Summary

    Digital Signage is a display technology that allows its users to display audio visuals into screen with efficient information and control. Its market is growing due to the high demands for businesses who want to go digital. Its market forecast shows great potential of income in its market. This technology is beneficial because it can attract more customers, distract customers, cost efficient, work efficient, and increase sales. Finally, research suggests that Digital Signages are very effective marketing tools if paired with great content for the users.

Digital Signage

    Our world is now in the digital age, which lets us have digital solutions. One of the best examples of digital solutions today is Digital Signages. This technology allows “a centrally controlled, content distribution platform by which to playback digital content to one or many displays or screens (Tripleplay.tv, 2020)”.  It can be used for the relaying of any number of types of information; live weather, news, TV, menus, flights, calendars, adverts for example. Therefore, digital signages can be used in various industries. To add, this type of tech received its popularity because it engages with the audience in a much more effective way than static signage. The moving images, visually attractive graphics, and efficient change in messages gets more of the people’s attention. Finally, it comes in different modes from complex to simple which allows the user to gauge based on customizable needs.

Digital Signage Market

    Given the spawn of the digital age; a demand for Digital Signage was created, thus creating the market for Digital Signage. The sum digital signage market was valued at USD 20.82 billion in 2019 and is projected to reach USD 29.63 billion by 2024, at a CAGR of 7.3% from 2019 to 2024 (Marketsandmarkets.com, 2019).

The growth of the market was attributed to technological advancement, increased customer base, and increased customer satisfaction. Furthermore, the software technology is consumed more than the hardware due to the long operation life of hardwares. On the other hand, increase in the demand for online advertisements are seen as a threat to lower the sales for Digital Signages. Despite the demands for online advertisements, Asia has the highest demand for Digital Signages.

    “The Digital Signage market was valued at USD 2654.96 million in 2019 and is expected to reach USD 6538.54 billion by 2025, at a CAGR of 8% over the forecast period 2020 – 2025” (Mordorintelligence.com, 2020). The Digital Signage market has one direction, and it is up.

The development in transport networks, public infrastructure, and new commercial buildings, particularly in developing economies is creating more opportunities in this market. This technology also eliminates frequent compatibility and interoperability issues between media players and displays.

Brand awareness and perception among the global leaders is expected to drive the growth of the market. However, digital signage boards require a high amount of electricity, indirectly affecting the maintenance costs that could hinder market growth.

    In another study, the global digital signage market is anticipated to reach USD 34.9 billion by 2026 (Marketstudyreport.com, 2018). This trend in forecast was based on the demand of different companies of how Digital signage helps to promote their products and services using creative ideas, thus reaching out to a large number of audiences at a single time.

To add, the use of audio visuals eliminated the need for printed materials, which thus reducing waste. In emphasis, different industries are already adopting this technology for its cost effectiveness and ease of content sharing. LCD, LED and projection are the most widely used display technology, but LCD has the highest market and LED has gained traction only.

Today

    The COVID 19 Pandemic has affected everyone in the world. To specify, one of the most affected aspects in the world is its finance. There are a lot of countries going to recessions now due to the high sanitary safety demand to prevent the spread of the pandemic. The COVID-19 pandemic has spread with alarming speed, infecting millions and bringing economic activity to a near-standstill (Worldbank.org, 2020). Therefore, most people have lost their jobs and have low spending power. But, there are also people who have benefited from the pandemic and have better income generated, like manufacturing companies of alcohol and face masks.

Benefits

(Univiewlcd.com, 2020)

  • Premium components are cost-effectively built and assembled in China-based facilities, reducing at least 30% total cost.
  • High productivity guarantees that we’re able to fulfill your custom needs in a timely and efficient manner.
  • From conception to production, we can build solutions tailored to your needs, eliminating any hassle of a third party.
  • Products pass or exceed industry and international standards, such as CE, EMC, RoHs, PSE, VCCI, CB, UL, FCC, etc.
  • Technical Support and Free replacement parts within the warranty period, free technical support for life.

(Wright, 2018)

  • Customer are free to help themselves with the information provided in the display○ Display can be changed at a moment’s notice.
  • Display can be changed automatically○ Display attracts more attention for Passersby.
  • It provides greater recall and retention rates○ Helps in lowering perceived waiting time.
  • Analytics customizable to the customer’s needs and wants.

(Lauber, 2018)

  • Attention-Grabbing Display
  • Dynamic, Contextual Content Updates○ Cost-effective
  • Boosts Impulse Purchase Sales
  • Increases In-Store Digital/Social Media Presence

(McInerny, 2018)

  • Newspaper ads might run up to $7.39 per 1000 impressions, and more than $5.00 per 1000 for a radio ad, LED signs pull in 1000 impressions for merely $0.15.
  • This lower cost is magnified as LED signs are modular, allowing a business to easily enhance and update its content over time.
  • A study of small business owners revealed that 86% of business owners who had installed new signs saw new customers coming through the door, and around the same amount (83%) saw an uptick in sales.
  • For customers waiting in line, having interesting content to engage with and up-to-date information on which registers were available led to a 35% decrease in perceived wait time.
  • At POS, display screen advertising led to a 30% increase in sales for advertised brands.
  • The power of an LED sign comes from the way it exists on the border that conventional, highly effective forms of advertising like newspapers and billboards share with modern, digital marketing like Google and Facebook ads.
  • The SBA concluded that LED signs are by far the most effective and least costly form of advertising for small businesses, with reported increases in business up to 150%.
  • A University of Cincinnati study found LED signs offer an ROI as low as 3 months.
  • Businesses keep returning to the LED sign due to its effectiveness and flexibility, adjusting alongside their campaigns and other short-term needs.
  • Close to 80% of companies lease at least a portion of their equipment, with many leasing all of it, in order to not put down so much money up front.

