OVAB Europe
Digital Signage Business Climate Index March/April 2014
BENELUX
Belgium | The Netherlands | Luxemburg
14. April 2014
Digital Signage Market Briefing EMEA – ISE 2014
Note | Firefox PDF-Viewer
When using the Firefox PDF-Viewer pdf.js it is possible that graphics and pictures will be shown
incorrectly.
Therefore we recommend to use Adobe Acrobat Reader.
invidis – founding member of
Digital Signage Business Climate Index - DBCI Benelux March/April 2014
DBCI - Introduction
 The OVAB Europe Digital Signage Business Climate Index (DBCI) is the leading
European indicator of the economic development of the Digital Signage and Digitalout-of-Home industry
 It is polled every two months by invidis consulting in cooperation with OVAB Europe
 Questions:
 Current business situation: “good”, “satisfactory” or “poor”
 Expectations for the next six months: “more favorable”, “unchanged” or “more
unfavorable”
 Benelux – first poll March/April 2014:
 Benelux is the 5th largest market in Europe (in units of public displays) for Digital
Signage
 DBCI Benelux: 59,98 base points
 Over 70% expect a more favorable business situation within the next six months
 Only 5% expect a negative outlook for the industry
© invidis consulting GmbH 2014
ovab.eu/research/dbci/
Page 3
Digital Signage Business Climate Index - DBCI Benelux March/April 2014
Very positive business sentiment and good expectations in Benelux
positive
100
90
80
70
60
59,98
50
slightly
positive
40
30
20
10
0
-10
slightly
negative
-20
© invidis consulting. 2014
-30
negative
-40
-50
-60
-70
 The digital Signage Business Climate Index Benelux has been
polled for the first time in 2014. The Index stands at almost 60
base points, reflecting the current positive business
sentiment of the Digital Signage industry in Benelux
 Steady growth over the full year 2013 and a very strong yearon-year showing of the first quarter in 2014 is driving the
Digital Signage and DooH Market
 The considerable decline in hardware prices over the last 3
years made the installation of bigger and more sustainable
Digital Signage networks much more affordable
 Increasing demand for interactive and “engaging” solution is
strengthening the high demand for specialized integration
and content creation services and products
-80
-90
-100
Fig. 1: DBCI Benelux March/April 2014, n=20
© invidis consulting GmbH 2014
Survey facts
• Participants: n=20
• Region: Benelux
• Time frame: 2014 calendar weeks 11 &12
ovab.eu/research/dbci/
Page 4
Digital Signage Business Climate Index - DBCI Benelux March/April 2014
High satisfaction with the current business situation in Benelux
Question: How do you rate the current business situation for your
products / services in the field of Digital Signage?
good (+)
March/April 2014
65,0%
25,0%
10,0%
satisfactory (o)
poor (-)
© invidis consulting. 2014
0%
20%
40%
60%
80%
100%
Fig. 2: DBCI Benelux March/April 2014“business situation”, n=20
© invidis consulting GmbH 2014
ovab.eu/research/dbci/
Page 5
Digital Signage Business Climate Index - DBCI Benelux March/April 2014
Great expectations by the Digital Signage industry for the summer
Question: What are your expectations for the next six months?
more
favourable (+)
March/April 2014
70,0%
25,0%
5,0%
© invidis consulting. 2014
0%
20%
40%
60%
80%
unchanged (o)
more
unfavourable (-)
100%
Fig. 3: DBCI Benelux March/April 2014“business expectations”, n=20
© invidis consulting GmbH 2014
ovab.eu/research/dbci/
Page 6
DBCI March/April 2014
ADDITIONAL QUESTIONS
Digital Signage Business Climate Index - DBCI Benelux March/April 2014
Robust demand in the SMB sector for Digital Signage solutions
Question: How many projects did your company roll out in the following
categories in 2013?
60% of all DS projects in 2013 were
small installations with up to ten
displays

Small projects have a high margin and
can be carried out successfully by
most players in the market

5%
3%
9%
100 to 500 displays
22%
50 to 99 displays
Falling hardware process created a
high demand for easy-to-use Digital
Signage solutions in the SMB sector

Only 7% Digital Signage networks
consist out of more then 100 displays

Large projects generate high revenues,
but discounts increase with the
number of hardware used and tear
into the margin. Moreover, only few
market participants can sustainably
carry out projects with over 100
displays
© invidis consulting GmbH 2014
More than 500
displays
11 to 49 displays
32%
60%
28%
© invidis consulting. 2014

6 to 10 displays
1 to 5 displays
Fig. 4: DBCI Benelux March/April 2014 “project sizes 2013” , n=13
ovab.eu/research/dbci/
Page 8
Digital Signage Business Climate Index - DBCI Benelux March/April 2014
Retail is the most significant market for the Digital Signage industry
Question: In which vertical markets has your company rolled out the most
projects in 2013?


