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PRI releases first North American Digital Signage Index

The Platt Retail Institute (PRI) released its first North American digital signage Index (NASDI) today, which was created in conjunction with the Chicago School of Professional Psychology. The Index tracks the current level of business and industry activity and provides an industry outlook to the future.   According to the report, the change in the current digital signage Index for the third quarter is 10.83 percent above the second quarter 2009. This level of industry activity, in the midst of a major economic downturn, illustrates the underlying demand for the industry’s products and services.

Of the nine components measured in the index, sales revenue and business activity registered the largest increases, while the capital expenditures and hiring components declined the most.

The change in the Near-Term digital signage Index for the third quarter is 15.12 percent and, according to PRI, reflects an optimistic outlook for the industry over the next three to six months. Of nine index components, the sharpest rebounds are planned-for capital expenditures and hiring, demonstrating that firms are ready to invest heavily in anticipation of future growth.
Estimated increases in selling prices (which outpace the rate of inflation) and the level of new and expanding networks increased the least but still showed positive gains.   The NADSI also drills down and tracks performance in seven key industry subsegments: software firms, hardware firms, DOOH networks, professional service firms, captive networks, content firms and agencies/brands. Some significant results include:
• Subsegment current DS index:  DOOH Networks (+18.25 percent) and software firms (+17.29 percent) recorded the highest change in the reported level of business/industry activity during the third quarter 2009 versus the second quarter 2009. 
• Subsegment near-term DS index: DOOH Networks (+37.69 percent) and software firms (+34.10 percent) recorded the highest change in the estimated level of business/industry activity over the next three-to-six months. 
Responses to the subjective questions posed to participants found that financial concerns, proof of effectiveness, market share and staying current on emerging trends and business practices are major concerns for business managers. For the industry as a whole, issues surrounding acceptance of the medium, standardization and overexposure must be confronted. Similarly, measurement, network reach and cross-network standardization are important challenges facing ad-supported DOOH networks.

The Current DS Index substantially outperformed five major benchmarks. These include U.S. Gross Domestic Product, Retail Sales, Total Advertising Revenue, Internet Ad Spending and Out-of-Home Revenue.

digital signage Index