Business | General
Dubai's signage industry poised for phenomenal growth in coming year
Digital signage spending on Dubai Metro and its stations could fetch Dh10 million per annum, just the tip of the iceberg, industry officials say.
- Gulf News Report
- Published: 23:32 December 15, 2008
- Image Credit:
Dubai: Digital signage spending on Dubai Metro and its stations could fetch Dh10 million per annum, just the tip of the iceberg, industry officials say.
The drastic reduction in advertising expenditure by retailers due to the global financial meltdown is boosting the fortunes of the UAE's infant digital signage industry which is now poised to grow by 125 per cent in 2009, according to industry sources.
"In a depressed market, advertising always gets the first hit, but the fact is that it is in times like these advertising is most critical," says Girish Mehta, managing director of Adventure Digital.
"If you are out of the consumers' minds, how do you push your products?
The key is to look for alternative tools for marketing and advertising, like e-marketing, direct marketing and digital signage."
International research has shown that almost 80 per cent of all purchase decisions are made in the stores. The versatility of digital signage allows retailers customise messages which will strongly influence shopper behaviour.
The expanding retail space in the UAE as a result of opening of new malls and shopping complexes is expected to boost demand for digital signage and other audiovisual systems.
The Dubai Metro alone is likely to invest over Dh10 million in digital signage hardware for its stations across the emirate.
"Hyper-markets and supermarkets in the UAE have started utilising in-house digital signage solutions using LCD display panels and leveraging cutting edge technology to influence consumer behaviour at the point of purchase.
Banks and companies are also realising the need to use their LCD screens not just for showing TV channels and news, but as effective tools for promoting their products," adds Mehta.
"Our research shows that while more than 70 per cent of branded retail stores have LCD or PLASMA screens installed, they either have no signal or are used to run TV programs or repeated commercials.
Financial constraints
Now, with tight advertising budgets, the retailers are discovering the benefits of this amazing technology," says Mehta.
Globally, the in-store digital signage technology has moved to the next level. Retailers now use SMART CART.
Adventure Digital, a division of Adventure Advertising, has launched solution in digital in-store signage in association with Sharp Middle East for providing full HD professional LCD panels which are specifically designed for such usage. The network is simple to install and operate. It uses a powerful compact PC, the size of a DVD player, connected to the Internet. Content is delivered on LCD screens.
Adventure Digital was recently commissioned by Marubeni Corporation, the contractor for Palm Jumeirah Monorail, to install digital signage at the four stations. Adventure Digital is the sole distributor for Sharp professional LCD screens in the UAE.
Location, high quality creative and versatility are the key factors attributed to the success of outdoor advertising campaigns, according to landmark research commissioned by Right Angle Media, the UAE's pioneering Out-Of-Home (OOH) media company.
The study, produced by independent researchers Mars Media Services, is a first of its kind in the emirate and was undertaken to measure advertising effectiveness in the outdoor advertising sector.
The research aims to establish a benchmark to enable businesses to better plan and measure advertising activity.
Scott Rowe, director of Sales, Marketing and Business Development, Right Angle Media, said: "Quantifying ROI is a marketer's chief mandate, although it's previously proved challenging in this market. It's essential that effectiveness outcomes can be accurately forecast and sustainable campaign objectives are matched with the media choice."
Dubai's air conditioned bus shelters consistently ranked highly in the study, which revealed that over 90 per cent of the general public has an awareness of bus shelter advertising and 67 per cent could name brands which had advertised on the shelters. 91 per cent of the general public rank air conditioned bus shelters as being a good asset for Dubai.
"While outdoor media is a universally accepted advertising channel, many misconceptions still exist in the industry, which were addressed by the research.
"Bigger advertisements are not always better. Vehicle count is also not a measure of effectiveness. Not all outdoor mediums work in the same way, their campaignable attributes vary significantly.
"Location, high quality creative and versatility of the media matter most, in order to ensure a good return," he concluded.
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