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31 Jan - 03 Feb 2023

Digital Signage Summit ISE sets ‘The New Agenda’

Digital Signage Summit ISE will address a number of important industry trends that together comprise ‘The New Agenda’ for Digital Signage. We talk to Content Chair Florian Rotberg, Managing Director of invidis consulting, about factors affecting the market.

Name three things that are affecting the digital signage/DooH sector. What effects are they having?
First, sustainability. What has changed, especially during the pandemic, is that there’s a greater consciousness around environmentally friendly, sustainable digital signage solutions. In the past, end-customers never really asked about power consumption, but this has changed dramatically. More and more of them are looking at green signage solutions, and that is making a big difference. This started in the Nordics, but it’s also coming to Germany and southern Europe. We’re seeing a big change there on the demand side.

What’s really interesting is that only 20% of the carbon footprint of LED/LCD digital signage comes from its production. The other 80% comes from the five years on average that device is used. This is the biggest lever we see. So it’s not about tearing out something you’ve installed and putting something else in there – that would be foolish; it’s really about finding more sustainable operational models. That means turning off LED displays at night, for example; currently the majority of LEDs run 24/7 because it was sometimes difficult to switch them on again in the morning – so instead just the content was turned off but the LED wall was left running, which is 40% of maximum power consumption. And not only does it use a lot of power, it generates a lot of heat, so the air-conditioning needs to run – it’s crazy. Self-service kiosk terminals on a factory floor or in an office building are often on 24/7 – but there’s absolutely no need for them to run at night if nobody’s there.

Second, consolidation. There’s a lot of consolidation going on as projects become more and more global. End-users are also looking for more global digital signage integrators. Some really big players are emerging, and what’s most interesting is that some of the first ones have been valued at over €100 million, so a lot of private equity companies have entered the market. It’s really taking off and we see dramatic changes in this drive to consolidation.

And third, connected experiences. Pro AV was previously planned and optimised within silos. Now these silos are being broken down to create connected experiences – almost orchestrating the different touchpoints. Rather than having a touchpoint here and a touchpoint there, now it’s about looking at the customer journey and making sure it follows a story.

For some years, everyone was talking about omnichannel but in reality they were doing multichannel. They optimised each channel for itself, but they never managed to connect them, to orchestrate them. Now for the first time, the big brands are really able to offer full omnichannel concepts.

The first ones who can do it are the vertically integrated companies like Zara, the Spanish fashion retailer, because they operate everything themselves – they operate the stores, they operate online. If you order from them, sometimes the package is shipped from the shop nearest to your house – it doesn’t come from a big distribution centre. In the past, many companies’ IT systems – ERP and warehouse management – were lacking. But now that their IT systems are better, the big brands are able to offer full omnichannel concepts.

These topics will be among those discussed at Digital Signage Summit ISE on Wednesday 11 May. Click to read more about DSS ISE and to book your place

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