Digital Signage Advertising en Route to Becoming a Multi-Billion Dollar Industry
Out-of-Home Digital Display Networks to Generate $2.7 Billion in Advertising Revenue by 2013
| Source: Northern Sky Research (NSR)
CAMBRIDGE, MA--(Marketwire - April 29, 2008) - NSR today announced the release of its market
research and forecast report: "Global Market for Digital Signage." Focused
exclusively on networks consisting of digital displays used for third party
advertising, the report provides a study of the major verticals served by
these networks across all regions of the world. Data from over 200
companies forms a core of the research, and the report provides Excel
models that allow operators and advertisers to calculate their return on
investment (ROI) for Digital Signage networks.
Digital Signage networks have evolved from offshoots of business television
to corporate marketing mechanisms to an advertising medium today, which
leading international advertisers are paying serious attention to for
reaching customers as they spend more time away from, and indeed avoiding,
mainstream media. As the industry evolves its own sets of standards and
measurement of true audience impact grows, advertiser confidence will build
and revenues will grow at rates that NSR believes will mimic the growth of
online advertising during the past decade.
According to NSR the industry, which has the majority of deployments and
revenues globally from retail, hospitality, healthcare and transportation
verticals, is poised to grow from an estimated installed base of about
210,000 sites in 2007 to more than 850,000 sites during the period from
2008 to 2013. Though North America and Europe remain leaders in
deployments, countries such as China, Australia and India in the Asia
Pacific are witnessing tremendous growth and are estimated to reach the
scale of their early-adoptive counterparts over a five-year period.
Revenues from advertising, though hard to come by initially, have picked up
considerably with advertisers recognizing the impact of the medium on
consumers, especially in retail locations such as malls and supermarkets.
Here, once again, the global industry is expected to grow at a healthy rate
of about 18% from its current estimated figure of nearly $1 billion
annually in advertising revenue.
"We have all seen a screen outside of our homes at some point beaming
advertising content at us with the idea that we make our decisions at the
point of sale," stated Prashant Butani, Analyst for NSR and author of the
report. "However, despite an ROI model that is yet to be proven, companies
continue to deploy large networks, as advertisers that were once skeptical
are now more apt to divert a portion of their huge advertising budgets to a
medium that claims to be here to stay." This acceptance of the medium will
drive the industry past billion dollar figures in revenues from
advertising, sales of customer premises equipment as well as software over
the next five years.
When asked what makes this report different from other research efforts,
Butani added, "We, at NSR, pride ourselves on our forecast model that has
served the satellite, wireless and digital media markets for nearly a
decade. With this report we also incorporate expertise on calculating
return on investment, which adds to our forecasts addressing key verticals
across all regions of the world. Advertisers want to know what impact
advertising on such a network will have on their sales figures, and
entrepreneurs want to know when their network will break even. Both of
these concerns have been addressed with our spreadsheet models, which users
are free to tweak and develop based on their own estimates."
About the Report
"Global Market for Digital Signage" is a multi-client report now available
from NSR. The report forecasts the sites and revenues associated with the
Digital Signage market in each region, examines the business model behind
advertising-based Digital Signs and includes a breakdown of the elements of
the business pertaining to network operators. As additional tools for
business planners, spreadsheet models for calculating return on investment
for both operators and advertisers are included with the report. For
additional information on this report, including a full table of contents,
list of exhibits and executive summary, please visit www.nsr.com or call
NSR at 617-576-5771.
About NSR
NSR is an international market research and consulting firm specializing in
satellite and wireless technology and applications. NSR's primary areas of
expertise include emerging technology, IP applications, and broadcast
services. With extensive expertise in all regions and a number of
broadband sectors, NSR is a leading provider of in-depth market insight and
analyses.