PRI Releases Digital Signage Index

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The Platt Retail Institute (PRI), in conjunction with the Chicago School of Professional Psychology, has released the first North American Digital Signage Index (NADSI). The Index tracks the current level of business/industry activity, as well as changes in anticipated industry outlook. The Index is available for download at PRI's website.
 
The change in the Current DS Index for the third quarter is 10.83% above the second quarter 2009. This level of industry activity, in the midst of a major economic downturn, illustrates the underlying demand for the industry's products/services. Of the nine Index components, sales revenue and business activity registered the largest increases, while the capital expenditures and hiring components declined the most.
 
The change in the Near-Term DS Index for the third quarter is 15.12%. This reflects an optimistic outlook for the industry over the next three to six months. Of nine Index components, the sharpest rebounds are planned-for capital expenditures and hiring, demonstrating that firms are ready to invest heavily in anticipation of future growth. Estimated increases in selling prices (which outpace the rate of inflation), and the level of new/expanding networks increased the least, but were still in positive territory.
 
The NADSI also tracks performance in seven key industry sub-segments:  Software Firms, Hardware Firms, DOOH Networks, Professional Service Firms, Captive Networks, Content Firms, and Agencies/Brands. Some significant results include:

• Sub-Segment Current DS Index:  DOOH Networks (+18.25%) and Software Firms (+17.29%) recorded the highest change in the reported level of business/industry activity during the third quarter 2009 versus the second quarter 2009.
• Sub-Segment Near-Term DS Index: DOOH Networks (+37.69%) and Software Firms (+34.10%) recorded the highest change in the estimated level of business/industry activity over the next three-to-six months.

Responses to questions posed to participants found that financial concerns, proof of effectiveness, market share and staying current on emerging trends and business practices are major concerns for business managers. For the industry as a whole, issues surrounding acceptance of the medium, standardisation, and overexposure must be confronted. Similarly, measurement, network reach, and cross-network standardization are important challenges facing ad-supported DOOH networks.
 
The Current DS Index substantially outperformed five major benchmarks. These include U.S. Gross Domestic Product, Retail Sales, Total Advertising Revenue, Internet Ad Spending and Out-of-Home Revenue.