The Booming Digital Signage Industry

In Technology by Daniel Newman1 Comment

This post is sponsored by Samsung Business. All thoughts and opinions are my own.

In this fast-paced tech world, there are so many different images competing for customer’s attention that it’s often hard to know what might work best for you and your business. One thing to put at the top of your list, however, is digital signage, which is rapidly gaining in popularity. The ability to display relevant content in high-definition video is a very effective way to keep customers engaged and to make your customer interactions more of an experience than simply a transaction. Let’s explore digital signage a bit more fully and take a look at why the industry is growing so quickly, as well as how digital signage affects the contemporary consumer consciousness.

Digital Signage – Predictions for Growth

A recent MarketsandMarkets survey predicts a $23.76 billion growth spurt for the digital signage industry by 2020. A similar finding is reflected in an IDC report, which expects the industry to reach the $98.8 billion mark by 2018. In addition, the report finds digital signage is the primary motivator driving the Internet of Things market. With the technology and innovation markets expanding at what seems like the speed of light, and with the feedback we’re seeing from consumers, it’s evident digital signage strategies are delivering results.

Identifying Factors for Growth

Digital signage has evolved as a refreshing alternative to the traditional print advertising medium. At its core, digital signage can help brands large and small provide relevant and updated content to keep audiences engaged, a crucial factor where print media falls short. The bright LCD panels displaying dynamic content for all types of businesses have made it a versatile choice for many companies. The signage industry has continued to evolve in technological sophistication over the years, keeping up with other innovations, including 4K, which is also known as ultra-high definition. With so many choices available, it’s obvious why digital signage has become a sound investment for many businesses. Here are some of the key factors that have led to a surge in digital signage adoption in various industries.

The Desire to Provide an Amazing Customer Experience

As perspectives evolve, the customer has become the most important influencing factor in defining advertising content. Isn’t that as it should be? Competing with smartphones for consumer attention, the digital signage market stepped up its game to deliver an engaging experience. We can see this in restaurants with menu boards, in retail stores using virtual dressing rooms, and in airport, hotel, and train station or subway areas, just to name a few. The more business of all sizes can focus on delivering better customer experiences, the more of a win-win it is for everyone. Customers can more easily make connections with a brand or a business and find and get what they want when they want it, and businesses can be more effective at not only reaching their target audience, but by delighting them with whatever product or service they provide. There are so many options today when it comes to buying anything we want to buy. The brands who win are the brands who are the most successful at creating relationships and meaningful experiences with their customers.

Spend Less, Get More

While it’s great to create great experiences, when you can do it in a way that impacts a customer’s button line, it’s even better! That’s where digital signage comes in. Digital signage is contributing to a significantly reduced cost of operations, and helping organizations like schools, government agencies, and public safety offices make the public’s experience while in their facilities a more enjoyable one. Since there are so many options available with constant upgrades in media players, organizations are finding the initial costs of installation is not cost prohibitive and the return on investment is greater, and more rapid, than expected. As mentioned above, creating a better customer experience, through digital signage and other technology, is rapidly becoming the cost of doing business in this high-tech society. This is where system integrators can deliver real value, by helping their customers make the right technology purchase decisions and help their customers spend less, get more, and deliver even better experiences for their customers.

Creating an Enhanced Viewing Experience

As digital signage technology becomes more sophisticated, viewing content becomes more engaging than ever. As a highly visual society, this most definitely has an impact on the bottom line for businesses smart enough to include digital signage into their advertising arsenal. The digital products industry is always evolving, and offering things like larger panels and ultra -narrow bezel video wall displays, higher resolution and all with lower energy use. High-definition and now 4K digital signage are capturing consumers’ attention as they wait on line or enter a store or invite you to be interactive to ordering off a menu. These are just some of the ways in the technology is spreading its ubiquitous presence in every industry.

Emergence of HTML5

One of the most exciting factors propelling the popularity of digital signage is the advent of HTML5 in the designer’s technology repertoire. Content that was previously confined within the narrow boundaries of devices that only supported Flash has now been now set free. HTML5 is adaptive and flexible, and lays the foundation for innovating in interactivity through touch and proximity-based solutions.

Interactivity – The Holy Grail

Today’s consumers are more tech savvy than ever before. Far from being passive observers, people are active participants as images vie for their attention 24/7 on TVs, tablets, and smartphones. Today’s consumers want to play an active role in their purchasing experience and/or in their interaction with a business or a brand. They want to be involved, engaged, entertained–and when it comes to multimedia, the bar is high. When you’re constantly bombarded with all kinds of noise, online and off, it’s unique and engaging rich media and campaigns that will ultimately win the battle for customer engagement. Digital signage, and providing opportunities for interactivity with customers, is how you can make that happen.

Where are you and your business when it comes to digital signage? Are you experimenting yet? If so, we’d love to hear what’s working for you, what challenges you’ve faced, and how you’ve dealt with them. If you’ve not yet integrated digital signage into your marketing and advertising strategies, what’s holding you back? We’d love to hear your thoughts on this.

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Photo Credit: designworkplan via Compfight cc

Daniel Newman is the Principal Analyst of Futurum Research and the CEO of Broadsuite Media Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise. From Big Data to IoT to Cloud Computing, Newman makes the connections between business, people and tech that are required for companies to benefit most from their technology projects, which leads to his ideas regularly being cited in CIO.Com, CIO Review and hundreds of other sites across the world. A 5x Best Selling Author including his most recent “Building Dragons: Digital Transformation in the Experience Economy,” Daniel is also a Forbes, Entrepreneur and Huffington Post Contributor. MBA and Graduate Adjunct Professor, Daniel Newman is a Chicago Native and his speaking takes him around the world each year as he shares his vision of the role technology will play in our future.