The Electronic Message Center Survey, Part Deux

This is the second year in which ST has conducted an electronic-message-center survey, as a second-generation version of our former electronic-digital-signage survey.
The results are most interesting when they substantiate findings from last year’s inaugural edition. We expected significant discrepancies because 2009 was such an atypical year, and because the number of respondents significantly differed.
In a macro sense, most interesting is that respondents’ collectively reported only a 6.3% decline in overall sales from 2008 to 2009. This contrasts sharply with the average sales-volume decrease of 18.5% reported last month in the Vinyl Survey. It essentially matches the 6.7% average overall sales decline reported last year when comparing 2008 to 2007. Not good, but not as bad as expected.
Data was obtained the same way as last year: email blasts to registered users of Signweb and by posting the survey questionnaire on the same website. Yet this year’s 60 responses pale in comparison to last year’s 112. We can only guess that 2009 was such a bad year that fewer people wanted to be reminded by dredging up the gory details.
We split the responses into the same four sales-volume categories as last year, and one aspect became clear. Companies with sales between $1 million and $5 million are very interested in EMCs. Why? In seven of the 10 tables presented, all 18 companies responded. You’ll see a fluctuating number of responses for most of the other categories.
Here are some highlights:
• Sign companies that suffered declining sales in 2009 outnumbered those who enjoyed a sales spike by roughly a 3:2 ratio (Table 1).
• EMC sales, as a percentage of overall sales, also declined slightly, by an overall average of 4.0% (Table 2).
• Schools emerged as the most common EMC purchaser, as 64% of respondents sell to them (Table 3).
• Monochromatic and full-color displays are virtually identical in popularity (Table 5).
• A 19mm pixel pitch is the most common EMC resolution (Table 6).
• An equal number of respondents report both 5,000 nits and 9,000 nits as the most popular EMC brightness levels (Table 7).
• More than half of the respondents say they encounter dwell times of seven seconds for EMCs in communities they serve (Table 9).
• Less than one of six respondents shares revenue with their EMC customers, but a majority actually have sold some content (Table 10).

 

Our respondents
The bad news is, only 60 responded, compared to 112 last year. The silver lining is 59 provided sales-volume information, which is only three less than last year.
Responses tended to come from smaller companies this year. The average sales volume of nearly $2.7 million is 22% less than last year’s $3.4 million (Table 1). The most responses came from companies with sales of less than $500,000, whereas last year, the best represented sales-volume category was $1 million-$5 million.
As noted, the average respondent encountered a 6.3% sales drop from 2008 to 2009. Interestingly, how-ever, the rates of average sales’ gain/decline were very similar: 21 companies increased their sales by an average of 22%, and 36 saw sales drop by an average of 23%. In all four sales-volume categories, the average respondent experienced a sales decline, and more respondents suffered declines than gains.
Overall, this year’s respondents are slightly more dependent on EMC sales, even though EMC sales as a percentage of overall sales also declined by 4% (Table 2). Conversely, these respondents said EMCs account for more than 20% of their overall sales, whereas last year that figure was 18%. Fifteen respondents said their EMC sales increased by an average of 18%, whereas another 21 respondents said their EMC sales dropped by an average of nearly 23%.

 

Their customers
Schools emerged as the primary customer category among eight specific choices (Table 3). However, “other” actually was selected by 2% more respondents (66%). Last year, the leader had been shopping centers, which this year tied for third. With 163 choices having been selected, the average respondent sold to 3.2 of the nine (including “other”) customer categories. Last year, the average respondent sold to 3.8 customer categories. Significant dropoffs occurred from casinos, banks and shopping centers.
As always, interestingly, even though governmental entities impose EMC restrictions, one of every four respondents reports selling EMCs to governmental entities.

 

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Types of EMCs
As to what types of EMCs are sold, every respondent except one sells EMC message displays (Table 4). Time-temperature EMCs were again the second most prevalent type, with six of every 10 respondents selling them. Yet no one reported selling a DOT-type EMC, even though seven respondents had reported doing so last year. Otherwise, the numbers are roughly equivalent to those of last year.
In terms of complexity, customers seem to equally want the most or the minimum from EMCs. As noted, like last year, monochromatic displays barely edged full-color displays in popularity, while multicolor displays paled in comparison (Table 5). Monochromatic’s 1% lead from last year (44% to 43%) “doubled” to 2% this year (44% to 42%).
The second half of Table 5, however, leaves us scratching our heads. This year’s respondents report 86% of the EMCs they’ve sold are being used outdoors. Last year, the exactly opposite occurred, as 92% of the EMCs were reportedly used indoors.
We must assume that this year’s figures are more correct, because the higher brightness levels shown in Table 7 certainly suggest outdoor use.