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Digital signage – that is, screens

that offer public information in retail

stores, transportation hubs, next-gen

billboards, hospitals and more – is a

fast-growing market fueled by ever-

better broadband and technological

innovation in the content arena. And

while it may seem like a niche play,

the role for channel partners in the

space could be a large one.

According to MarketsandMarkets,

the digital signage market was valued

at $16.88 billion last year, and is

expected to reach $27.34 billion by

2022, at a CAGR of 6.7 percent be-

tween 2016 and 2022. The firm said

that improvements in technology offer-

ings and infrastructure expansion is

likely to fuel the additional opportuni-

ties to offer the integration of real-time

data management tools, big data ana-

lytics and smart content, with multiple

presentations and dynamic interfaces

to further drive the market for public

commercial displays.

The firm also said that the growth of

the digital signage market for software

offerings is higher than that for hard-

ware offerings considering that displays,

media players, projectors, mounts and

other accessories don’t require frequent

purchases or replacements.

Kiosks held the largest market

share of the global digital signage mar-

ket last year and are expected to domi-

nate the market till 2022. Kiosks play

a significant role in the digital signage

market for providing access to informa-

tion and communications, commerce,

entertainment, education and other

applications; put simply, they are quick

and effective solutions, which can be

used virtually in all locations.

Aside from the overall market op-

portunity, SpinetiX research found that

digital signage is a great segment for

channel partners, with small installa-

tions from one to 20 screens being

the most common sale in both EMEA

and North America. Big projects with

more than 100 screens only represent

11 percent of total market.

SpinetiX also found that the aver-

age digital signage project duration is

typically three to five years. Content

production is a key element in the equa-

tion, so channel partners have to under-

stand how the end user will update the

content on the screen. Accordingly, pro-

fessional services represent 41 percent

of the average digital signage budget.

The scope as well as the overall budget

envelope (including capex and opex)

should be appreciated as a whole.

The small to medium enterprise

segment is obviously a sweet spot for

most channel partners, which here

have a golden opportunity to offer

ancillary technology, connectivity and

more along with the digital signage

solutions themselves.

“There is great potential for chan-

nel partners to bundle digital signage

solutions with third-party integration

to further differentiate themselves,”

a SpinetiX spokesperson told us.

“There’s a huge potential with CCTV,

queue management, building auto-

mation and more.”

In terms of specialized knowledge

or training, professional A/V and IT

channel partners are already skilled

to address the digital signage market

requirements – and networking and IP

skills are additionally valuable.

Above all, to be successful, part-

ners should vet their portfolio provid-

ers wisely.

“Channel partners need to work

with brands which value their role in

the ecosystem and have an integrity

on how they work with their channel

partners,” the SpinetiX spokesperson

said. “Too many players in the market

use the dealer to open the door of the

end user and then bypass the dealer

to take the good margin out of them.”

To put its money where its mouth

is, Convergent and SpinetiX kicked

off a channel partner program for

North America earlier in the year.

SpinetiX sells its digital signage

solutions primarily through distribu-

tors and dealers. And as a strategic

partner for North America since

2011, Convergent said that it made

a commitment to deliver more digital

signage business opportunities, addi-

tional business coaching and support

to SpinetiX channel partners.

“Our goal is to continuously improve

the digital signage experience of our cus-

tomers in every aspect,” said Francesco

Ziliani, CEO of Spinetix. “Following the

success of our channel partner program

in the EMEA region, we are focused on

growing our commercial presence in

North America. By growing our partner-

ship with Convergent in this way, we are

now truly ready to take the digital sig-

nage business to the next level.”

The program consists of four lev-

els tailored to reward participating

partners for their commitment, exper-

tise and performance. A partner gains

increasing benefits commensurate

with their commitment and proven

performance, such as special project

pricing, volume discounts, incremental

program support and supplemental

marketing resources.

“We are proud to expand our busi-

ness relationship with SpinetiX as a

SpinetiX Distribution Partner and play a

key role in growing the digital signage

market in North America by making it

more accessible to the companies who

previously considered it too complex or

unreliable for their environment,” said

Steve Schilling, president of Conver-

gent. “SpinetiX solutions fit very well

with Convergent’s mission to bring sim-

plicity, reliability, scalability and account-

ability to the digital signage industry.”

Digital Signage Lights Up

the Scene







July - August 2016