ABOUT DIGITAL SIGNAGE
ABOUT DIGITAL SIGNAGE
Nowadays digital signage has a ubiquitous and visible nature to entertain, give information or advertise brandings, products, prices, promotions and services to target audiences. Due to growth trend on demand of digital signage in DOOH (Digital out-of-home) market which has a globally significant high growth, reveals the problem of decreasing of traditional OOH (Out-of-home) media, such as posters, light boxes, banners, boards, etc. which are less attractive and out-of-date, and exposes differentiations and benefits of digital signage to easier draw target audience’s attention, support real-time update content, evoke interactive trends and be cost-effective.
Business wire (2008) discovered that the global economy was uncertain because of the diminishing returns in the credit and financial markets which impacted to all businesses including the advertising industry. The economic slowdown aggravated a deeper and extended advertising downturn. However, outdoor advertising, which was called “out-of-home advertising”, which was a major part of advertising, was bucking the trend by shifting away from traditional media like radio, newspapers, magazine and television. Digital signage, which is a part of out-of-home advertising, is continuously widespread and appeared in everywhere to resist the downturn in advertising spending by offering a dynamic message to targeted audiences with an enhanced message impact.
One of the most important drivers affecting growth of digital signage is technology advancement which has helped marketing, retailers, entertainment companies, and many other organizations make dynamic, editorial and graphical content, deployed to anywhere. The advancement in technology along with the decreasing of input costs was making digital signage a profitable business proposition for advertisers. “Bluetooth” was an example of recent advancements in technology that is helping to make more attractiveness of the out-of-home advertising.
An increase in urbanization and growth of retail spaces, prospering tourism industry, changes in people’s lifestyles to spend more time out of homes, and enormous investment in transport infrastructure in emerging markets were other factors that drove the growth of the global digital signage market.
A new market study "Global Digital Signage, Dynamic Signage, Electronic Signage, Narrowcasting Market (2011 - 2016)" drawn up by Market sand Markets explained the global scenario of the digital signage system over the next five years, with an understanding of innovations in the digital signage market, technical advancements in advertisement will increase in demand because of increase in awareness and falling prices of displays. The retail industry was driven by aggressive advertising efforts to re-inspire consumer retail spending. Digital Signage Today (2015) published that the total digital signage market was expected to achieve S23.76 billion by 2020, at a CAGR of 8.18 percent during 2015-2020. In the same forecast with an announcement of Markets and Markets which revealed that expected growth of global digital signage market was approximately 62.40% increased from $14.63 billion in 2014 to $23.76 billion in 2020. Its rapid growth was expected from the increase in demand for commercial displays, increase in investments by companies for digital signage solutions development, acceptance from the government, and flourishing of the paperless concept and energy savings. Business Wire (2008) discovered the increasing adoption among an enlarged base of industrial sectors is an effective medium for decreasing costs of purchasing, installation and maintenance, and interactive advertising which also indicate well for the future of the market. Digital Signage Today (2015) reported there were ten brands which are promising and major players in the global digital signage market. They consist of NEC Display Solutions from Japan, Samsung Electronics Company from South Korea, LG Display Company from South Korea, Sharp Corporation from Japan, Sony Corporation from Japan, Panasonic Corporation from Japan, AU Corporation from Taiwan, Planar Systems from U.S., Adflow Networks from Canada, and Omnivex Corporation from Canada.
Davis (2015) described that the digital signage had been in use in business and commercial markets for more than twenty years. So the digital signage was nothing new. The trend of digital signage in 2015 was the increase in the adoption of technology. Continuously falling screen display prices affecting the decrease in the total cost of ownership and encouraging more visible installation and feasible deployment in various locations drive high growth of digital signage. The availability of large format displays with a super narrow bezel, lower power consumption, higher resolution, expanded bandwidth, more advanced signal processing and distribution, content management system ease of use were all contributing to the adoption of digital signage. Furthermore the emergence of new technology like 4K displays also enhanced digital signage up to the next level. In 2015, the trend of video wall displays with high resolution will enable close-up audience interaction and engagement.
ITU-T Technology Watch (2011) discovered that while the United States of America represented the largest regional market of digital signage, developing countries in Asia, Latin America and the Middle East also were seen as major contributors to the predicted uptake of digital signage. Regarding the prospering of the retail segment by economic growth, increasing incomes and rising standards of living in many countries, such as China, India, Singapore, Malaysia, Thailand, the UAE and Brazil, digital signage was more installed everywhere; in many public areas, in the areas of retail, in financial organizations, in hospitals, in hotels, in the transport segment, and others.
NYSE:IHS (2013) reported that the revenue of the digital signage market from China, Japan, the rest of Asia-Pacific and Latin America was forecasted to increase by approximately 5 percent each year beginning in 2015. Especially, some countries, such as Japan, South Korea, China and India that used a lot of digital signage, were the main contribution of the digital signage market in Asia. The advancement in technology offerings, data management and expansion of infrastructure would help the digital signage industry to continue positive momentum. Furthermore digital signage has became more intelligent with dynamic interfaces and smart content, the integration of real-time data management would further encouraged growth in revenue. This is due to many retailers were using digital signage solutions to target customers more efficiently, leading to increased well time, improved shopping experiences and a rise in sales, the integration of real-time data and predictive analytics into digital signage was making a big change and dispersal among retail segment.
An in depth study, NYSE:IHS (2013), discovered that many fast-food restaurants in Asia, also more known as Quick Service Restaurants (QSR) in the industry, were employing digital signage, for instance, replacing static sign boards with digital menu boards. The digital signage boards could promote better customer engagement than static sign boards by offering dynamic content and attractive visuals. Moreover, digital menu boards give companies an opportunity to sell smarter and better by promoting new items, upselling higher-margin products and reducing inventory by making immediate changes to content for promotions or advertising. Real time data feeds allowed managers to conduct automated interactions and make adjustments locally to manipulate in-store marketing messages to affect the customer purchase decisions and maximized benefit of sales. In other Corporate dimension, digital signage networks with live data feeds could improve efficiency in the organizations, increase the organization’s outcomes, promote unity and brand awareness, display performance indicators and allow for easier and broad connectivity across over organizations. Including digital signage used in the educational sector in Asia, digital signage became increasingly widespread throughout many universities to show educational information and news, upcoming event details and schedules, way-finding maps, building directories, and emergency messages to increase student and faculty safety.
Due to continuously falling display prices, digital displays have started to be installed in many public spaces (Müller, Wilmsmann, Exeler, Buzeck, Schmidt, Jay and Krüger, 2008). We can easily see digital signage in everywhere such as public transportation stations, shopping malls, restaurants, hotels, hospitals, banks, retail shops, entertainment places, schools & universities, government & institutes, etc. Digital signage solutions today would support companies in terms of business information and advertising. In Thailand, during a few years ago, there are many new SI (System Integrator) come up to focus on the digital signage market; moreover, existing SI also expand their product & service to capture market share in demand of digital signage.