Retail is with approx. 35% of all Digital
Signage revenues the biggest vertical
market. Customer engagement, marketing
and ambient installations become more
and more common not only in most highstreet retailers, but also in small and
medium businesses
The corporate communication vertical
market has grown exponentially over the
last few years. The digitization of employee
communications is now seen as a
sustainable investment by many
companies
Public is the third biggest vertical market.
About 2/3 of the total revenues are
generated in the education segment
especially for white boards in schools and
for student communication networks at
universities
© invidis consulting GmbH 2014
Hospitality &
Restaurants
Transportation
DooH
Public2)
Industry
Corporate
Communication
Retail
1)
Tourism
Leisure
© invidis consulting. 2014

Fig. 5: DBCI Benelux March/April 2014 “vertical markets
Healthcare
Fairs &
2013” , n=18
Exhibition
1)
2)
food/non food, mall, banking, telecommunication
government & education
ovab.eu/research/dbci/
Page 9
Digital Signage Business Climate Index - DBCI Benelux March/April 2014
The relevance of DooH has significantly increased, but …
Question: How do you estimate the change of the relevance of DooH in the
general media-mix within the last 24 months?


4/5 of all polled companies are convinced
that the relevance of DooH compared to
other media has increased within the last
24 months
15,4%
Through a continuous expansion of the
big DooH networks, the media has
considerably increased its presents in the
public eye
30,8%
Increase
84,7%
A revenue increase of approximately 10%
in DooH gross spendings in 2013 mirrows
this increased interest1)

However, almost 40% of all poled
companies see only a slight increase

In the Netherlands the DooH market is
only 3% of the total OoH market (Belgium
1%), compared with for example the UK
(approx. 20%) this is still very small1)
1) Kinetic
© invidis consulting GmbH 2014
Strong increase
Slight increase
38,5%
15,3%
© invidis consulting. 2014

No change
Fig. 6: DBCI Benelux March/April 2014 “relevance DooH” , n=13
ovab.eu/research/dbci/
Page 10
Digital Signage Business Climate Index - DBCI Benelux March/April 2014
The relevant reach is still the most daunting challenge
no challenge
Question: Where do you see the most
demanding challenges for the DooH
media today?


Reporting
The polled companies estimate that the relevant
reach is still the most daunting challenge for the
DooH media
The difficulty here is to offer a network that has a
national reach combined with a relevant target
audience. The most successful business cases in
the Netherlands are the Passenger TV networks,
airport media at Schiphol and different retail
related networks like the ABN Amro, Shell petrol
stations and central station NL networks
Other challenges concern the management and
operation of the advertising and booking process.
Bundling is again important to create the relevant
reach. Moreover, online availability and booking
possibilities make handling of the media more
simple and a professional reporting creates
higher trust with the advertisers and agencies
© invidis consulting GmbH 2013
high challenge
Online availability/booking
posibilities
Advertising
materials DooH
Relevant target
group
Bundling of different
networks
Implementation
of a campaign
Comprehension
of DooH USPs
Relevance of the
media DooH
© invidis consulting. 2014

moderate
challenge
low challenge
Competitive CPM
Relevant reach
Fig. 7: DBCI Benelux March/April 2014 “challenges DooH” , n=13
ovab.eu/research/dbci/
Page 11
DBCI March/April 2014
SPECIAL:
INVIDIS DIGITAL SIGNAGE FOCUS MARKETS
EMEA 2014
Digital Signage Business Climate Index - DBCI Benelux March/April 2014
High
EMEA Focus Marktes | Forecast 2014
DE-AT-CH
Market dynamics1)
UK & IE
UAE
Russia
Saudi Arabia
Poland
Nordics
France
Turkey
Benelux
Italy
Low
Spain
1)
2)
Low
Unit growth/potential
In units
© invidis consulting GmbH 2014
High
Tendency
Market size2)
ovab.eu/research/dbci/
© invidis consulting. 2014
Page 13
Digital Signage Business Climate Index - DBCI Benelux March/April 2014
Europe Top 5 Markets | General Economic Cycle 2014
% of DS
Market
Europe
The ‘bookends‘ of
the European
economy
– Germany
and the UK –
both, high
performers in Digital
Signage
Slow
Downturn
Germany
17,4%
UK
France
16,6%
Consistent
Growth
Fast
Upswing
15,3%
Spain
Italy
4,4%
8,3%
Recovery
Slow
Upswing
© invidis consulting. 2014
© invidis consulting GmbH 2014
ovab.eu/research/dbci/
Page 14
Digital Signage Business Climate Index - DBCI Benelux March/April 2014
Roadmap 2014 & Contact
2013

The next survey will take place in calendar weeks 19 & 20
of 2014.

The next planned publication date will be the 22nd May
2014.

The DBCI is polled by invidis consulting and published in
cooperation with OVAB Europe.

If you are not yet part of the DBCI survey please contact
us for further information.

The DBCI will be extended to other markets in 2014. For
further information please contact Daniel Russell.
January
February
March
April
Mai
May/Jun. | 22. 05.
Jun
July
Jul./Aug. | 24.07.
Contact:
Sep./Oct. | 18.09.
Daniel Russell | Junior Analyst
invidis consulting GmbH
Rosenheimer Str. 145e
DE-81671 Munich
Daniel.Russell@invidis.com
Nov./Dec. | 20.11.
Phone: +49 89 2000416-21
Mobile: +49 151 62438503
August
September
October
November
December
© invidis consulting GmbH 2014
www.invidis.de
Page 15
Digital Signage Business Climate Index - DBCI Benelux March/April 2014
© invidis consulting GmbH 2014
ovab.eu/research/dbci/
Seite 16
invidis consulting GmbH
consulting , research & communications
Managing Director: Florian Rotberg
Register Court: Amtsgericht München
Register No: HRB 165816
VAT-ID: DE 253 622 672
www.invidis-consulting.de