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SMS to Enable Interactivity for 40% of Network Digital Displays by 2012 Print E-mail

SCOTTSDALE, Ariz., November 19, 2008— The promise of interactivity between potential customers and display technology is only at its beginnings; however, advertisers are looking to enable a higher level of engagement with digital signage audiences by enabling a backchannel. Due to the simplicity of SMS messaging and the ubiquity of wireless handsets, 40% of new network digital display platform installations will leverage SMS for interactivity by 2012, according to recent research. This is up from approximately 5% in 2007.

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SMS is not the only manner for providing interactivity. Other wireless methods such as RFID, Bluetooth and Wi-Fi will also find significant penetration in interactive digital signage platforms. In 2008, 169,000 newly-installed digital displays had Bluetooth, RFID, Wi-Fi or SMS capabilities or some combination of these four protocols.

Wireless is the operative word for how digital displays engage customers. Implementing SMS interactivity is a path that opens new revenue streams and will bring back 1-to-1 marketing. MultiMedia Intelligence expects that no alternatives will find the potential success enjoyed by SMS.

MultiMedia Intelligence also found that:

  • In 2008, 90% of all networking connections from the servers to the set top boxes or digital media adapters in digital signage networks were Ethernet
  • Cabling options to the display include Ethernet, 1394, HDMI, Wireless HDMI, and coax. HDMI promises to comprise 70% of connections to newly installed digital displays by 2012. Cabling and related electronics will account for US$ 170 million in 2008 revenue for companies like Gefen and Belkin in digital signage.
  • Europe is becoming more significant in the digital signage market. Germany is seeing a significant rise in deployments with 5,000 new digital signage display screens expected to be installed in 2008.

The research report, "Network Digital Signage: Infrastructure, Displays, Technology," examines and forecasts key market verticals in the network digital signage market.

Forecasts are provided on an annual or per monthly average (e.g. PB/month) from 2007 through 2012. Forecasts include:

  • Digital Billboards – Revenue and Units Sold for Manufacturers and First-Year Costs and Maintenance
  • Digital Displays by Type and Digital Media Players by Type and Storage Solution
  • Set-top boxes with TV Tuners by Video Broadcasting Protocol
  • Costs Associated with Digital Signage Networks in cabling and Installations
  • Percentage of Wireless Interfaces that ask a Customer to Opt-in (RFID, Bluetooth, Wi-Fi, and Cellular)
  • Regional and Individual Country Spending for Digital Signage

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Rick Sizemore


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About MultiMedia Intelligence

MultiMedia Intelligence, a market research and consultancy firm, specializes on the markets and technologies for delivering and monetizing digital content and services across multiple platforms. We look beyond the classic 'three screens,' which include TVs, mobile handsets, and computers. We put markets into the broader context of the industry ecosystems that are converging and changing traditional business models.