Popai Global Digital Signage Research

Digital Signage: Trends und Potentiale im deutschen Markt Dr. Stephan Telschow

Agenda POPAI Global Digital Signage Research

POPAI Global Digital Signage Research What Are the Objectives? Getting to know …  Size and “definition” of the Digital Signage industry  Main business potentials for solution providers and suppliers  Expectations of all relevant stakeholders  Opportunities for investors, media industry, brand industry, retailer and other stakeholders Clear facts on …  Current Digital Signage projects worldwide – general approach, strategy & concept, equipment & solutions, business case & expectation, procedures & stakeholders  Identifying high potential industries, countries and retail sectors Deeper insights on …  Drivers and barriers for Digital Signage solutions  Concepts – expected viewer benefits, impact on retailer and brands  Future trends of the market Page 3 www.g-i-m.com

POPAI Global Digital Signage Research Who did we survey? Digital Signage Industry  Turn-key provider  Content (agencies, media sales) Markets  Infrastructure (networks, screen, …) Online Survey  North- (and South)America Potential Users  Europe  Retail  SE-Asia  Service  (Australia) Indepth  Out of Home  (Africa) Inquiry Advertising Brands  FMCG  Luxury  Automotive N  1034 online Interviews with experts Over 40 indepth interviews with experts Page 4 www.g-i-m.com

Agenda Der Markt in Deutschland

Der Markt in Deutschland Most probable development of Digital Signage „What do you think is the most probable development of the medium Digital Signage?“ (Top2-Boxes 'totally agree' and 'agree') 85% Will become generally accepted. 84% Will be a niche solution for certain 45% 31% communication tasks. Will remain confined to few 19% 11% sectors as a niche solution. Total D-A-CH 49% Will become the key medium. 57% Will compete with TV, print, radio, 64% 60% internet, ... Will replace current POP 52% 33% communication tools. Will replace TV, print, radio, 16% 12% internet, ... 0% 20% 40% 60% 80% 100% Basis n ≦ 795 Page 6 www.g-i-m.com

Der Markt in Deutschland Expected Average Market Growth „What market growth do you expect for the entire Digital Signage market in your region within the next 3 years?”: Average market growth per year. Total 32% Asien 31% Total Asien 28% D-A-CH D-A-CH Europe North America Europe 30% North America 31% 0% 20% 40% 60% 80% 100% Basis n ≦ 795 Page 7 www.g-i-m.com

Der Markt in Deutschland An average project Total Asia Europe North D-A-CH America Average number of screens per 29 17 35 26 19 location 3 Mio. € 6 Mio. € 2 Mio. € 6 Mio. € 2 Mio. € Average capital expenditure per project 7 months 8 months 9 months 9 months Average duration of implementation 8 months 16 months 16 months 18 months 15 months 19 months Average duration until break even 42 months 48 months 40 months 37 months 44 months Average total running time Digital Signage seems to be highly profitable: Current projects have an average running time of 3.5 years. They need one year until break even. Page 8 www.g-i-m.com

Agenda Woran liegt es?

Woran liegt es? Markets and Potential High Potential China India USA UK Russia Canada Japan Middle East Germany Italy South Africa France Mexico Australia Pacific Southern America Scandinavia Southern Europe Eastern Europe Suisse Low Potential Netherlands Northern Africa Underdeveloped Dynamic Mature Page 10 www.g-i-m.com

Woran liegt es? Retail Markets: Sales Growth and Profitability. Source: Deloitte – 2008 Global Powers of Retailing. 12,8% Afrrica / Middle East 2,5% 8,1% Asia / Pacific 2,8% 5,2% Japan 2,2% 6,3% Europe 3,3% 6,9% France 4,5% 2006 Retail Sales Grow th 2006 Net Profit Margin 4,6% Germany 3,4% 6,2% UK 3,4% 12,9% Latin America 4,4% 1 ,7% 1 North America 3,8% 1 ,6% 1 US 3,5% 0% 20% 40% Page 11 www.g-i-m.com

Woran liegt es? Media-Market – Growth 2008 30,0% Argentina 25,0% China 13,2% 21,2% Russia 19,3% 8,0% India 8,0% Brazil 5,3% Spain 3,5% Universal McCann 3,7% Aegis / Carat US 2,6% 3,5% UK 6,3% 3,3% Italy 3,1% 3,2% France 2,6% 2,4% Germany 0,7% 1,3% Japan 0,5% 0% 20% 40% Page 12 www.g-i-m.com

