The Australia Digital Signage Systems Market Report 2010, compiled by consulting firm Frost & Sullivan, forecast that digital signage would grow at a steady rate of more than 12% per year to reach $58.4 million by 2013.
The report also claims that “a continuing shift in advertising dollars from print media to channels such as the internet and digital signage will further increase momentum, driving growth in the digital signage systems market in the years ahead”.
According to the report, the rise of digital signage is being partially driven by a decline in hardware prices, particularly among plasma and LCD screen systems.
The report also predicted that the market would soon expand outside its traditional public display areas such as airports, cinemas and retail outlets, and into banks, train stations, bus stops, car dealerships and medical centres.
Frost & Sullivan researcher Audrey William said: “The single biggest issue facing the digital signage systems market remains the challenge of demonstrating return on investment. Every company needs to be able to identify the right metrics to measure activity that links their screens to actual customer purchases.”
David Leach, owner of Sydney-based wide format printing company Look Print, told ProPrint he felt the digital signage market would continue to grow, but that it first needed to solve a few challenges before it poses a threat to traditional print signage.
One of the challenges he cited was the need for “uninterrupted power, security and maintenance”, which can increase costs and diminish ROI.
“Look Print has had several clients move towards digital signage only to remove it completely not too long later due to high running costs and unreliability,” he said.
“At Look, we believe that costs will drop and environmental, maintenance and recycling concerns will be addressed sometime in the future. This market will then come of age.”
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