Note: Electronic digital signage (EDS) includes electronic, multimedia displays such as LED, LCD, CRT, OLED, plasma and projection systems. It also includes important ancillary industries -- software, content development and more -- and the various rising technologies in laboratories now.
You’re reading the second annual, electronic-digital sign survey (observing 2003’s results) and, right off, we’re reporting that the industry isn’t any more defined than last year’s survey indicated. If anything, it’s more jumbled.
It’s easy to see why -- the electronic digital sign/display industry is a vast, loosely held and ever-changing confederation. It includes scriptwriters, graphic designers, video and web producers, audiovisual producers, software programmers, content- and routing-software production companies, mega-corporations, engineers (lighting, software, electronic and computer), component makers, systems marketers, resellers, integrators, sign and display makers, systems installers, and, in the end, an assortment of welders, fabricators and electricians. What’s more, this list doesn’t include such ancillary operations as computer makers, camera and accessory manufacturers, advertising agencies or related tradeshow producers.
Survey method
Although this survey shows trends, coalitions and affinities, keep in mind that Signs of the Times’(ST) staff gathered and analyzed the information, so it’s an informal survey. You may gain formal, sign-industry information by referencing ST’s annual “State of the Industry” reports, published in every July and August issue.
This year’s respondents include signmakers, display and lamp manufacturers, software producers, component and display manufacturers, systems integrators, content creators, systems managers and more. We twice e-mailed 500 EDS questionnaires (to ST and ElectronicDisplayCentral.com readers) and received 46 replies (9%), compared to 250 sent last year, with 38 (15%) replying. If you’re a marketer, you’ll be interested to know that we e-mailed the survey participation requests twice, one week apart, to receive the 9% response. We also implemented an easy-reply system -- once the respondent opened our e-mail, he or she only needed to click on “Reply,” type the question’s answers, then click on “Send.”
In last year’s survey, we wrote, “The beauty of e-mail distribution was that people could, and did, fire back immediate questions.” The same held true this year. As before, the respondents’ primary concern was that we’d fasten their dollar-sales information directly to their company name; we didn’t. Nonetheless, 15 companies omitted their 2003 EDS sales figure, while 29 were kind enough to provide the information.
What to call it
Business and technology writers -- we’re technology writers -- commonly tidy up industry-born terms, because, as you know, many descriptive nouns loosely describe a system or product. Where, for example, is the hyphen in your car’s dashboard?
Our objective wasn’t to denounce other’s appellations, but, after consideration, we determined the phrases “electronic digital displays” (EDD), or “electronic digital signage” (EDS), best describe the collective systems. By illustration, consider ActiveLight’s term, “dynamic digital signage.” It illustrates a marketing designation, an “advert,” the British would say. It’s a perfectly legitimate description, but not a technical one. Here are a few other classifications you’ll find when reading of this technology: Narrowcasting, in EDS provinces, describes a digitally coded (electronic) signal’s flow from a computer-based routing system to the display itself. Outside the display industry, the word describes bounded radio or television signals; it’s the opposite of broadcasting. Examples are closed-circuit, college television systems or the crowd-dispensing audio beam dispensed by the U.S. Army’s Long Range Acoustic Device. It narrowcasts “earsplitting noise in a directed beam.”
Digital signage, for 10 years, has referred to printed media produced on an inkjet, thermal-transfer or other digital-type printers. Already in common use, the term may confuse the reader when used to describe EDS.
Information displays can be tracked to the Society of Informational Displays (SID), San Jose, CA. Trouble is, the phrase doesn’t tell you if the sign is electronic or digitally fed. In fact, the pole-mounted, changeable-letter sign you see in front of small-town liquor stores -- “Coors 12-pk / $4.99” -- is an information display.
In the final analysis, and although clarity is critical to communication, everyday life still proves that dissimilar words work. Truth is, you may sit upon a couch or sofa; both are comfortable.
