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Tapping Into Digital Signage: Vertical Opportunities Arise For VARs

By Kristin Bent
September 21, 2012    12:45 PM ET

Page 2 of 2

Whether in retail or the enterprise, the digital signage market is expected to grow rapidly over the next few years. Industry analyst IHS iSuppli projects that, as the price of commercial displays continues to drop, signage shipments this year will reach nearly 17.3 million units, a big jump compared to the 15.4 million units that shipped in 2011. For VARs, this means now is a better time than ever to jump on board.

"Now that the price and reliability of hardware has reached an affordable price point for the savvy retailer … the investment costs are reduced, which ultimately yields a faster ROI," said Ping HD's Goldsmith.

"Digital signage is no longer shrouded in black magic, and resellers that are prepared and understand the technology can take part in a rapidly growing, global multibillion-dollar industry."

As with any digital signage offering, VARs can also couple their hardware offering with software or content management solutions to bring in recurring revenue. With the surge in adoption of social media sites like Facebook as a means to reach end customers, solution providers face a new opportunity to integrate these media outlets into their digital signage offerings, as well, explained Ernest Koury, president of Eureka! Media Group, a ViewSonic partner based in El Paso, Texas.

"We still see strong demand from both QSR and retail outlets. We are also seeing a larger demand to bring more value out of the digital signage," Koury said. "My company provides various content solutions including realtime Facebook and Twitter feeds onto [clients'] displays, which better connects their customers to their brands."

Whether in retail or the enterprise, the digital signage market is expected to grow rapidly over the next few years. Industry analyst IHS iSuppli projects that, as the price of commercial displays continues to drop, signage shipments this year will reach nearly 17.3 million units, a big jump compared to the 15.4 million units that shipped in 2011. For VARs, this means now is a better time than ever to jump on board.

"Now that the price and reliability of hardware has reached an affordable price point for the savvy retailer … the investment costs are reduced, which ultimately yields a faster ROI," said Ping HD's Goldsmith.

"Digital signage is no longer shrouded in black magic, and resellers that are prepared and understand the technology can take part in a rapidly growing, global multibillion-dollar industry."

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