Trends Shaping the Digital Signage Industry
The fast-growing prevalence of dynamic, digital media in society has required many businesses to embrace digital signage as a prominent way to display messaging. Digital signage is any sort of electronic display technology that can be used to transmit videos, images, webpages, and other content. In the past decade, digital signage has sprung to the forefront of the advertising industry for its ability to dynamize content creation and exhibition, improve customer experience, and boost sales and retention with customers. A recent study cited that 60% of enterprises that do not currently possess digital signage plan to implement the technology within the next two years, and another study expects global digital signage industry revenue to reach $45.33 billion by 2030 (7.7% CAGR).
Amid this growth, there are numerous underlying trends and applications of digital signage that will continue to define the sector as it rapidly develops. The initial trend is the constant endeavor for businesses to connect better with their customers. With retailers aiming to improve the in-store experience for consumers relative to competitors, many have taken to digital signage as a medium to make orders or purchases, interact with and learn about products, and drive traffic toward specific items in stores. According to recent research, 76% of consumers say they have made a purchase based on information they saw on digital signage, further proving the efficacy of digital signage in a retail context.
Another similar trend driving businesses toward digital signage is the fight for customers’ attention and memory. In a world filled with a plethora of brands and sources of media, and where the average consumer is exposed to thousands of messages each day, the importance of choosing efficient and effective advertising channels is greater than ever. Digital out-of-home advertising provides brands the ability to target customers with pertinent messaging that can be deployed programmatically. According to a study, unaided recall rates in digital out-of-home ads are 7 to 25% higher than other forms of media such as TV and social media, further demonstrating the power of digital signage to generate fruitful, lasting messages.
Additionally, developments in technology more broadly have further highlighted the capabilities that digital signage will hold in society for years to come. Advances such as artificial intelligence and machine learning, application programming interfaces (APIs), or even the revival of QR codes have melded harmoniously with the advancement of digital signage and helped make it more insightful, interactive, and useful for both media owners and consumers.
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