If you aren’t already doing work in the digital signage market, it’s time to consider hopping on the bandwagon.

According to IMS Research, the worldwide digital signage market will grow 40 percent through 2013 to $7 billion. Global revenues for digital signage equipment and software were $5 billion in 2010, increasing to $6.5 billion when service and advertising revenue are included, IMS says.

“Investment in digital signage has been generally slow over the last two years, but we are seeing more confidence in the industry as a whole,” says Shane Walker, director of the Consumer Electronics Group at IMS Research. “There is increasing recognition that it is a valuable tool for directly interacting with audiences, and providing a compelling additional dimension to augment overall advertising placements across media.

“While it is still true that the majority of advertising spend is not in outdoor displays, let alone outdoor digital signage, we expect this to change significantly as urbanization continues and as advertisers recognize the need to reach their audience beyond the living room, where usage of digital video recorders is increasing.”

The retail market continues to be the largest digital signage vertical market, accounting for about 25 percent for more than $1 billion. While growth in retail is not forecast as strong as other sectors, IMS forecasts the market to maintain a dominant share, reaching nearly $2 billion in infrastructure sales by the end of 2015.

“The tools are available today to create a consistent campaign that can reach an audience multiple times while in transit through billboards, street furniture, metro displays, video walls and in-store kiosks, all the while becoming more targeted through mobile device interaction,” Walker says. “This experience will culminate in the customer reaching a touch-enabled screen at the point-of-sale where inventory can be checked and an order placed.”

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Steve Crowe - Web Editor,

Steve is an editor for commercialintegrator.com. He graduated from Emerson College with a B.A. in Journalism. He joined EH Publishing in 2008. Steve is also a freelance sports writer for The Boston Globe and other various publications.

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