Opportunity
Problem
The Digital Signage Software Market is poised to achieve a valuation of USD 42 Billion by the conclusion of 2036, exhibiting a steady growth rate at a CAGR of 13.2% throughout the forecast period spanning from 2024 to 2036. As of 2023, the industry’s scale for digital signage software had already surpassed USD 10 Billion.
The market’s expansion is attributed to the increasing global recognition of digital advertising for both products and services. With multiple competitors vying for attention in every sector, digital advertising stands out as the preferred choice, consequently propelling market growth in the upcoming year. Projections suggest that the global expenditure on digital advertisements will surpass USD 500 Billion by 2024.
The market landscape is further influenced by the introduction of new products, such as leak detector systems, home monitoring solutions, and intricate financial products. Additionally, the amplified demand for digital signage in public and commercial spaces contributes significantly to the market’s growth trajectory. Positive drivers encompass rapid urbanization, evolving lifestyles, amplified investments, and increased consumer spending, collectively fostering the industry’s expansion.
North America is expected to maintain the largest market share throughout the forecast period, accounting for approximately 31%. The Retail Industry has undergone significant expansion, characterized by continuous efforts among organizations to improve product quality through extensive research and development. This has led to an abundance of suppliers in the market, particularly in the United States and Canada.
The region’s increasing expenditure on advertising is projected to further drive market growth. Studies suggest that over 70% of American consumers are more likely to explore new stores due to digital signage, indicating the technology’s potential to revolutionize the retail sector.
In Europe, the digital signage market is projected to secure a substantial market share by 2036. The market is witnessing growth due to the escalating use of digital technologies such as LED, LCD, and projection systems for displaying various content types, including streaming media, digital images, videos, and diverse information. Automotive leaders in the region are also embracing digital signage solutions to enrich the customer experience, expected to contribute significantly to market growth in Europe.
Challenges concerning the security of digital signage persist. Without adequate physical security measures, digital signage software remains vulnerable to tampering by unauthorized individuals. This underscores the necessity for a robust security system to avert illicit access and potential video display manipulations by hackers through digital signage, as this could detrimentally impact consumers. Failing to implement such security measures may limit the growth potential of the global market in the foreseeable future.
Fig 1:Digital Signage Software Market Overview: Global Market Analysis by Region, 2036: Aurora
Solution
The challenges facing digital signage software, particularly in terms of security vulnerabilities, necessitate a multifaceted solution approach. To effectively address these issues, a series of key strategies need to be implemented.
It is imperative to establish robust security measures. This involves the implementation of encryption techniques, secure authentication methods, and regular software updates to patch vulnerabilities and prevent unauthorized access. Such measures are crucial to safeguard the integrity and security of the system. Ensuring physical security measures for the digital signage systems is essential. This includes placing the hardware in secure locations, using locks or enclosures to prevent tampering, and employing surveillance measures to deter potential breaches.
The use of firewalls and network security measures is vital in protecting against external threats. Configuring secure networks, limiting access to authorized personnel, and implementing intrusion detection systems are integral components of this approach. Regular system monitoring and maintenance are also critical. Conducting routine checks and consistent monitoring of the digital signage systems for any anomalies or security breaches is essential to ensure that the software is up-to-date and operating securely.
Educating users and administrators on security best practices is equally important. Providing training and guidelines can prevent unintentional security breaches, such as sharing sensitive information or falling victim to social engineering tactics. Collaboration with cybersecurity professionals or firms is recommended. Working with experts to conduct thorough security audits, identify potential vulnerabilities, and establish proactive measures can significantly enhance the overall security posture of the digital signage software.
It is crucial to ensure compliance with relevant data protection laws and industry standards to protect user data and maintain trust among consumers. This involves rigorous attention to regulatory compliance and privacy practices. Continuous improvement and adaptation are key. Staying updated with the latest security trends and technological advancements enables businesses to adapt and improve security measures to address emerging threats and vulnerabilities effectively. By combining these strategies, the security concerns surrounding digital signage software can be mitigated, creating a safer and more reliable environment for both businesses and consumers.
