Business models that offer branding, entertainment and information, along with advertising will spur revenues, finds Frost & Sullivan

As brands and advertisers recognize the inherent shortcomings of traditional media, investments in newer marketing vehicles such as digital signage are increasing. Digital signage systems with higher resolution screens (4K), bigger displays (including video walls), and high-definition (HD) content, are becoming popular due to their ability to reach mass audiences and play engaging, targeted messages at the point of sale or a point of transit.

New analysis from Frost & Sullivan, Analysis of the Global Digital Signage Systems Market (https://www.frost.com/necf), finds that the market earned revenues of $1.53 billion in 2014 and estimates this to reach $3.23 billion by 2020.

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“Digital signage has generated interest as an effective medium for both advertising, as well as superior shopper engagement,” said Frost & Sullivan Digital Media Program Manager Aravindh Vanchesan. “Brands, marketers and retailers are actively exploring synergies between digital signage and cross-platform media tools such as mobile phones, tablets, kiosks and touchscreen displays, in order to rebrand stores and influence customer decisions.”

Tapping into the potential of omni-channel marketing is crucial given that solely ad-supported networks are unable to sell advertisement spots and maintain the consistent flow of ad dollars. While big-box retailers like Wal-Mart and Target have the financial and technical resources to capitalize on the advertising model, even under recessionary conditions, smaller retailers without similar market reach, operational scale, and clearly defined marketing objectives, struggle to sustain profits.

Adopting a hybrid approach is the key to navigating future economic downturns and minimizing risk. Rather than solely depending on ad revenues for sustainability, vendors must design networks to promote branding, merchandising and information dissemination.

“The digital signage ecosystem is complex, involving display vendors, software companies, media player manufacturers, ad agencies, audio-visual integrators, and tech support services,” explained Vanchesan. “Hence, the emergence of affordable turnkey bundled solutions, as well as integrators that take charge of the entire deployment from concept to ongoing maintenance, will be vital to usher in the next wave of growth in the global market.”

Analysis of the Global Digital Signage Systems Market is part of the Digital Media (http://www.digitalmedia.frost.com) Growth Partnership Service program. Frost & Sullivan’s related studies include: Global Engineering Information Management Solutions Market, Global Enterprise Rights Management Market, Global Marketing Automation Software Market, and Global Enterprise Video Encoders and Transcoders Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

For six decades, Frost & Sullivan has been world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success.

Frost & Sullivan

For six decades, Frost & Sullivan has been world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success.

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