More than one field
In 2002, 34 (89%) of the 38 respondents were working in more than one EDS field; in the 2003 count, 38 (83%) of the 46 respondents were working in more than one field. Of the 29 companies reporting LED, three firms reported it as their only activity; only two firms indicate LCD as their sole technology. Interesting too, is that 33 respondents (72%), more than double last year’s count, indicated they were involved in script, story or video production; 18 (39%) said they produced computer graphics, and 14 (30%) were involved in Web systems. A new category this year, wireless systems, received 21 (46%) clicks.
Here’s the technology-focus breakdown: LCD, 29; LED, 26; plasma, 23; projection systems, 23; content production, 16; CRT, 15; other, 12; content management, 7; OLED/electroluminescent, 5; evolving technology, 2; and E-ink, 1.
The above list totals 159; the mix ratio (159/46) is 3.46, meaning each company has 3.5 display-type activities, on average, on its palette.
The money
Last year, the total (2002) dollar count (for 26 reporting companies, employing 527 people) was $302.1 million. The high-dollar company listed $148 million; the least company listed $200,000. Then, because of the dollar/sales span and variety of business activities, we didn’t even try to average the income. We declined this year, too, but we have included a range of stats, to give you an idea of industry earnings (Fig. 5).
Unfortunately, 15 respondents didn’t disclose their 2003 sales figures; otherwise, you’d see a substantially higher total than the $1,210,045,000 -- four times higher than last year. Several large companies (made known by their employee total) participated, but they chose to withhold their sales figures. Two participating companies individually employ more than 3,000 people; contrastingly, 13 firms employ less than 10.
The survey shows that levels of activity don’t affect a company’s income -- the high-dollar company listed five total activities, as did the lowest-dollar company. The second-to-top company listed just two. One mid-range company ($2 million) reported seven activities (the high count): LEDs, CRT, LCD, plasma, projection, content production and other; another company listed similar activities but didn’t include its overall sales figure, so we don’t know its financial health.
As noted, LCD, LED, plasma and projection systems are the most popular. Twenty-nine companies (63%) use LCD; 26 (56%) use LEDs, and 23 (50%) use plasma (Fig. 6). Only two (4%) companies deal solely in content management and production; their sales were $5 million and $2.5 million. Indicative of the industries continuing expansion, only two companies list LED as their sole activity.
In the mix, systems integrators scored 71% against last year’s 62%. Wireless technology, this year’s added category, got a 45% score. OLED increased by 2% (Fig. 2).
Future investments
Fifteen companies increased their research-and-development budgets by an average of 52%; the high was 300%. We also learned that 23 companies’ marketing budgets increased by an average of 50% -- 200% being the high. These figures attest to continued interest, growth and more new products.
Seventeen companies (37%) revealed business-sharing agreements with other firms; 50% of respondents market internationally, 45% nationally and 5% regionally. In 2002, 69% marketed internationally, 25% nationally and 6% regionally.
What they’re doing
The following list (Fig. 1), based on 46 reporting firms, indicates technologies. Bear in mind, most respondents reported more than one activity: script writing, 42%; story production, 22%; computer-graphics creation, 40%; video production, 29%; audio-video system usage, 47%; web-system usage, 31%; wireless-system installation, 13%; routing-system creation or installation, 82%; program-software creation or installation, 56%; narrowcasting usage, 53%; display manufacture, 33%; display-sign creation, 49%; retail-display creation, 60%; display installation, 62%; other, 13%.
To be ubiquitous
This year and last, the most uniquely answered question was: “What do you see as important steps to be taken before the EDS field becomes more commonplace?” Last year’s survey revealed that the high cost of displays was the prime gripe of 15 (39%) respondents, while six (16%) worry over zoning regulations, and seven (18%) believe educating buyers will make EDS ubiquitous.
This year, of 27 respondents, 15 remarked on the high cost of displays and nine reflected upon educating the buying market. Six asked for technology improvements. Here are some typical answers:
“Overcome the upfront cost hurdle.”
“Lower cost of displays.”
“Lower display pricing.”
“Price.”
“Standards, ratings and lower-cost hardware.”
“Reduced cost, more permissive outdoor permitting, better turnkey solutions.”
“LED-life improvement and price reduction.”
“Public knowledge base growing.”
“Major rollouts by major players, acceptance by Madison Avenue and Wall Street.”
Our favorite? “Stay working.”
