Structural Analysis and Competence Dynamics of Digital Signage Industry
Date Issued
2005
Date
2005
Author(s)
Chang, Fen-Yu
DOI
zh-TW
Abstract
There are no identical definition and consistent translation for “Digital Signage” system in Taiwan, but in my research it is still translated into the Chinese language in terms of its generally-called title and functions. Actually, the digital signage market is gaining more credibility and visibility as an increasing number of commercial establishments are implementing digital signage for information, advertisements and entertainment with large flat displays. What is more, keeping abreast of the mess media, it is viewed as the fifth media channel. In other words, digital signage systems, not the technical breakthrough but the innovative media distribution with several technologies integrated effectively, are accounting progressively for the majority of the out of home media market in order to respond well to the challenging shifts in delivery and reception of messages. Therefore, they appear to the dynamic media solution to advertisers’ need to target the right message to a specific audience, who get fed up with jammed ads on the popular media.
In 2004, the total value of displays in the worldwide retail signage market amounted to $664 million, iSuppli Corporation estimates. The market will grow to $2.35 billion in 2009, rising at a compound annual growth rate of 20 percent from 2004. Compared to the entire out of home media industry growing at a slower rate of 6 percent in U.S., it obviously shows that the digital signage market will continue to be expending with enormous potentiality. Accordingly, it is expected that the digital signage system is going to remain the most popular sign in out of home advertisement and to grow strongly to maturity during next few years.
For all its benefits, digital signage is not without its disadvantages. Chief among these is cost, in addition to the lack of objective index to measurement and customized business models and so on. At this point, the major factor slowing adoption of digital signage is time-time for relative businesses to validate its use in their own environments. However, large numbers of installations are an issue not of “if” but of “when” by offering total solutions, whether in the world or in Taiwan. To date, high percentage penetrations of key markets continue to identify more concrete business drivers for rapid adoption of digital signage and to cumulate experiences to provide insights for the development of new products and service in this space.
Despite these macro-economic and short-term obstacles, my research consequently paints a compelling picture that the long-term outlook for the digital signage industry is highly positive by means of leveraging relevant strategic theories, industrial news and interviews with senior managers in ADVANTECH. As a result, it is concluded that marketers need to bear in mind six keys to success that are generally simple in concept but often difficult in execution: 1. Repositioning from broadcasting media, turkey solutions must be highly targeted in terms of both commercial and public niches/applications to be the best choice of out of home media. 2. Extending from the traditional concept of the client-server relationship in mess media industry, system integrators and content providers will gain great controls and profits over other players in the value net of digital signage systems. 3. Most approaches will require an effective array of partners and components for success. 4. Critical market segments for digital signage is growing well and swiftly, but the opening window is such a short period that venders need to be fast movers to size the demand for enabling technologies and services. 5. Different segments have different needs to understand advertisers’ and brand managers’ perceptions, expectation, requirement, and plan for their digital signage system. 6. Facing the substitution from thin PC and various multimedia players, digital signage marketers must continue to support and even fund efforts to educate their adopters in order to convince them of having good prospects of gain.
Subjects
數位顯訊器
戶外媒體
家外媒體
分眾傳播
影音多媒體應用
digital signage
dynamic signage
out of home media
narrowcasting
audio and video application
Type
thesis
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