As we begin a period of confinement, we have been living with the Covid-19 virus for over a year. Beyond the health aspect, this crisis has had a significant economic and psychological impact. What about the advertising screen sector?
How has our business been impacted? A few days ago the IREP in partnership with Kantar and France Pub released the BUMP of the year 2020. This study, carried out annually and quarterly, takes stock of the advertising market in France.
The year 2020 is therefore marked by the various confinements, but also their consequences. This health crisis is also accompanied by increased ecological awareness, but also by a desire to digitize spaces. So many elements will have an impact in the more or less long term on the sector of LED advertising panels.
IMPACT OF THE HEALTH CRISIS ON THE ADVERTISING MARKET
When we observe the curve of the evolution of economic activity in France, we notice the impact of the confinements and the summer rebound.
However, over the year as a whole, it remains down although this is not valid for all sectors. The communication market was very impacted by this period and fell by 21% for the year 2020. The only advertising segment that is doing well is web communication with a slight growth of 0.5%.
In addition, the advertising sector was marked by a rapid recovery during the summer rebound with a virtual return to normal in terms of investment. Beyond investments in advertising, there are also consequences on the number of advertisers.
However, this remains lower with an overall drop of only 9% in the number of advertisers. Moreover, this decline was more marked among local advertisers than national advertisers.
2020 REVIEW OF THE ADVERTISING SCREEN MARKET
It is quite difficult to make an overall assessment of SMD Screens, but we can easily rely on DOOH data. Indeed, it brings together all forms of outdoor digital communication. This sector had also been in full expansion for several years within 2019 a growth of 20.9%%, a net growth stopped. Indeed, over the year 2020, we observe a decrease of 41.9% in the DOOH sector, i.e. a return to the level of the years 2017 / 2018.
Despite all the attraction for technology is still there. This can be seen in the number of contacts received this year for project requests. However, many of them are looking forward to better days. If the DOOH sector is one of the hardest-hit sectors of communication, it is nothing compared to that of cinema advertising.
PROSPECTS FOR 2021 FOR ADVERTISING LED SIGNS
Despite this sad 2020 record, there are still reasons for optimism. Indeed, although down in 2020, investments in communication still represented 26.45 billion euros. This market, therefore, remains a vector of significant savings. If the year 2021 will still be against a background of a health crisis, we should see a recovery of the economy and in particular a new rebound for the summer of 2021.
In addition, according to the BUMP, the GDP should start again at the same rate of growth, marked initially by a period of short-term recovery and then by medium-to-long-term growth. The same would apply to the communication sector. Indeed, after a 2021 recovery which should make it possible to reach the level of the end of 2019, 2022 should align with the level of the forecasts made before COVID.
This is all the more true for advertising screens. Indeed the attraction for these products, the desire for digitization, and an offer that is becoming more democratic should accelerate the use of these tools.
The same is true globally. Indeed, a study carried out by Market and Market forecasts average annual growth of 11.2% until 2026. The world market for communication screens is expected to increase from 16.3 billion dollars to 27.8 billion.
read more: Top 6 Technology Trends for 2022
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