Digital signage will be the driving factor of revenue growth for companies as they use it as their branding component, and they need to focus on the content display.
Fremont, CA: Gone are the days when people used to believe in the word of mouth when it comes to the changes around us. People can now witness the changes that are taking place in the ecosystem, which appears to be the same with digital signage, the quality of video displays, and their content. The rise in the demand for digital signage is evident from the rapid revolution and price compression in the display sector. Displays became thinner, wider, brighter with higher resolutions. People have witnessed forays into 3D and curved surfaces and are now seeing flexible, transparent, and modular technologies.
Meanwhile, video content has also flourished. Content creation facilitated by HD and ultra-high definition capture technology in the form of hand-held camcorders. It is then embedded in wireless handsets that gain inclination among the consumers. Additionally, the consumers have become engrossed with Youtube videos and the available amateur and prosumer videos online. All of the above have paved the way for today’s digital signage and the near-ubiquity of existing displays. Ultimately, digital signage represents the proliferation of displays in public places and is not limited to the private or confined viewing of a TV or portable device. It is extended over the limited engagement of theater or a paid venue as well.
According to reports from AVIXA’s Industry Outlook and Trends Analysis (IOTA), digital signage is the second-largest solution area within the pro-AV industry, for now. The current estimation is about $34.1 billion in product and service revenues. It is expected to grow at an average rate of 5.8 percent each year for the next five years, making it the largest solution area by 2024.
The opportunities provided by digital signage will go far beyond the expectations soon. Thus, displays are a large chunk of the revenue, nearly 35 percent, that is captured by AV providers. Improvements in displays, cost reduction, and greater flexibility in configuration through newer direct-view LED can help to drive the overall growth of the category. Furthermore, the back-end systems supporting the displays in the form of specialized or generic AV/media servers, storage and network technology represent 37 percent. Another crucial component that can be considered is the services delivered by the providers to design and install the signage for a client captures 21 percent.
With digital signage being the companies’ branding component, a single looping video played for weeks can no longer serve the purpose alone. Therefore, digital signage content must capitalize on the broad, high-resolution capabilities of the display and offer something new on a more regular rotation. In a nutshell, it needs to provide a content-as-a-service within a more extensive managed service offering.
See also: Top Digital Signage Tech Companies