Brands and Advertisers Gravitate towards Digital Signage Services in Brazil as Traditional Media Wanes
Convergence between this technology and mobile devices is now a prominent trend, finds Frost & Sullivan
SAO PAULO, Oct. 20, 2015 /PRNewswire/ -- As brands and advertisers across Brazil recognize the inherent shortcomings of traditional media, they are investing in newer marketing vehicles like digital signage. The technology has the ability to reach huge audiences and play engaging and targeted messages to them at the point of sale, transit or wait. Shrinking attention spans and erosion of customer interest and investments in traditional mass media have also contributed to this trend. Tremendous growth opportunities exist especially for digital signage and digital out-of-home media that can be deployed under multiple business models, including advertising, branding, merchandising, and disseminating information or entertainment to enhance the customer experience.
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The new study from Frost & Sullivan, Brazilian Digital Signage Services Market (http://www.frost.com/q295804262), focuses on the media player segment of the market. Media players, traditionally used to ingest and store video, audio, rich media and text assets, now distribute the content to displays according to a pre-defined schedule and list. They can power single or multiple displays, depending on the configuration. While media player software helps serve content to the screens, content management software drives the creation, scheduling and distribution of content to media players.
The Clean City Law, which prohibits advertising outdoors in both public and private realty and restricts the size of signboards in commercial establishments, has driven significant changes in the digital and mobile marketing strategies that brands and advertisers employ in Brazil. With the increase in mobile and tablet usage boosting the development of the data services market, convergence activities are picking up. Digital signage and mobile devices are converging as network owners in Brazil recognize that this could boost their potential to disseminate promotional messages to specific audiences.
However, one of the roadblocks network operators face is the lack of consistent bandwidth to stream high definition content to multiple screens. The difficulty to secure high-speed Internet connectivity to compress and send data between the central servers to the digital signage display end-points is another problem.
"In terms of bandwidth, the emergence of 4G could enable a host of innovative and interactive features on digital signage networks," said Frost & Sullivan Information & Communication Technologies Industry Analyst Maiara Paula Munhoz. "It will allow the use of media-rich 720 or 1080 pixel content and programming that was previously not possible without hard-wired networks."
Nonetheless, other challenges such as high importation taxes and expensive hardware remain. Some media players and system integrators are partnering with hardware vendors to reduce costs for customers and banks that can offer financing for these purchases. Hardware industries, on the other hand, have been positioning themselves in the city of Manaus to eliminate importation costs.
"Overall, the digital signage ecosystem in Brazil is quite complex, with a wide array of participants, including display vendors, software companies, media player manufacturers, ad agencies, audio visual integrators and tech support service providers," noted Munhoz. "The emergence of affordable turnkey bundled solutions and integrators, who take charge of the entire deployment from concept to ongoing maintenance, have nevertheless simplified the scenario and are driving interest across all segments of the market."
For more information on this study, please email Francesca Valente, Corporate Communications, at [email protected].
Brazilian Digital Signage Services Market is part of the Communication Services (http://ww2.frost.com/research/industry/information-communications-technologies/communications-services) Growth Partnership Service program. Frost & Sullivan's related studies include: Brazilian Companies Investments in ICT, Hot Topic—Over-the-top Video Services Market in Latin America, Mexico Total Telecommunications Services Market, and Colombian Telecommunications Services Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Brazilian Digital Signage Services Market
9ABB
Contact:
Francesca Valente
Corporate Communications – Latin America
P: +54 11 4777 5300
F: +54 11 4777 5300
E: [email protected]
SOURCE Frost & Sullivan
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