Digital Signage: Opportunity In The Face Of Recession
It often seems that everywhere you turn the latest economic report shows weakening: higher home foreclosure rates a teetering financial system government bailouts lower gross domestic product the list goes on and on.
However a new report focused on digital signage shows robust growth in the number of displays sold in 2008 for use as digital signs and predicts that while the market may hit a rough spot next year significant growth will return in 2010 and beyond.
Despite an economic cold wind this year the digital signage market has remained strong and is due to grow with 1.1 million new displays being put to use in signage applications a 34 percent increase in display unit growth from last year according to the study from MultiMedia Intelligence.
The Scottsdale AZbased market research firm forecasts that by 2012 the digital signage market will account for the use of nearly 2.3 million digital displays. The report Network Digital Signage: Infrastructure Displays Software and Technology contends the effects of the global economic downturn will sap the growth in new digital signage hardware deployments next year but will resume a robust growth rate in 2010 turning in a doubledigit increase.
While the report and the general economy point to tougher times next year this should not be a signal for marketers to panic. Rather times like these demand reevaluation of marketing strategies tactics and budgets because its likely that old communications methods will no longer the right solution for todays economic reality.
Digital signage is likely to fare much better than traditional media during this reexamination for three reasons. First digital signage gives marketers the opportunity to reach consumers at or very near the point of sale. When and where shoppers are most likely to make a purchasing decision digital signage can be there to influence the buying decision. That fact alone makes digital signage an attractive alternative to traditional media.
Second digital signage can reduce expense and increase market responsiveness. Rather than making recurring purchases of printing services digital signs can be updated with a few keystrokes. A closely related added benefit is that by relying on digital signage rather than print marketers can be far more responsive to changing consumer desires and tap into those trends long before it would be possible to print distribute and display a traditional sign.
Third a slowing economy is likely to make digital signage systems and networks less expensive to deploy. If consumers pull back on spending next year display manufacturers that have been ramping up capacity to anticipated strong consumer demand for high definition televisions may find themselves exposed with excess capacity and product. Responding with lower unit prices will make deploying flat panels in digital signage applications less expensive.
For marketers facing a downturn in the economy digital signage offers an opportunity to be more effective with their messaging reaching shoppers where they make their purchasesand with their media budgets. A contracting economy should concentrate the minds and efforts of marketers on how they achieve their communications goals with limited resources and theres no better way to that than with digital signage.
About the writer: David Little is a digital signage enthusiast with 20 years of experience helping professionals use technology to more effectively communicate their unique marketing messages. He is the director of marketing for Keywest Technology in Lenexa KS a software development company specializing in systems for digital signage creation scheduling management and playback. For further digital signage insight from Keywest Technology download our Six Basic Digital Signage Applications white paper and case studies. Or visit our website for many helpful tips and examples on how digital signage can benefit your business.
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