Commercial Integrator + Security Sales Nov/Dec 2023 - 18

CI
EXPLORING DIGITAL SIGNAGE
like tight budgets and lead times are
manageable and less impactful. " Looking
from an industrywide perspective, Wargo
agrees, saying, " While supply is likely to
continue improving, hiring is likely to
remain a long-term issue. "
General economic uncertainty also
weighs on the digital-signage market;
indeed, forecasters have been evaluating
recession risks for months, vacillating
between optimism and pessimism. What
I might call " CNBC anxiety " naturally
plays a part in decision-makers' thinking
as regards purchasing and installing AV
systems. According to Bidwell, " In recent
months, I have seen some hesitation to
purchase large-ticket items in fear of a
recession and due to stock prices dropping. "
Mendonca emphasizes that point,
saying, these days, " ...every dollar gets
scrutinized by the business to ensure
that the investment makes business
sense and will return the highest business
value. " Given economic worries,
he says, it's more important than ever
for digital-signage providers to play an
active role as educators and advisors.
According to Mendonca, it comes down
to " ...helping customers develop the right
business cases that justify the business
value for deploying digital signage to
their organization. "
Digital Signage:
The Next 12 Months
Although Wargo was a voice of caution
earlier as regards signage revenues this
year, he states that AVIXA's IOTA report
paints a rosier picture as we look at the
next 12 months and beyond. The report
" ...shows better growth for signage over
the next couple of years, as recession
risks abate and core markets continue to
grow, " Wargo explains. " [IOTA] shows 7.1%
growth in signage revenue in 2024, followed
by 7.4% in 2025. " Bidwell's independent
study of market reports also aligns
with AVIXA's conclusions. " I expect to
see a 6% to 8% growth rate in digital-signage-centered
revenue over the next 12
months, " she says. " I am optimistic [about]
digital signage being a larger piece of most
commercial integrators' pie in 2024. "
If you ask Meszaros, there is good
reason for optimism about 2024. Harking
back to his comments about 2023 being
somewhat flat, he says, " Most of the
new opportunities we saw eventually
reallocated to 2024. From the activity
in Q4, we see digital signage returning
to a prominent role next year. " Other
companies such as Coffman Media - the
integrator that is exclusively focused on
digital signage - are looking at numbers
many integrators have not yet attained.
According to Ault, " We are forecasting
revenues to be 35% to 38% over 2023
based on our current trend YTD in 2023
sitting at 32% from 2022. " He underscores
that digital signage is not only a
fast-growth category but also a category
that's broadly compelling across markets.
" All verticals need to have a platform for
communication to reach their intended
audience, " he declares.
And that last point is exactly why two
of our industry's leading integrators -
AVI-SPL and Diversified - are so bullish
about digital signage in 2024. Mendonca
describes " a complete paradigm shift "
from the old days of implementing
digital-signage solutions as standalone
projects. " Now, [it's] an integral part of a
company's DNA for how it communicates,
collaborates, connects, engages, educates,
promotes and entertains their target
audiences across the entire organization, "
he says. Mahurin says that Diversified has
developed a strategy to grow digital signage
and digital experiences for that very
reason. " The need to distribute content
or digital messaging will continue to be
a critical part of any company's communication
strategy, " he opines, " along with
utilizing that data to drive better decisionmaking. "
Unsurprisingly, then, both firms
expect to realize significant digital-signage
growth over the next 12 months.
High-Growth Vertical
Markets for Digital Signage
It's true that digital signage is a compelling
opportunity across verticals, but not
all markets are equally ripe. All of our experts
agree that retail has been a growth
area, and the opportunity remains
robust. " This year, " Meszaros reports,
" we have seen an upward trend in retail
programs, mainly driven by CPGs exploring
innovative ways to increase engagement
at the shelf. " Bidwell agrees with
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18 Commercial Integrator+Security Sales & Integration | Nov/Dec 2023

Commercial Integrator + Security Sales Nov/Dec 2023

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Commercial Integrator + Security Sales Nov/Dec 2023 - Bellyband1
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