Digital Signage Expo’s latest business barometer reports positive outlook
The world's largest digital signage international tradeshow and conference finds sales and advertising increase at end of 2009 in DooH industry
Digital Signage Expo (DSE) has announced the results of its Quarterly Business Barometer Survey for the fourth quarter of last year (Q4 2009).
The overwhelming majority (97%) of all survey participants in North America remain positive about the future of the digital out-of-home (DooH) industry, which also showed no overall change from Q3 2009.
As in past quarters, those most positive about the DooH industry varied across each of the three main groups of respondents, which included technology/content providers (of whom 55% were "very positive"), advertising/marketing professionals (69% "very positive") and end users/OOH network operators (65% "very positive").
DOOH business continues to increase
In Q4, 5% more end user/network operators than in Q3 reported that their actual DOOH advertising revenues were higher than in the previous quarter and 7% more projected that their advertising revenues in Q1 2010 would be higher than the percentage who forecast an increase for Q4 2009.
Technology/content provider respondents predicted that the hottest growth categories for DOOH in the next 12 months would include retail (43%), healthcare (42%), restaurant and transportation (33% each), education (31%), and arts/entertainment/recreation (27%).
End-user dollars committed to DooH
The commitment to install for the first time, add to, replace or upgrade current DS systems during the next 12 months was down compared to last year's Q3 report. But the report said this percentage still represented a "healthy" 73% of end-user respondents. The average number of screens coming on-line per installation was up 5% from the previous quarter, according to the sampling of end-users and network operators planning deployments.
More than one third (37%) of survey participants said their Q4 2009 ad spend was "higher" than in Q3, 13% more than reported in the previous quarter, with another 33% reporting that their ad spend remained "about the same". In addition, 67% forecast "higher" ad spend for Q1 2010. The top categories targeted for that investment were: retail, arts/entertainment/recreation, public spaces, banks/brokerage firms, restaurants, transportation, stadium/arena, bar/nightclub, and hospitality (including hotels).
Future looks bright for digital signage
"There was an obvious dip in industry sentiment between our Q1 and Q2 report, but that turned positive as the year progressed and the worst of the recession seemed behind us," said Richard Lebovitz, editorial director for digitalsignageexpo.net.
"Though many in the industry remain cautious in their outlook for the economy during the next six months, the outlook for the digital signage and digital out-of-home industry as a whole appears to be as bright as ever."
