The digital signage market is very fragmented, but very promising, too. There are more than 2,000 companies in Germany, Austria and Switzerland, including manufacturers and distributors of hardware and software, technical and creative service providers, distributors, agencies and marketers. Digital signage creates complex technological and creative challenges, and designs, development and distribution of digital signage solutions differ widely. Today it is increasingly being used as driver behind marketing projects. In the future digital signage or „digital signposting“ focuses on the use of digital media content for advertising and mounting information systems in shops, banks, hotels, hospitals or public spaces. Generally speaking, digital signage encompasses the digital and interactive communication using modern output devices that combine sensing, multimedia, content management and data centre target groups.
Market and competition
The variety of digital signage is also reflected in the company profiles of its providers. Various types of digital signage companies emerge in the DACH market: firstly those that are specialized in digital signage as full service providers, secondly industry specialists in the vertical markets that offer existing and new digital signage solutions. The third group is large, it is established in the ICT solutions and services that are increasingly engaged in growing market. This constellation results in continuous market adjustments; there are continuous consolidation processes - acquisitions, mergers, liquidations. Unlike the predominantly small software companies and integrators specializing in specific sectors, the display vendors have great significance and influence, and they are in contact with all the major companies. Thus the entryway to digital signage may lie behind the normal office monitor-project door. The help of digital signage specialists is still required to drive the project with the necessary concepts. The chart above shows the changes of the overall market from 2009 to 2010, and it demonstrates the market fragmentation, including different types of market participants in this industry, as well as the different practical approaches being pursued. It has become imperative to develop innovative approaches that combine the necessary skills in order to offer a holistic customer service. The variety of the systems providers continuesin their customers and markets. In Germany, the areas of corporate communications, shopping malls and transportation have proven to be extremely dynamic. The grocery retailer, once the hope of its branch, is growing very slowly. Other major projects are currently being implemented in banks, the automotive and the non-food trade. Overall, digital signage has become an integral part of the communication in POSor POI applications (point of sales/information).
Opportunities
Deutsche Telekom´s subsidiary Out-of-Home Media has finished installation of “NetContact“, the largest network of nearly 1,000 digital screens at German airports end of March 2012. In early December 2011, the first digital 70-inch AirPort network was launched at Frankfurt Airport. Until the end of 2011, the Out-of-home-Channel has also included 1100 screens in 200 frequented German train stations. Already in December 2010, Ströer Out-of-Home Media went into the first stage of operation with 200 of high-resolution displays. And „TV Wartezimmer“ announced the installation of more than 6,000 information systems in clinics. These examples picked at random illustrate the whole spectrum of the current hype about outdoor advertising: digital signage has been long been almost omnipresent. In train and subway stations, airports, shopping centres, retail stores, post offices, pharmacies and fast food restaurants emerged a new type of media: digital Out-of-Home (OoH), the TV symbiosis, as well as online and outdoor advertising in public spaces. As compared to the global competition.Germany has much to catch up. The Agency PQ Media forecasts a confirmation of the significant positive trend of digital signage until 2014. A study of the consulting company Goldmedia and Screen Digest prognoses that by 2020, the digital OoH media will be valued at 6.5 billion Euros. The German-language digital signage market has experienced a significant upswing with an overall growth of 21 percent in 2010. According to estimations by „invidis consulting“ the present market size is estimated at only about 330 million Euros. The results of the global competitionindicate the huge potential for Germany to exploit the market.
Perspectives
Currently the industry is more focused on solutions for POS, advertising and sales promotion; new and innovative applications for digital signage outside these solutions are underrepresented. The demand for digital and interactive communication media is immense, though, especially in public places such as government agencies, in communities, hospitals and clinics. The potential of digital signage surpasses its previous limitations of being just an advertising medium. Ideas for interesting projects can e.g. be found in the manufactory (operations scheduling, production communication, production and process control to increase effectiveness, quality management); communication with employees, traffic and transportation, healthcare, schools/training and education. The requirements necessary for the successful transfer into new application areas are very complex. Their developments present new challenges. The following areas of high potential leave plenty of room for marketing and technological innovations:
Infrastructures such as wireless connectivity, connected devices, cellular connectivity, embedded wireless solutions, integration of data and voice networks Evaluation and effectiveness measures such as RFID, data feedback and evaluation, individualized sensor and feedback systems Service & support such as remote content management, monitoring software Hardware such as projections/3D-displays/cholestic displays /EMV-compatible displays, multi-touch systems, antimicrobial slides, new technologies featuring augmented reality, 3D or holograms, media storage solutions Interactivity/command and control such as extension of interaction possibilities: content individualization, increasing the interaction, UMS (Unified Messaging Systems), GPS solutions, hearing aids, voice processing systems, voice control, table-top/WLAN-based touch panel control systems, integrated control systems, control systems software architecture, circuit board control systems Access control systems such as biometric systems, smart-card systems, RFID Content distribution such as media server, CATV/MATV/DSS/IPTVsystems, multi-channel distribution Content management and creation/customization such as systems integration of CRM systems, automation server, ENGsolutions (Electronic News Gathering), media content management systems und media management solutionsConclusion
Although currently not yet recognized by the industry, the possible applications and functions available in digital signage are numerous and complex. The transfer and adaptation of these applications to new areas of use enable innovative business models and markets to gain a significant advantage over global competition.
