Two-Thirds Of Digital Signage Companies Seeing Double-Digit Growth: Invidis

February 13, 2023 by Dave Haynes

The first numbers are out from the Digital Signage Business Climate Index (DBCI) produced by Sixteen:Nine’s content partners in Germany, the consulting-events-publishing firm invidis, it suggests a lot of companies in the sector are seeing encouraging growth.

65 percent of the companies surveyed by invidis achieved double-digit sales growth in 2022, and the industry generally sees a very positive business development outlook, “albeit with a somewhat subdued outlook for the next six months.”

Between 2009 and 2017, invidis measured the pulse of the digital signage and DooH industry on a quarterly basis (DBCI archive with all results). Although the industry was still in its infancy at the time, the free publication of the quarterly results was always hotly anticipated. Even major market researchers used the data for their models and reports. The firm announced a month ago that it was spinning the DBCI back up.

Similar to the yearbook that invidis produces annually (now with contributions from Sixteen:Nine), invidis says the data provided is regularly used in countless studies, investor memorandums, stock market prospectuses and for competitive intelligence.

From the new results:

The current mood in the industry is very good – this was also reflected in the atmosphere at the ISE. A total of 86 leading digital signage providers from Europe (80%) and North America (20%) took part in the survey in early January 2023. With an index value of 56.5 (scale from -100 to +100), the mood at the beginning of the first quarter is very good. Historically, the industry achieves the highest sales in the last and first quarter of each year.

Current sentiment is best in North America, followed by the UK, Benelux, DACH and Scandinavia. Sentiment in the sector is worse than average, particularly in Italy and on the Iberian Peninsula.

The outlook

The six-month outlook is positive, although expectations are a bit more muted compared to the status quo. The exception is France, where expectations for the coming six months are higher than the current mood. In discussions with invidis, the upcoming 2024 Summer Olympics in Paris were often mentioned as a special boom. Many brands are renovating their flagship stores in Paris for the summer games. The forthcoming quarterly DBCI surveys will show whether the special demand will really materialize. The outlook is most positive in North America.

The analyzes of the individual digital signage business types in the value chain are also interesting. Integrators report the most positive signals – both about the current situation and the outlook. Since integrators usually keep in touch with end customers, the industry can look to the future with equanimity. Exhibitors and trade visitors at the ISE also reported an enormously increased interest from end customers in digital signage solutions. The DooH industry, which is struggling with the current advertising crisis despite an increase in market share, is in a somewhat less positive mood. Software providers rated the current market situation most negatively at the beginning of the year.

Challenges

As part of the DBCI, invidis asked leading representatives of the digital signage industry about the greatest current challenges. Unsurprisingly, with double-digit sales growth, the biggest challenge is adjusting corporate structures to meet rapidly growing demand. In addition to internal structures (including back-to-office vs. home office), it is particularly the search for new employees that is proving to be particularly difficult, not only in the digital signage industry. More than a quarter of all digital signage providers surveyed see rising material costs as one of the biggest challenges, followed by green signage issues.

The results of the index are available as a PDF download. The next DBCI will be collected in early April, with results published later that month.

The quality of the data will only increase if companies respond. This one has the feedback and data from 86 companies, most in Europe. The industry is much, much bigger than that, so you can help by taking a few minutes top contribute.