LED outdoor advertising market is facing an inflection point, and display companies need to change
The development of LED outdoor large screen is closely related to the prosperity of outdoor advertising market. Both share weal and woe. The development of outdoor advertising is closely related to the economic development. The economic situation is booming, and outdoor advertising will also flourish, and vice versa.
In 2010, China’s GDP surpassed that of Japan and became the world’s second largest economy after the United States. With the rising tide, China has also rapidly grown into the world’s second largest advertising market. In 2016, the market size of China’s outdoor advertising industry reached 117.4 billion yuan, accounting for 18.09% of the advertising market size of 648.9 billion yuan. According to the statistics of the China Commercial Industry Research Institute, by the end of 2018, China’s advertising business volume was nearly 700 billion yuan, ranking second in the world, and the scale of outdoor advertising was further expanded.
(In 2019, China will still be the largest contributor to the growth of global advertising, with an increase of more than US $4.8 billion, ranking the first in the world)
The growth of outdoor advertising will undoubtedly promote the development of outdoor LED display. However, in 2018, China’s GDP reached 90 trillion yuan, an increase of 6.6% over the previous year, and the growth rate was the lowest in recent years. As the domestic economic growth slows down, the development of outdoor advertising also slows down, and the outdoor LED display market is inevitably impacted.
China’s LED display screen originated in the late 1990s, originated from the emergence of single and dual color display screens, until the rise of LED full-color screens, which gradually replaced the original neon light box advertising, and finally became the most important outdoor advertising carrier in the city. After the Beijing Olympic Games, the development of LED outdoor display has experienced rapid growth in successive years. Relevant data show that in 2018, the scale of outdoor LED in China has shown a trend of rapid growth for nine consecutive years. It is estimated that by 2021, the scale of outdoor LED display in China will reach 15.7 billion US dollars (about 100 billion yuan), with an annual growth rate of 15.9%.
Such a huge market is a huge treasure house for LED display enterprises. In order to compete for the outdoor display market, the competition among enterprises is also very fierce. However, in recent years, due to the rectification and cleaning of outdoor advertising, the outdoor advertising market has been affected to a certain extent, and the traditional outdoor LED display market has also been impacted to a certain extent
Outdoor advertising cleaning, the development of traditional LED outdoor large screen is blocked, but it brings opportunities for the development of LED transparent screen. LED transparent screens are mostly attached to glass curtain walls, or are favored by the market for their indoor installation and outdoor viewing, which will not affect the overall beauty of the city when the screen is off. Its unique creativity and novel display effect also inject fresh vitality into the outdoor advertising market.
However, although the outdoor LED display screen is affected by the cleaning of outdoor advertising, which provides a good development opportunity for the LED transparent screen of the subdivided products, after all, the LED transparent screen has its limitations and is difficult to act as the main force of LED outdoor advertising. No matter how the situation develops, outdoor LED display is still the “darling” of outdoor advertising, and is a very important and cool advertising carrier.
In the face of the slowdown in the growth of the outdoor LED display market, the industry competition has shown a more intense posture. In order to gain competitive advantages, some enterprises start with products, or improve the display effect, or integrate third-party technology to enhance competitiveness; Others take the quickest means – price reduction.
For a long time, lowering prices is the fastest way for enterprises to expand market share. However, price reduction is also a double-edged sword. Although it can enable enterprises to expand market share in the short term, it has squeezed profits and its growth mode is not sustainable. And if there is a price war, it will seriously damage the interests of the entire industry, and the result will be a burning stone. It is precisely because the price war harms others rather than benefits itself that it is deeply hated and rejected by the industry.
In the face of the slowing development and increasingly fierce competition in the outdoor LED display market, enterprises need to change the past business model, and need to innovate in products, so as to achieve the goal of “I have what I have” and “I have what I have”. The way of competition is not only the price advantage of products, but also the competition of quality and enterprise brand.
It can be seen from the development trend of the current household LED display screen that the outdoor display screen is developing in a landmark and functional way. In the past, LED outdoor display screens were unpopular, largely because of the randomness of their installation, which did not well accommodate the development of the urban environment, leading to their widespread criticism. Some landmark outdoor screens not only avoid this problem, but also add a display of scenery to the city. In the future, with the development of 5G, LED outdoor display will usher in new development space, such as the development of lamp pole screen.
Of course, the most important thing is to understand the development trend of the outdoor advertising market. Now is the digital era, and the outdoor advertising media is gradually moving towards digitalization. As the terminal display media, how to better adapt to the market development and meet the use requirements of advertisers is the top priority. After all, for LED display companies, only by making money for advertising owners can they make more money.