Woran liegt es? Media-Landschaft Source: Lagardère Publicité – Ad„Barometer, TNS Media Research, Nielsen Media Research, CEASA, CICOM Germany 52% 32% 5% 6% 5%1% Spain 31% 50% 9% 7% 3% 1% France 35% 38% 8% 12% 6% 1% Italy 29% 55% 6% 7% 3% 1% UK 35% 38% 5% 9% 12% 2% Press Television The Netherlands 27% 54% 10% 5% 4% 0% Radio China 23% 50% 5% 16% 6%0% Outdoor Japan 28% 46% 4% 12% 11% 0% Internet Cinema Russia 16% 57% 5% 20% 2% 1% US 29% 43% 12% 4% 12% 0% Australia 48% 28% 8% 3% 11% 1% Brasil (w/o Online) 28% 60% 5% 5%2% Mexico 14% 64% 9% 9% 1% 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Page 13 www.g-i-m.com

Agenda Herausforderungen

Herausforderungen Greatest Challenges from a Provider Point of View Only Providers. „What areas of Digital Signage do you consider to be the greatest challenges in the future?“(Multiple answers) 48% Concepts (content-related/strategic) 46% Financing 40% Management of contents 39% Accompanying research and measures for optimization 38% Availability of contents adapted to the medium Long-term project management 32% Compatibility of DS-software 16% Transmission on the \"Last mile\" 15% Signal distribution 15% Displays and other reproducers 11% Basis n ≦ 438 0% 20% 40% 60% 80% 100% Page 15 www.g-i-m.com

Herausforderungen On the Road to Success – What is needed? Using the Potentials of Digital Signage Marketing Concepts Research and Media Measurement Page 16 www.g-i-m.com

Herausforderungen Digital Signage – Comparative Advantage Percentage of respondents Compared to other POP media, what are the most important advantages of Digital Signage? 92% 78% Quick update of content 86% Especially targeted address of customers in certain 79% 63% 73% usage situations 75% 63% Possibility of local adaptation (contents) 69% 61% 39% Address of special target audiences 57% 50% Providers Modernness 56% 58% Customers 43% High acceptance from view ers 29% Advertisers 39% 41% Cost advantage 29% 25% 19% Little effort involved 14% 22% 17% High acceptance from staff 6% 17% 5% Other 4% 3% Basis n ≦ 795 0% 20% 40% 60% 80% 100% Page 17 www.g-i-m.com

Herausforderungen On the Road to Success – What is needed? Using the Potentials of Digital Signage Marketing Concepts Research and Understanding Page 18 www.g-i-m.com

Herausforderungen Places to be – Optimal Contexts for Digital Signage Wide Reach, high Footfall Specialised Target Defined Receptivity Situation Need for Information Idle time Immediate Purchase Impact Page 19 www.g-i-m.com

Herausforderungen Communicative Approaches Wide Reach, high Footfall Sales Specialised Target Shopping Experience Defined Receptivity Situation Consumer Education Need for Information Brand Awareness / Brand Building Idle time Targeting Immediate Purchase Impact Page 20 www.g-i-m.com

Herausforderungen On the Road to Success – What is needed? Using the Potentials of Digital Signage Marketing Concepts Research and Understanding Page 23 www.g-i-m.com

Herausforderungen Media-Research ? Brands Shopping Experience ?  Sales Impact ? Content Recall Format  Reach Screen Position Awareness Customers  Staff Acceptance Page 24 www.g-i-m.com

Herausforderungen Where to find more details www.PopaiDS.com Page 25 www.g-i-m.com

Herausforderungen Where to find more details Content:  Overview about concepts, approaches, technologies world wide Solutions for different business sectors Financing and Media Sales Results from researches  Capabilities and Expectations of all relevant players on the market  Regional Learnings from America, Europe and Asia Page 26 www.g-i-m.com

Thank You. Gesellschaft für Innovative Marktforschung Dr. Stephan Telschow Schumannstraße 18 10117 Berlin +49 30 240009-10 www.g-i-m.com / s.telschow@g-i-m.com For internal use only. This work is protected by copyright. All rights reserved. It is provided for internal use only and may not be republished, reproduced or retransmitted in any form without the express written permission of GIM.

Popai Global Digital Signage Research

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