“Which market segment is the one that is totally saturated with digital signage five years from now? (Is there a market where the gold rush is over and every new opportunity has been already taken?)”
Market segments that will be saturated in five years
The digital signage industry is exploding due to reduction in costs for hardware, while at the same time, the software has evolved to make it much easier to use. It is also becoming measurably easier for the companies and organizations that consider such investments to see the benefits of digital signage.
Competition is driving the technology to become simpler, cheaper and less expensive to run. Installation has also become much easier to accomplish in a timely manner.
Retailers have waited for these changes to take place in anticipation of making larger, system-wide commitments to digital signage. Retail has experienced both the benefits and the pain as the industry evolves across different sales channels, but they are clearly the main driver in demanding lower costs, ease of usage and analytics to substantiate ROI required for installing digital signage across all of their locations.
In the fast food industry, the desire to be able to change messages based on analytics and implement those changes immediately has proven the use of digital menu boards and POS signage linked to the POS system as critical. At Long John Silver’s, there are other benefits to adding digital signage. One of the main benefits is the reduction of human error in the execution of traditional menu boards when changing content. It is extremely time consuming to change out pricing or calorie stickers. The workers don’t have to go outside in all kinds of weather to change drive thru boards. It allows them to cook the great tasting food and service their customers. We also use customer intercepts to see how the customers like digital boards over traditional boards.
Retail has been the key accelerator in utilizing digital. For example, in the early years of digital signage applications, retailers learned by trial and error, which included the need to establish an ROI.
The overriding benefits of utilizing digital have been the improvement of an asset just by displaying high-quality graphics and improving workers production by allowing them to concentrate on their customers. In addition, dayparting a menu helps reduce menu clutter and improve sales at determined times of day by featuring what sells best at those times. With the addition of mandated calorie listings, it is even more important to analyze sales and customer reaction to reducing content and displaying it in the correct locations on the boards per day part.
Market segment that will not show growth in five years
I find it hard to single out an industry that can’t or won’t utilize digital signage. The issues for industries and organizations that don’t currently participate in digital signage are most likely lack of standardization and basic lack of awareness. There may also have been some companies, which may have dipped their toes into the digital signage arena early on, and without proper guidance may not have gotten the sales or financial results they were looking for, or were not properly capitalized to see the installment through to roll-out.