Out-of-Home Digital Display Networks to Generate $2.7 Billion in Advertising Revenue by 2013
NSR, a leading international market research firm, has just released its comprehensive report titled “Global Market for Digital Signage”. This report zeroes in on digital display networks used primarily for third-party advertising, offering an in-depth analysis of key sectors across the globe. The study is based on data from over 200 companies, complemented by Excel models that help operators and advertisers calculate the return on investment (ROI) for digital signage networks.
Digital signage has transformed from a corporate communication tool into a major advertising medium, now catching the eye of top global advertisers due to its effectiveness in reaching consumers who are spending less time with mainstream media and more in transit or shopping environments. As the industry begins to standardize and improve the measurement of audience impact, advertiser confidence is expected to surge, leading to revenue growth rates similar to those seen in online advertising over the past decade.
According to NSR, the digital signage industry, primarily driven by retail, hospitality, healthcare, and transportation sectors, is set to expand from an installed base of about 210,000 sites in 2007 to over 850,000 sites by 2013. While North America and Europe currently lead in deployments, rapid growth is observed in the Asia Pacific region, particularly in China, Australia, and India, which are expected to reach the scale of early adopters within the next five years.
Advertising revenue from digital signage, initially sluggish, has seen a significant uptick as advertisers recognize the medium’s impact, particularly in retail settings like malls and supermarkets. The global industry is projected to grow at an approximate rate of 18% annually, from its current base of nearly $1 billion.
Prashant Butani, an analyst at NSR and author of the report, noted the ubiquity of digital signage in consumer spaces. “We’ve all seen screens outside our homes displaying ads, influencing our purchasing decisions at the point of sale,” he said. Despite initial doubts about ROI, Butani highlights that more advertisers are now reallocating substantial portions of their budgets towards digital signage, recognizing its long-term viability.
Butani further distinguishes this NSR report by its robust forecast model and ROI calculations, honed over nearly a decade of service to the satellite, wireless, and digital media markets. “Our report not only forecasts the future of digital signage but also helps advertisers and network operators understand the potential impact on sales and the timeline for achieving ROI,” he added.
The “Global Market for Digital Signage” report is now available for purchase from NSR, providing detailed forecasts, business model analyses, and ROI spreadsheet models for industry stakeholders. For more details, visit www.nsr.com or contact NSR at 617-576-5771.
NSR is a global leader in satellite and wireless sector market research, providing detailed insights and analysis across various technology and application domains.
