We’ve been living with the Covid-19 virus for over a year as we prepare for confinement. This crisis has had a significant economic and psychological impact aside from the health aspect. How about the advertising screen industry?
How has this affected our company? The IREP, in collaboration with Kantar and France Pub, recently released the 2020 BUMP. This study, conducted annually and quarterly, assesses the French advertising market.
As a result, the year 2020 will be defined not only by the various constraints but also by their consequences. This health crisis is accompanied by increased environmental awareness and a desire to digitize spaces. So many factors will impact the LED advertising panel sector in the long run.
THE IMPACT OF THE HEALTH CRISIS ON THE MARKET FOR ADVERTISING
When we look at the curve of economic activity in France, we can see the influence of the restraints and the summer comeback.
Yet, it stays lower for the year as a whole, albeit this is not true for all industries. This time we significantly influenced the communication sector, which declined by 21% for the year 2020. Web communication is the only advertising category that is doing well, with a 0.5% increase.
Nevertheless, the advertising industry had a swift comeback during the summer resurgence, with a near return to normal in terms of investment. Apart from advertising investments, there are also ramifications for the number of advertisers.
Nonetheless, this remains modest, with just a 9% decrease in the number of sponsors. Furthermore, this reduction was more pronounced among local advertisers than national advertisers.
2023 ADVERTISING SCREEN MARKET REVIEW
Overall, the evaluation of SMD Screens is tough. However, we may depend on DOOH data. It combines all types of outdoor digital communication. This industry has likewise been in the full boom for several years, with a net gain of 20.9% in 2019. Consequently, we see a 41.9% fall in the DOOH sector by 2020, implying a return to the level of 2017 / 2018.
Despite this, the allure of technology remains. This may be observed in the number of project requests received this year. Many of them, though, are looking forward to brighter days. If the DOOH industry is one of the hardest-hit communication industries, it pales compared to movie advertising.
PROSPECTS FOR ADVERTISING LED SIGNS IN 2023
Despite the dismal 2020 record, there are grounds to be optimistic. Thus, despite a decline in 2020, communication investments remained at 26.45 billion euros. As a result, this market continues to be a source of enormous savings. If 2023 is still set against a health crisis, we should witness an economic recovery and, in particular, a fresh summer resurgence.
Moreover, the BUMP predicts that GDP will resume at the same pace of growth, with a period of short-term recovery followed by a period of medium-to-long-term expansion. The same might be said about the communication industry. Indeed, following a 2023 recovery that should allow it to approach the level at the end of 2019, 2022 should match the projections given before COVID.
This is especially true for advertising screens. Moreover, the appeal of these goods, the drive for digitalization, and a more democratic offer should promote the usage of these instruments.
Globally, the same is true. Moreover, according to a Market & Market analysis, the average yearly increase will be 11.2% through 2026. The global market for communication displays is predicted to grow from 16.3 billion to 27.8 billion dollars.