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What are the constraints in the advertising market of outdoor LED digital signage?

XMOZU 2019-03-02
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With the development of technology, digital outdoor has gradually become the mainstream. Now outdoor advertising pays more attention to content creativity, technology application and interactive experience. With the improvement of mobile payment related supporting fields, outdoor media will ultimately realize the function of guiding sales, thus promoting product sales.
Although China's outdoor LED digital signage advertising market has achieved rapid development, there are still five factors restricting the further development and growth of the industry in the market.

LED digital signage Market Chaos

Nowadays, the disorder of outdoor LED advertisement market competition is obvious. Although the products produced by some large enterprises with high technology level and excellent production quality are too hard, they have high cost and high price. In order to gain more market share, many small and medium-sized enterprises have to produce a large number of products with lower quality, which makes the whole industry produce the phenomenon of "bad money expels good money". 

Urban Advertising Planning Setting Up Disorderly

With the continuous promotion of urbanization in China, outdoor advertising is gradually expanding to second and third-tier cities, but now and then outdoor advertising arbitrarily set up in major cities still occurs. Not only does it destroy the harmony and beauty of the city environment, but also it is easier to trigger large-scale renovation of relevant government departments. At the same time, the advertising company's own operation during this period has also been greatly affected.

Fragmentation of Outdoor Advertising Enterprises

Nowadays, the fragmentation of outdoor advertising enterprises is very serious. The state of regional fragmentation urgently needs further improvement. Many outdoor advertising companies have a single variety of media resources, lack of scale and network, and can not effectively integrate the media to meet the needs of multimedia communication in the Internet era.

The industry standardization system is not perfect.

Domestic outdoor advertising industry norms and unified media value evaluation system have not yet been established and improved, which leads to major enterprises in the industry operating independently, lack of professional data guidance, and lack of scientific evaluation of the effect of advertising release. At the same time, the industry's non-standardization has led to the chaos of market quotation, discount system and dark box operation, which not only damages the reputation and operation of many companies, but also causes great harm to the healthy development of the whole industry.

Enterprises lack innovation

Because of the vicious competition of "low cost, price war" and the lack of innovation spirit in the industry market. However, many enterprises have poor service quality, insufficient use of new technology, new materials and new technology and lack of service guarantee, so the operation of enterprises is extensive, and it is difficult to effectively meet the needs of advertisers.