Dilution of Mass Media Leads to Increased Demand for Digital Signage

In an era of booming consumerism, marketers’ task of effectively communicating with their target audience is paramount. As advertising rates continue to climb, media clutter and low audience attention spans have diluted the effectiveness of traditional print and television media. Consequently, in focusing on a more personalized target market, marketers have raised their spending on non-media channels such as digital signage, telemarketing, direct mail, and e-mail. While the ability of digital signage to enhance brand image using specific full motion video messages at opportune moments makes it a highly efficient medium, the increasing popularity of 'do not call' lists and e-mail spam filters further add to the enormous potential of this medium.

This Frost & Sullivan research service analyzes the North American digital signage markets, examining key drivers and challenges and offering recommendations to tackle them. The study also sizes, forecasts, and scrutinizes pricing trends and identifies market leaders, challengers, contenders, and emerging companies in each of the digital signage advertising, display, and software markets.

Creating Tailor-Made Content Can Ensure Better Impact of Digital Signage

As customers are unlikely to suspend their activities to watch lengthy commercials, content created for television has to be reworked for the digital signage medium. Moreover, the medium dictates that the messages be brief with minimal audio to be non-disruptive to both customers and employees.

"As advertisers doubt the ability of advertisements as brief as ten seconds to communicate brand personality, promotion rather than branding may dominate the digital signage medium in the short term," notes the analyst of this research.

Support for Event-Based Exposure May Increase Adoption

By supporting event-based exposure and sales, digital signage assures the advertiser of greater accountability. For example, by linking digital signage with price-checking devices, network owners can play advertisements related to the items that are being scanned. Likewise, radio frequency identification device (RFID) tags of products chosen and placed in shopping carts can prompt the relay of suitable target messages for the consumer.

Frost & Sullivan Growth Partnership Service

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• Recommending growth management strategies through continuous partnership

To maximize the potential for growth within a firm’s internal and external environment, Frost & Sullivan consultants can facilitate the creation of strategic programs that deliver improved market success. Frost & Sullivan’s strengths lie in combining strategic understanding with market expertise and applying these with absolute commitment to its clients’ growth.

Timely Market Metrics for Accurate Business Planning

As businesses in verticals such as retail, banking, transportation, and entertainment begin to consider deploying digital signage networks, network operators and display, software, and media player vendors must know the current state of the market to compete effectively. Market metrics in this research service cover market sizing, forecasts by merchandising, and advertising business models.

Analysis, Sizing, and Forecasting of Key Project Components of Digital Signage in Addition to those Digital Signage Advertising Markets and Overall Digital Signage System Markets

The displays and software markets for digital signage are analyzed in equal depth along with the digital signage advertising and digital signage system markets. This includes Market Engineering measurements, competitive structure, competitive analysis, pricing analysis, and market sizing and forecasting. In addition, the market for media player hardware and design, installation and networking services is also analyzed and forecast.

Competitive Analysis Map

A competitive analysis map based on the ability of vendors to penetrate markets provides a view into vendor strengths. Use of Frost & Sullivan's positioning map helps companies to better determine who their direct competitors are in the fragmented digital rights management (DRM) market. Additionally, it can be used as an independent view of the market as a sales tool when competing against another vendor trying to encroach upon your core competency area.

Market Drivers and Restraints-based Forecasting Model for Better Understanding of Forecast Components

Frost & Sullivan's unique forecasting model derived directly from market drivers and restraints offers valuable insights into the basis for future revenue forecasts. This insightful forecasting method enables readers to understand and better use projected revenue figures for business planning.

Challenges to Digital Signage and Strategies to Overcome them

The acceptance of digital signage by the advertising and media industry is not guaranteed. Issues such as the absence of media standards and measurement of return on investment (ROI) are a major hindrance. The research service critically examines these issues and suggests strategic recommendations.

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

By application - analysis across the following areas:

• Advertising markets
• Systems markets
• Display markets
• Software markets

Analysis across the following business models:

• Merchandising model
• Advertising model
• Client-funded networks
• Network-operator funded networks

The following technology is covered in this research:

• Digital signage: Digital signage is a network of displays that can be managed remotely and whose business model revolves around merchandising or advertising.