The Nordic market for Digital Signage within the retail and service sectors is forecast to reach over SEK 2 billion (2 000 MSEK) by 2015. ZetaDisplay has come to this conclusion in connection with a current report from the marketing analysis institute IMS Research, which shows rapid growth of Digital Signage in the world market in the next few years.
“Our calculations show that the Nordic market for Digital Signage within the retail and service sectors could reach in excess of SEK 2 billion by 2015. We are counting on rapid market growth in the near future, as an increasing number of chains invest in this medium. ZetaDisplay’s sales grew, for example by as much as 64% during 2010,” explains ZetaDisplay’s CEO, Leif Liljebrunn.
This high rate of growth was in accordance with the forecast made public by the marketing analysis institute IMS Research earlier in the summer. The Report “The World Market for Digital Signage, 2011 Edition” states that the growth in the global market for Digital Signage will exceed 40% by 2013. It is expected that the world market for hardware and software, excluding service and advertising, will reach USD 7 billion, equivalent to MSEK 45 billion.
ZetaDisplay has based its own calculations on both the size of the retail and service sectors and also the extent of the business deals that ZetaDisplay has concluded so far. The company’s client ICA Kvantum decided to initially invest in Digital Signage to the extent of MSEK 50 for a four-year period. Subsequently this investment expanded by a further MSEK 20 to total MSEK 70. Added to this was the preparation of content for the digital displays, worth about MSEK 20, covering 100 stores.
“This investment level in Digital Signage, which we can see is general across the market among our Nordic clients, is equivalent on an annual basis to continuous costs equivalent to 0.15% of the annual turnover in the branch. When this proportion is applied to the turnover figures for of all the major retail chains, the size in the Swedish market for investment in Digital Signage becomes MSEK 534, and for the rest of the Nordic market MSEK 1 638 annually, or in total over SEK 2 billion.
The retail and service sectors in the Nordic area comprise about 800 major chains, which stand for 70% of the total trade turnover, which amounts to a total of MSEK 1 092 (in 2007) according to calculations based on Exportrådet (the Swedish Trade Council) Market Retailing figures for 2002-2007.
ZetaDisplay can see several factors which drive the increased trade investment in Digital Signage.
“The trade today has gained more knowledge and experience in Digital Signage, which simplifies the decisions to continue investment in it. The massive surge in media also means that one has doubts that the information on TV, radio and direct advertising is actually reaching prospective customers. On the other hand, Digital Signage efficiently presents its messages to customers precisely when they are deciding whether or not to buy, that is to say in the stores themselves. The medium can also reinforce information that the customers have already received via other media. Two-thirds of all purchasing decisions are made as customers tour the stores, where the products are displayed.
We have also found that brand suppliers are prepared to pay for their presentation on the channel, since the purchasing decisions are primarily made while customers are in the store. This means that Digital Signage can to an increasing extent be seen as a new media channel for marketing,” says Leif Liljebrunn.
ZetaDisplay also points out that standardization of hardware contributes to reduced investment costs for Digital Signage. This is a matter for example of a reducing price trend for media players and digital displays, but also an increasing use of smaller digital displays, smart phones and touch screens.
If you have questions, please contact:
ZetaDisplay AB (publ)
CEO Leif Liljebrunn
Telephone: +46 70 845 80 52
E-mail: leif.liljebrunn [at] zetadisplay.com
ZetaDisplay is a leading supplier of Digital Signage to major chains in the retailing and service sectors of the Nordic market. The company has close links with research in this area and had demonstrated markedly increased retail sales with more satisfied customers. The company had a turnover of MSEK 50 in 2010 and is presently in an expansive phase.
ZetaDisplay offers complete media platforms for Digital Signage which include software, services and digital systems. The company’s media platforms enable clients to easily produce offers and ensure that a great deal of communication is presented on the right displays at the right time. Each media platform is operated and monitored centrally by the company. The distribution of media and playlists to the displays in stores and service centres is based on the Internet. Control and supervision of the communication is managed by both the company and its clients by means of a web-based interface that is accessed in the cloud via the Internet. The company undertakes media production and provides template tools which allow clients to create the content themselves. The complete solutions also include analyses, advice and project management, along with handling the installation of digital displays and communication equipment at each client site.
Media platforms supplied by the company are used in several sectors, including construction, electronics, sport, clothing and convenience stores, along with banks, restaurants and other service areas. Examples of clients include ICA, Euromaster, Alko, Volkswagen, Shell, KotiPizza, Carlsberg, Team Sportia, SJ, Panasonic and Bilia.
ZetaDisplay has just under 40 employees. The head office is in Malmö and there are subsidiaries located in Denmark, Norway and Finland. From April 4 2011 onwards the company’s shares will be traded on NASDAQ OMX First North Premier using the shortname ZETA.
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