Russian DBCI Recovering, DACH Trends Down

Since the last survey in January, the Digital Signage Federation Europe (previously OVAB Europe) reports that Russia’s Digital Signage Business Climate Index (tracking sentiment in the DOOH industry) has regained its positive trend. The DBCI dipped to negative figures at the start of the year (-3.56), but climbed to 31.55 in March/April.

In January/February, 28.6% of respondents felt that the current business situation was good and 53.6% that it was satisfactory. 17.9% felt that it was poor. In the most recent survey, 57.9% said that it was good, 26.3% that it was satisfactory and 15.8% that it was poor. Expectations about the future have also risen, with 36.8% expecting a favourable change in the next six months and 47.4% expecting no change.

A stronger national currency and recovering oil prices helped to boost the Russian economy towards the end of Q1. This was reflected in a general sales increase in the LFD market, and in new digital signage product developments. Stakeholders now believe that the bottom of the market was reached last year, and stagnation will now continue to alternate with slow growth.

Just under 20% of all signage revenues in Russia came from shopping centres. Signage in Russian shopping centres is almost exclusively indoors, due to the harsh climate, and installations are increasing. The public (government) market is the second-largest vertical, and continues to rise slowly. The third market is corporate communications. Rising IT budgets mean that this area is now seen as a sustainable investment by many companies.

New networks will drive Russian DOOH in the future. Almost 70% of market participants expect this development to have the most positive impact on the market in the coming years. An expansion of existing networks – mainly upgrading existing technology – is also expected.