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STRATEGY INSTITUTE: 2009 to present challenges, digital signage execs still positive

November 23, 2008

CHICAGO — The majority of industry leaders and luminaries attending the Fourth Annual "Building Your Digital Signage Business" Summit, hosted by the Strategy Institute this week, agree that the industry will sustain strong growth in 2009 and 2010 despite the economic slowdown. 

More than 80 percent of speakers and panelists participating at the summit indicated that as vendors, agencies, integrators, service providers or network operators, they continue to see strong growth and demand for their digital signage products and services, and expressed a positive outlook on forecasts and pipelines relative to market conditions.  

Richard Fisher of PRN gives the opening address.

The Summit, chaired by Keith Kelsen, executive chairman of The MediaTile Company, was held over two days in Chicago. 

"Although aggregate brand spending may shrink in 2009, the digital signage industry is beginning to see a reallocation of that spend to this new medium," Kelsen said.

The opening address was given by Richard Fisher, president of PRN, who offered insight into Wal-Mart's new Smart Network. PRN will serve as the network operator for Wal-Mart's second-generation digital merchandising network.

"I believe retail media is the next great form of mass media, but we are not going to get there by approaching this business as a land grab for real estate," said Richard Fisher, president, PRN. "Especially in today's economic climate, retailers are looking at retail media as a strategic tool to better serve their shoppers. If we can strike the right balance between serving versus selling, we will win on all fronts because customers who have satisfying shopping experiences engaging with retail media will become a magnet for advertisers."

Keith Kelsen, left, speaks with Rob Wolf, middle, and Robert Brazell in the keynote panel.

"In the beginning of 2009, overall advertising spending will be down, but as digital out of home network metrics become better understood, we believe brands will continue shifting dollars to this medium," said Patrick McSteen, associate media director, Zenith Advertising.

These comments were also echoed by ABI Research, according to a recent press release: "The digital signage market will more than double in size over the next few years, according to a new report from ABI Research. Driven by a desire by retailers and advertisers to better target consumers in the out-of-home media market, the overall market for digital signage software, hardware, installation and management services in the United States will grow from a $641 million market in 2008 to nearly $1.4 billion by 2013."

The keynote address was given in the form of a panel where Kelsen interviewed Robert Brazell and Rob Wolf of Instore Broadcasting Network, who were positive about the potential of digital out-of-home media, but realistic about the impact of the economy on the industry.

"Performance-based marketing like digital out-of-home will dominate the future," Brazell said. "Metrics like the ones OVAB are working to produce will help, but they're very broad. A grocery store shelf-level screen deserves a different kind of measurement than a subway billboard."

As for advice on the economy, Brazell says companies just need to stay in business in 2009.

"Get creative and just find a way to get creative and stay alive," he said. "It's not a good time for expansion."