At an age where traditional media is dwindling down due to the rise of digital marketing, the digital signage market is flourishing. According to a recent procurement research by SpendEdge, the market would grow at an impressive rate of over 7% until 2021. The key to its success is its ability to stream dynamic content with high visibility in both indoor and outdoor advertising. Digital signage unlocks numerous possibilities for advertisers to broadcast their message and persuade consumers towards the brand creatively. However, the application of digital signage is not limited only to advertising but also for public information, navigation, schedule information, and disseminating product information. A proper procurement process ensures effectiveness in the digital signage market.
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Digital Signage Market: Key Challenges and How SpendEdge Can Help Procurement Teams Overcome Them
Here are some of the reasons why procurement processes are essential in digital signage market:
Effectively Tackle Market Growth Constraints
One of the biggest challenges in the digital signage market is its low resistance to extreme weather conditions. Procurement professionals should figure out ways to protect LCD panels from fluctuating temperatures, harsh weathers, dust, insect, and direct sunlight. They could achieve such protection by using cabinets that encases the digital signage, but such costs should be incorporated into the Total Cost of Ownership along with other maintenance costs.
Ensures Compliance
The suppliers in the digital signage market have to abide by various rules and regulations. Highway safety and public safety regulations have to be considered during the procurement process by ensuring proper illumination and safe installation. Additionally, the procurement team should also consider the Town and Country Planning (Control of Advertisements, England) Regulations 2007, which states that the buyer must ensure that the location is clean and fix any damage that might have been caused during installation.
Identification of Top Suppliers
A well-established procurement process is a good place to start for identifying the top global suppliers as well as best regional suppliers. The market is dominated by established players like SAMSUNG, LG, Sharp, Panasonic, and SONY. Also, regional suppliers operate in a niche market and provide solutions in a regional market like Planar Systems in North America, Peerless-AV in Europe, and NEXCOM International Co. in APAC region. Based on suppliers capability and buyers requirement, procurement professionals can find a right supplier fit for the organization’s need.
Read more about the procurement process in the digital signage market along with supply market landscape, pricing, and procurement insights in SpendEdge’s upcoming report on the global digital signage market.
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