The digital signage market in France

Billboard advertising has gained in impact and has forged its place in the communication strategies of the marketing teams of many companies, who are equipping themselves and using this tool more and more regularly. This communication channel is highly appreciated for the attractiveness of its content (animations, high screen brightness), the responsiveness of content updates and high recall rates. Many companies see its use as a real advantage, and are investing heavily in screen network management systems. Find out the latest statistics on digital signage at the point of sale in terms of market and efficiency.

Generally speaking, companies that invest in customer experience have higher business results and growth than others. A study published by Zendesk and carried out with Enterprise Strategy Group (ESG) in 2020 clearly establishes a link between customer experience maturity and company growth. The most mature companies are called "champions" and have 6 out of 7 criteria on how they use their support teams, new technologies and data to perform better. On average, SMEs and large companies classified as "champions" show an increase in the average customer basket, higher loyalty rates and managers who consider the customer experience to be a business priority.

Billboard market figures

While advertising spending is down for the average media (including the internet), the share of outdoor advertising shows an increase of +2.1% in 2014.

70 million euros in revenues are expected from indoor digital devices installed in France in 2014.

The size of the global digital signage market is estimated at $16.88B in 2015, and should reach $27.34B in 2022, with an average growth rate of 8.18% between 2015 and 2020. The countries with the greatest demand for digital signage are the USA and Canada, while Germany, the UK, Japan and Korea are also experiencing strong growth in this sector.

The size and, above all, the growth of the digital signage market can be explained by a number of factors:

• Growing demand in the public domain and at points of sale (particularly for advertising purposes).
• The fight against paper waste and for energy savings.
• The emergence of new technologies enabling the production of screens with high luminosity (for outdoor use), ultra-thin edges, and high resolutions (4K, 8K...) enabling new uses.
• Changes in production methods leading to a reduction in screen costs (and therefore in the cost of digital signage solutions).

It's important to qualify the figures on market size. Numerous studies exist, and it's hard to agree on an exact figure, or on the list of activities included in the "digital signage" sector. For example, the outdoor advertising market accounts for a significant proportion of the figures announced, but is not always taken into account. What's more, these studies are generally commissioned by companies with close ties to the digital signage sector, who would therefore have no interest in communicating a report indicating a market recession... On the other hand, the multiplication of players, their growth, and the increase in their customer base attest to the market's good health.

Digital signage is effective? the figures for investment and expenditure show that the billboard advertising sector is constantly growing, as are the associated revenues.

Digital signage, a highly effective tool?

Digital signage is a communication tool for displaying all kinds of content on a screen: text, images, videos, rich content...

An animated, interactive multimedia tool

Our brain understands, identifies and remembers visual elements more easily than text or sound. Studies by American psychologist Jerome Bruner lead to the following figures: we retain 10% of what we hear, 20% of what we read and 80% of what we see and do. This means that images, videos and interactive content have the best chance of being remembered. While static displays can display images, only digital signage screens can display videos or rich content.

75% of people remember digital signage

44% remember a static display

A memorable tool

Compared with other broadcast channels, digital signage also performs very well. A message broadcast on radio achieves a recall rate of 27%, while a static outdoor display achieves a recall rate of 30%. A message broadcast on television achieves 32% recall, and 52% for a message broadcast on digital signage screens. Thanks to animated content and the ability to target a specific location or audience, digital signage is extremely effective. 47% of people who have seen advertising on a digital billboard still remember it precisely 30 days later.

A convincing tool

What's more, visual content (images or videos) makes it easier to persuade. A research team at the University of Minnesota School of Management was able to announce the following figure: presenters using visual elements are 43% more effective than those not using them. In the field of point-of-sale, 80% of brands experienced a 33% increase in sales, particularly with regard to impulse purchases.

An attractive and popular tool

Digital signage is also a very attractive tool: 70% of people look at displays on outdoor digital panels, compared to 43% for advertising content on the Internet, and 41% on Facebook. In addition to its attractiveness, due to the possibility of animating displays and the high brightness of the panels, this type of display is also appreciated by consumers and passers-by. They can access up-to-date information (compared to posters), interact with the screens and obtain the information they want. At the point of sale, for example, 89% of consumers are in favor of dynamic signage.

Why install a digital signage solution?

The digital signage sector is growing rapidly, and will continue to do so in the years to come. It's a remarkably effective tool for attracting new customers, improving internal communications or precisely targeting an audience.

A digital signage system makes it possible to disseminate information quickly(alerts, for example), reach very large audiences and promise very precise targeting. Creating and distributing content via a digital signage system is very quick, and content can be reused many times. Screen network administration is usually carried out remotely and collaboratively.

This tool also helps to improve a company's brand image and reputation, notably by offering customers a better experience, engaging them more easily and sustainably through interactive content (games, interactive applications...).

Contextualized content, such as a campaign broadcast according to the weather outside, for example, will have a much greater impact, since it is broadcast at the right time to the right audience, with the precise aim of promoting a product and preventing a risk. 

If you have a digital signage project, ask for a demonstration.

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Sources

• Arbitron 2008: Digital Billboard Report: Cleveland Case Study
• Arbitron 2010: Digital Place-Based Video Study
• MarketsandMarkets 2016: Digital Signage Market worth 27.34 Billion USD by 2022
• Nielsen 2010: Awareness and Effectiveness of Digital Display Screens Installed In Grocery Stores
• IPSOS 2009
• KPMG 2007
• Intel 2010: A Report on a Field Trial of Anonymous Video Analytics (AVA) in Digital Signage
• Booz Allen Hamilton: Implementing a customer centric bank: The Rebirth of the forgotten branch
• Cisco 2012: Digital Signage for Retail: Attract and Keep Your Customers