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Platt's Digital Signage Index shows moderate growth for Q3 2010

November 2, 2010

The Platt Retail Institute projects moderate growth for the digital signage industry in its newly-released North American Digital Signage Index for Q3 2010.

The current DS index increased from 120.63 in the first quarter of 2010 to 122.87 in the second quarter of 2010, a 1.86 percent increase. This is down from the 4.41 percent increase in the current DS index the previous quarter.

The near-term DS index was 131.11, a 6.70 percent increase in sentiment versus the current DS second quarter 2010 index. This is down from the 11.80 percent increase in sentiment in the near-term DS index last quarter.

The current DS index's rate of growth is decelerating, closely tracking GDP and retail sales in the quarter. A key component of the near-term DS index, the overall level of anticipated business activity, is sharply lower.

"We anticipate that the balance of the year will be generally weak, with some moderate improvement later in the year (sans retail, which will be in full holiday season mode). An improving economy and recovering advertising spending should bode well for an improving 2011," PRI director and research fellow Steven Keith Platt said.

According to PRI, the North American Digital Signage Index (NADSI) addresses the need to measure activity from period to period. PRI began compiling the NADSI in the fourth quarter of 2009 in conjunction with its affiliate, the Chicago School of Professional Psychology.

The Index is published quarterly and presents a single industry composite measure. In addition, activity in major industry sub-segments, such as software, digital out-of-home networks, and ad agency/brand adoption rates is presented. The Index focuses on several areas including the current level of business activity and the view for the industry's prospects.