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Prospects for Digital Signage Stay Positive

Digital Signage Expo (DSE) this week announced the results of its Quarterly Business Barometer Survey for Q2 2010.

Digital Signage Expo (DSE) this week announced the results of its Quarterly Business Barometer Survey for Q2 2010. Officials said that after a difficult second quarter, during which the economic recovery slowed in the United States and other countries, 97 percent of all survey participants in North America still remained positive about the future of the digital out-of-home (DOOH) industry.

<span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-fareast-font-family: Batang; mso-ansi-language: EN-US; mso-fareast-language: KO; mso-bidi-language: AR-SA" xmlns="http://www.w3.org/1999/xhtml">Digital Signage Expo</span>

Digital Signage Expo

For the second quarter, 59 percent of respondents indicated they felt "very positive" and 38 percent "somewhat positive" about the industry's future. 

"Despite a difficult second quarter, respondents to the DSE Q2 2010 Business Barometer remained upbeat about the future of the industry," said Richard Lebovitz, editorial director for digitalsignageexpo.net, in a statement. "The general outlook for the economy took a dive, but not the prospects for the industry, as the positive forecasts from each stakeholder group — end users/network operators, ad agencies/brand marketers and technology/content providers — represented in the survey indicate."

According to DSE, 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 (53 percent very positive), advertising/marketing professionals (65 percent very positive), and end users/network operators (70 percent very positive).

In Q2 2010, 51 percent of end-user/network operators reported that their actual DOOH advertising revenues were higher than in Q1—up 6 percent. And DSE said the trend line remains positive, as 2 percent more projected their advertising revenues in Q3 2010 will be higher or about the same than the percentage who forecast an increase for Q2 2010.

Technology/content provider respondents predicted that the hottest growth categories for DOOH in the next 12 months would include retail (54 percent), restaurant (38 percent), education (35 percent), transportation (31 percent) and health care (30 percent). In addition, the number of new installations reported during the first two quarters of 2010 remained nearly the same, with 45 percent of respondents indicating their installs were higher in Q1 and 46 percent in Q2.

According to DSE, the commitment to install for the first time, add to, replace, or upgrade current digital signage systems during the next 12 months is relatively unchanged from the previous quarter's report, with 13 percent of end-user respondents indicating they're installing DS for the first time and 68 percent adding to or replacing and upgrading their current systems. The average planned installation size reported in Q2 was slightly greater than in Q1, with 45 percent planning to install more than 100 screens versus 42 percent in Q1. According to the sampling of end-users and network operators planning deployments, their projected investments during the next 12 months remained about the same as last quarter.

Slightly more than one-third (35 percent) of survey participants said their Q2 2010 ad spend was higher than in Q1 2010. Another 57 percent reported that their ad spend remained about the same.

 


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