europe are attempting to address issues in the design of automated vibration-based SHM systems for structures.