News

PRI's Digital Signage Index shows modest growth for Q4 2010

January 13, 2011

The Platt Retail Institute announced recently that its North American Digital Signage Index for Q4 2010 projects modest growth for the digital-signage industry.

Platt Retail Institute began compiling the North American Digital Signage Index (NADSI) in the fourth quarter of 2009 in conjunction with its affiliate, the Chicago School of Professional Psychology.

According to PRI's website, 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 various areas, including the current level of business activity and the view for the industry's prospects, providing an indication of market performance and serving as a guide for vendors and end users in their internal planning processes. The index also compares the industry with other economic activity measures such as GDP, retail sales, ad spending, etc.

Some key findings from the latest index include the following:

The Current DS Index increased from 122.87 in the second quarter of 2010 to 125.85 in the third quarter of 2010, a 2.43 percent increase. This is up from the 1.86 percent increase in the Current DS Index last quarter.

The Near-Term DS Index was 138.02, a 9.67 percent increase in sentiment. This is up from the 6.70 percent increase in the Near-Term DS Index last quarter.

The Current DS Index in the third quarter of 2010 closely tracked the U.S. economy (+2.43 percent versus +2.50 percent GDP). The Near-Term DS Index, an indicator of future business/industry activity, increased versus last quarter (9.67 percent versus 6.70 percent the prior quarter). During the third quarter, advertising spending on DOOH networks rose a robust 21.8 percent, reversing the prior quarter's 14.90 percent drop.

"While these are positive indicators, the slowdown in capital expenditures (-12.98 percent) and hiring (-2.24 percent) during the third quarter indicates that firms are being more cautious, taking a wait-and-see approach," PRI director and research fellow Steven Keith Platt said in the announcement. "The general slowing in the rate of growth in the Near-Term DS Index would buttress this generally cautious but optimistic business attitude."