Another report paints a rosy picture for industry

November 3, 2008 by Dave Haynes

Here’s another rosy outlook for the industry to throw in your presentation desks, particularly those people raising money or doing what they can to stay afloat.

Market research firm ABI Research says the digital signage market will more than double in size over the next few years, suggesting the overall market for all the software, hardware, install and management services was $641 million this year and will be something like $1.4 billion five years from now.

“We certainly expect the economic slowdown in the United States and other markets to impact retailer and advertising spending on new initiatives over the next 12-24 months,” says research director Michael Wolf. “However, we believe that there will be continued spending in emerging areas where cost of entry is not prohibitive. That gives retailers and advertisers a differentiated approach to reaching the consumer, particularly one that gives them an interactive component and more robust targeting.”

While most large retailers have at least evaluated digital signage, the largest nationwide chains such as Walmart and Costco have made significant investments in the technology. Digital signage implementations can range from a single screen attached to a basic PC with player software to large thousand-screen networks with nationwide distribution over IP networks. ABI Research expects demographic targeting using cameras, and the integration of RFID sensor networks with signage, to add significant interactivity capabilities in coming years that will also help drive the overall market.

“Retailer rollouts of digital signage tend to go in waves, often targeting highest traffic storefronts first,” Wolf notes. “Over time, we expect that lower implementation costs, together with the continued drop in screen prices and better measurement of signage impact will eventually induce those large retailers who have only dipped a toe in the water to dive right into the pool.” 

Those three highlighted paragraphs from the press release don’t exactly whip me into a frenzy, as they are awfully general — the soret of thing the author could pick up by reading a blog or two. The report has a detailed breakdown on what it looks at and includes a list of 16 named companies for the competitive landscape. All 16 are the sort who would have the budget and prediliction to pay for their spot, so I am not sure how real this report is (given there are scores more software players out there).

The research has a full report attached that they would dearly love you to buy. You have to login to the ABI site to get the price, but assume this is more than a couple bucks. Here’s ABI’s pitch …

What Does This Report Answer? 

If ABI wants to email me the full report (hint hint) I can look a little more deeply.


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