The Digital Signage ExpertPublished: September 1, 2010
Digital Signage Expo (DSE), the world’s largest International Tradeshow and Conference dedicated to digital signage, interactive technology and out-of-home networks, has announced the results of its Quarterly Business Barometer Survey for Q2 2010.
After a difficult second quarter, during which the economic recovery slowed in the United States and other countries, 97% of all survey participants in North America still remained positive about the future of the Digital Out-of-Home Industry – representing no significant overall change from Q1 2010.
For Q2, 59% or respondents indicated they felt “Very Positive” and 38% “Somewhat Positive” about the industry’s future.
As in past quarters, those most positive about the DOOH Industry varied across each of the three main groups of respondents, which included Technology/Content Providers (53% “very positive”), Advertising/Marketing Professionals (65% “very positive”), and End Users/OOH Network Operators (70% “very positive”).
DOOH Business Continues to Improve
In Q2 2010, 51% of End-User/Network Operators reported that their actual DOOH advertising revenues were “Higher” than in Q1 2010 — up 6%. Additionally, the trend line remains positive, as 2% more projected that their advertising revenues in Q3 2010 will be “higher” or “about the same” than the percentage who forecast an increase for Q2 2010.
Hottest Growth Categories
Technology/Content Provider respondents predicted that the hottest growth categories for DOOH in the next 12 months would include Retail (54%), Restaurant (38%), Education (35%), Transportation (31%) and Healthcare (30%). In addition, the number of new installations reported during the first two quarters remained nearly the same, with 45% of respondents indicating their installs were higher in Q1 and 46% in Q2.
End-User Dollars are Committed to DOOH
The commitment to install for the first time, add to, replace or upgrade current DS systems during the next 12 months is relatively unchanged from the previous quarter’s report, with 13% of end-user respondents indicating they’re installing DS for the first time and 68% adding to or replacing/upgrading their current systems, compared to 14% and 70% in Q1. The average planned installation size reported in Q2 was slightly more than in Q1, with 45% planning to install more than 100 screens and 51% planning to deploy fewer than 100 screens, versus 42% and 53% respectively in Q1. According to the sampling of end-users and network operators planning deployments, their projected investments during the next 12 months remained about the same from quarter to quarter, with 15% in Q1 planning to spend $1 million or more on digital signage products and services versus 14% in Q2.
Advertising Agency Buyers Recommending Higher Spend in DOOH
Slightly more than one-third (35%) of survey participants said their Q2 2010 ad spend was “Higher” than in Q1 2010, 5% more than reported in the previous quarter; moreover, another 57% reported that their ad spend remained “about the same,” for a total net improvement of 2% over the previous quarter. In addition, 69% forecast a “Higher” ad spend for Q3 2010. The top categories targeted for that investment, in rank order, are: Retail and Restaurant (tie), Arts/Entertainment/Recreation, Education Bar/Tavern/Nightclub and Healthcare.
“Despite a difficult second quarter, respondents to the DSE Q2 2010 Business Barometer remained upbeat about the future of the industry,” said Richard Lebovitz, Editorial Director for digitalsignageexpo.net. “The general outlook for the economy took a dive, but not the prospects for the industry, as the positive forecasts from each stakeholder group — end users/network operators, ad agencies/brand marketers and technology/content providers — represented in the survey indicate.”
To see the complete report, go to www.digitalsignageexpo.net or follow the link to http://www.digitalsignageexpo.net/Resources/Research/DSEBusinessBarometer.aspx
Source: DSE
These figures are really encouraging and I think that although the environment will remain challenging for at least 2011, things are improving and investment in digital signage will steadily grow. This will happen of course due to the reduction in investment required as the technology becomes more affordable.