DACH Signage Expectations Rise

OVAB Europe’s Digital Signage Business Climate Index (DBCI) tracks sentiment in the signage industry. Sentiment was up in the latest results (July/August) from the DACH region; the professional displays segment performed especially well in an annual comparison, rising in triple digits.

The DACH DBCI rose 3.9 points to 58.55: up 14.9% YoY and 7.1% compared to the last survey. The current business situation is conservative, with 65.1% (from 68.2%) of respondents saying that it was ‘good’ and 32.1% (from 27.1%) saying that it was ‘satisfactory’. The outlook for the near future was up. More than half of surveyed companies (55.7%, up from 52.3%) expect their business situation to become more favourable over the next six months.

More than 80% of companies expected revenues to rise this year, despite 11% recording lower revenues in the first two quarters. The region was found to not be overly concerned with the prospect of an economic fallout, following the UK’s vote the leave the EU.

YoY, sentiment in the professional displays segment rose 110.7%, although the segment remains volatile. From Q4’15 to Q1’16, sentiment rose 2.5%, and was down YoY by almost 7%. Q4’15 combined with Q1’16 represented the bulk of all annual growth seen over the last several years.

System integrators continued to have a positive view of the market, although more than half do not expect any additional growth over the next six months. Another positive segment was software vendors, which showed good responses compared to the previous survey.

OVAB noted that, while the DOOH industry experiences a traditional summer slump in advertising spend, it is expected to see improvements in Q4.