Overview:
The report 'Digital Signage in Europe: opportunities for digital out-of-home advertising', produced in partnership with German research company Goldmedia, examines the fast-growing market for digital out-of-home media in Western Europe.
'Digital signage' networks of connected digital screens in public spaces (airports, stations, trains, supermarkets, hotels, surgeries, etc) are generating opportunities for traditional out-of-home contractors, digital specialists, technical enablers and system integrators, display manufacturers, venue owners and advertisers.
Key findings:
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Digital out-of-home (DOOH) advertising revenues in Western Europe will quadruple over the next five years from Euro160m in 2007 to Euro626m by 2012. By 2012 DOOH share is expected to grow to approximately 10 per cent of total OOH ad revenues.
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Driven by the migration to digital and the incremental revenues generated from digital sites, the out-of-home sector will be the only traditional advertising media to post real revenue growth in the next five year.
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Thanks to the increasing affordability of digital displays, digital signage networks not only conquer brand new spaces for advertising (e.g. in-store point-of-sale advertising) but also upgrade static poster format sites in a growing number of locations (airports, stations, roadsides, etc.).
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Sales of displays and other hardware for digital signage generated revenues in the amount of approximately Euro4m in Western Europe in 2007.
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Lower maintenance costs and higher revenues, combined with reduced hardware costs are making a profitable business case out of upgrading many existing to digital, as well as creating new sites intended to reach audiences on the move.
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The added value of digital OOH formats over traditional OOH formats (superior impact of moving image, creative and dynamic copy, booking flexibility and scalability, etc) allows contractor to sell inventory at premium rates.
In this report:
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Comprehensive overview of European digital signage networks (112 companies analysed individually)
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Description of value chain and business models
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Forecast of total market growth to 2012: total revenues, OOH and digital signage revenues
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