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Digital signage growth falls short, says NSR

The digital signage industry as a whole continues to grow, albeit at rates much lower than were expected over the past two to three years, according to NSR’s newest market research report, Global Market for digital signage, 2nd Edition.

The industry has been severely impacted by the economic recession; however, deployments continue and advertisers are gradually seeing the value of out-of-home media, according to the report by the international market research and consulting firm specializing in telecommunications technology. NSR expects the 596,000 sites supported by third-party advertising in 2009 to grow to approximately 1.45 million sites by 2019.

Revenues from advertising have been hard to come by in the last two years, but networks supported by marketing budgets have grown steadily with estate owners recognizing the impact of the medium on consumers, especially in retail locations such as malls and supermarkets. Here, once again, the global industry for branded networks is expected to grow at a healthy rate of about 18.4 percent from its current estimated figure of more than 77,000 sites in 2009. Advertising revenues meanwhile, as predicted in the 1st Edition, have risen past the billion dollar mark and are expected to grow from $1.68 billion in 2009 to well over $7 billion by 2019.

“Advertising budgets were slashed across the board in 2008 and early 2009, which has brought down revenue numbers for this market,” said Prashant Butani, senior analyst for NSR and author of the report. “However, for those networks that were able to establish a targeted audience base, and were present in locations of high dwell time, CPM figures have remained stable. Verticals like Healthcare in North America and Transportation in Asia are also still opportunities for steady growth.”

Gradual acceptance of the medium has kept the industry going through tough times, and despite some consolidation and shake-out, major players have emerged stronger after the downturn.

This new NSR report focuses on networks consisting of digital displays used for third party advertising as well as for branded communications and provides a study of 10major verticals served by these networks across five major geographies of the world. Data from more than 250 companies forms the core of the research, and additionally the report provides a comprehensive set of Excel tables and charts that allow readers to quantify every aspect of the market for digital signage networks.

digital signage growth falls short, says NSR