(Blmtechnology.com, 2018)

 

  • Enhanced Engagement
  • Greater Satisfaction
  • More Impulse Purchases
  • Higher Growth
  • Additional Opportunities

Research Articles About Digital Signages

  • Digital signage as an opportunity to enhance the mall environment: a moderated mediation model. (Roux, Mahlangu, & Manetje, 2020)
  • There is ample evidence supporting the generalizability of the stimulus-organism-response framework in the retail field, with limited extensions to digital signage inside malls.
  • It was found that favourable perceptions of the mall environment is strongly associated with approach behaviours relative to the indirect effect of positive experienced emotions.
  • When shoppers’ enjoyment of hedonic content is factored in the model, low enjoyment of hedonic content shows an insignificant effect of digital signage on approach behaviours. However, for high enjoyment of hedonic content, this relationship is positive and significant.

Let me entertain you – Increasing overall store satisfaction through digital signage in retail waiting areas. (Garaus & Wagner, 2019)

  • This field experiment revealed that digital signage mounted at the checkout area of a grocery store positively influenced overall store satisfaction by distracting shoppers from monitoring queuing time.
  • The presence of a digital signage system reduced the perceived waiting time while also creating favorable waiting experiences. However, only the latter influenced store satisfaction.
  • This research highlights the importance of creating favorable waiting experiences.

Uses and Gratifications of Digital Signage and Relationships with User Interface. (Bae, Jun, & Hong, 2016)

 

  • We found convenient information, entertainment, and benefits to be motivational factors of DS uses and gratification.
  • These factors influenced the perceived affordance and active control of user interface.
  • Among user interface constructs, affordance affected active control, which in turn influenced user experiences of DS. In addition, this study found that the factor of benefits also directly influenced user experiences.
  • These results reveal important insights to DS researchers as well as to out-of-home advertisers and marketers.

Sources:

Blmtechnology.com (2018). Top 5 Benefits of Digital Signage. Retrieved from https://www.blmtechnology.com/company/blog/top-5-benefits-digital-signage/.

Garaus, M., & Wagner, U. (2019). Let me entertain you – Increasing overall store satisfaction through digital signage in retail waiting areas. Journal of Retailing & Consumer Services, 47, 331–338. https://doi-org.dlsu.idm.oclc.org/10.1016/j.jretconser.2018.12.008

Lauber, K. (2018). 5 Benefits of Digital Signage Solutions. Retrieved from https://www.starmicronics.com/blog/5-benefits-digital-signage-solutions/.

Marketsandmarkets.com (2019). Digital Signage Market. Retrieved from https://www.marketsandmarkets.com/Market-Reports/digital-signage-market-513.html?gclid=CjwKCAiA-_L9BRBQEiwA-bm5ftyPweJCCgHgsOk5fv8jgSUtBHoL-xSgjtN77OwOFbT1KEfuNs6AJhoCX2kQAvD_BwE.

Marketstudyreport.com (2018). Digital Signage Market. Retrieved from https://www.marketstudyreport.com/reports/digital-signage-market-by-display-technology-lcd-led-projection-by-type-digital-posters-kiosks-transparent-led-screens-video-screens-video-walls-by-component-hardware-software-services-by-installation-indoor-outdoor-by-end-use-banking-corporate-education-healthcare-retail-transportation-hospitality-government-others-by-regions-market-size-forecast-2017-2026?utm_source=GoogleAds&utm_medium=SemiconductorandElectronics&utm_campaign=Polaris-PPC&gclid=CjwKCAiA-_L9BRBQEiwA-bm5fmUGzBFcAPI5cSdTeiWo4cgwPTvRToMRCUma5kntHh50V0FmAO5iBBoCX8IQAvD_BwE

Mclnerny, D. (2018). Numbers Don’t Lie: The Stats Show the Cost-Effectiveness of Digital Signage. Retrieved from https://marketscale.com/industries/featured/numbers-dont-lie-the-stats-show-the-cost-effectiveness-of-digital-signage/.

Mordorintelligence.com (2020). Digital Signage Market Size- Growth, Trends, and Forecast. Retrieved from https://www.mordorintelligence.com/industry-reports/global-digital-signage-market-industry.

Roux, T., Mahlangu, S., & Manetje, T. (2020). Digital signage as an opportunity to enhance the mall environment: a moderated mediation model. International Journal of Retail & Distribution Management, 48(10), 1099–1119. https://doi-org.dlsu.idm.oclc.org/10.1108/IJRDM-10-2018-0220

Tripleplay.tv (2020). What is Digital Signage. Retrieved from https://tripleplay.tv/what-is-digital-signage/.

Univiewlcd.com (2020). Instant Benefits. Retrieved from https://www.univiewlcd.com/?s-asia&keyword=%2Bdigital%20%2Bsignage&device=c&gclid=CjwKCAiA-_L9BRBQEiwA-bm5ftYhzOIs8HtXp0Cjyk6T2WFmKFiwdtR6Mr_IJzCT8zJsudFac2HTNhoC5qQQAvD_BwE.

Worldbank.org (2020). The Global Economic Outlook During the COVID-19 Pandemic: A Changed World. Retrieved from https://www.worldbank.org/en/news/feature/2020/06/08/the-global-economic-outlook-during-the-covid-19-pandemic-a-changed-world.

Wright, L. (2018). The 7 Most Important Benefits of Digital Signage. Retrieved from https://www.promotion.tech/blog/7benefitsofdigitalsignage.