Digital signage, sometimes called electronic signage, refers to display technologies like LED walls (or video walls), projection and LCD monitors to vividly display webpages, videos, directions, restaurant menus, marketing messages or digital images. Digital signage functions in different settings — public spaces, museums, sporting arenas, churches, academic buildings, retail stores, corporate spaces and restaurants — to offer wayfinding, messaging, marketing and outdoor advertising.
The increasing demand for virtual displays is driving the growth of the digital signage market. Digital signage has multiple applications, primary of which is marketing. They are increasingly being used as a subset of the multichannel marketing strategy and provides unlimited marketing content, campaigns, and promotions. Thus, it can be affirmed that the current stream of virtualization with be marked with a significant contribution of the digital signage market.
The escalating demand of standalone digital signage products and video walls are contributing towards the growth of the digital signage market with an average CAGR of 8.2% globally. The highest growth is reported the Asia-Pacific region nearly touching double digits. By application, the commercial sector is estimated to contribute the most to the market growth. The second major market share would be held by the infrastructure industry, followed by the commercial sector (that is estimate to capture almost half of the market).
One of the key purposes of digital signage is to increase the visibility of messaging and enhance customer engagement. Thus, the growing retail industry has created demand for digital signage across the globe. A study suggests that the retailers in the UK have witnessed a surge in revenue following the adoption of digital signage. The standalone products dominate the market, however more rapid growth would be witnessed in the adoption of video walls.
Applications of Digital Signage
Reiterating, the use of digital signage is majorly evident in the commercial sector. Interactive screens catch the attention of the customers and can be used to repurpose the social media content in the form of in-store advertisement to drive sales. The technology can be leveraged to share product information and share product information. This is a great way to streamline the customer’s journey and upsell the products and services.
Digital signage technology is also enhancing the internal communication in corporate sector. They allow audiovisual integration and can be effectively used as welcome signage, announcement signage, KPI dashboard and real-time schedule management. LCD and LED displays can also be used to improve safety on office and factory floors.
Another industry witnessing the presence of digital signage is the hospitality sector. These can aid in enhancing the guest experience. From self-service kiosks, digital concierge stations, digital directories, and digital menu boards, digital signage can transform your establishment into a luxurious and tech-forward facility. These can also be used to display nearby attractions to promote secondary services such as guided tours, car rental services, doctor-on call, flower arrangement, and luggage storage. Further, restaurants can leverage digital menu boards to upsell and cross-sell menu items, advertise specials, and display nutritional information.
Digital signage technology can also contribute to the defense industry by streamlining operations, improving communication, and providing real –time updates of operational activities. They can also be used to track unit movements and supply levels. They are also useful for training purposes at military installations by displaying detailed instructions on how to operate specialized equipment and providing up-to-date weather forecast.
The application of digital signage also extend to the facilities that are used on the daily basis by the majority of the population including transportation. They improve travel experience by the use of digital signs, real-time tracking of traffic conditions, up-to-date travel information and more. In airports digital signage is used to streamline the boarding process. In railway stations they are used to display arrival and departure time and update service disruptions. In bus-stations they can be used to update bus schedules or advertise nearby businesses and attractions.
Challenges to the Digital Signage Market
Digital signage certainly is becoming increasingly popular in the current landscape. However, the initial installation of the digital signage system requires high investment. This is attributed to the cost of screens, media players, networks, and technician cost. Additionally, digital signage boards need a high amount of electricity, which indirectly affects maintenance costs. The cost is also a function of whom the company is targeting, and where it is communicating such as in public infrastructure, new commercial buildings, or transport networks.
However, when it comes to software, the costs can be relatively low. Furthermore, integrators of signage displays often overlook repair and maintenance, but all installations of displays require regular maintenance and upgrades. LCD screens, for instance, have a finite shelf life, which affects their durability in the end. Even commercial-grade screens, which are designed for prolonged running, eventually dim and need replacing, while environmental factors, such as dust, excessive UV light, and heat can reduce the lifespan of the TV. Vandalism and accidental impacts are also common problems for displays, and with many installations, these outages go undetected until scheduled maintenance takes place. This means that a screen can be out of action for weeks or even months before it’s noticed, wasting the initial investment as the screen is getting no views.