Market
The expansion of digital signage in commercial settings, the rising demand for it in infrastructure applications, and the surge for 4K and 8K displays represent significant technological advancements propelling the digital signage industry’s growth.
In 2022, North America held the largest share of the digital signage market. This dominance can be attributed to the abundance of digital signage software providers and the widespread adoption of advanced technologies like IoT, particularly in the retail and hospitality sectors.
Furthermore, the increased commercialization of 5G technology and the growth of Fiber optic networks have led to higher utilization of digital signage across various sectors such as retail, institutions, public entities, government, and other rapidly digitalizing fields. These advancements are anticipated to fuel the expansion of the digital signage market in the region.
Canada, with its relatively stable economy, is also expected to experience a substantial increase in digital signage adoption shortly. This surge is primarily due to the expansion of retail spaces and the transformation of traditional retail stores into smart stores.
Fig 2: Global Digital Signage Market Projection: Aurora
The Digital Signage Market is expected to reach USD 26.1 million by 2028 from USD 18.7 billion in 2023, at a CAGR of 6.9% from 2023 to 2028.
Technological advancements and the subsequent use of technologies such as the internet of Things (loT) growing need for real-time content management, and the growing usage of smart signage have specifically driven the growth of the digital signage software market globally. In recent years there has been a significant increase in the purchase of digital signage software owing to its benefits.
Moreover, the development and growth of system-on-chip displays have also led to the market growth for digital signage software. Regular purchases and upgrades of software licenses are expected to significantly contribute to the market growth of digital signage software.
The leading market participants in the digital signage industry comprise:
1. Samsung Electronics Company Ltd (South Korea).
2. LG Electronics (South Korea).
3. Sharp NEC Display Solutions, Ltd (Japan).
4. Panasonic Corporation(Japan)
4. Leyard Optoelectronic Co. Ltd (China).
5. Sony Group Corporation (Japan).
6. HannStar Display Corporation (Taiwan)
7. Barco (Belgium)
8. FUJITSU (Japan)
9. Siemens (Germany)
10. AU Optronics Corp (Taiwan)
11. Chi Mei Corporation (Taiwan)
12. Schenider Electric (France)
13. Mitsubishi Electric Corporation (Japan)
These companies have implemented a blend of organic and inorganic strategies, including product launches, collaborations, joint ventures, and partnerships, to fortify their market standing.
Roadmap
Our roadmap will ensure Aurora takes a good look at all aspects of the business requirements.
This will result in a strategic tool that will serve as a guide for better and more effective management. It will help us to identify opportunities and challenges and will also focus our attention on important questions to be tackled.
Aurora is currently planning to leverage our agility, flexibility, and expertise to expand our team as needed. As such, the roadmap for our business expansion can be summarized as follows:
- Vision, strategy, and goals.
- Setting revenue and profitability targets and following strict financial controls.
- To increase the number of client services by at least 20% per year through superior performance and word-of-mouth referrals.
- Provide accurate forecasting and projections that will remain conservative to protect the investment of all parties.
- Focus on promising what we deliver and acting conservatively to ensure all invested parties’ assets are protected.
Aurora’s roadmap to success will encompass several key strategies and initiatives:
- Innovation and Product Development: Continual innovation in both hardware and software to stay at the forefront of technological advancements in the digital signage industry. This involves enhancing existing features, exploring new technologies, and adapting to evolving market trends.
- Expansion of Market Reach: Identifying new market segments and opportunities for growth, both domestically and internationally. This could involve strategic partnerships, targeted marketing efforts, and exploring untapped industries that can benefit from digital signage solutions.
- Enhanced Customer Experience: Prioritizing customer satisfaction by focusing on improving service, support, and engagement. This includes streamlining customer service processes, personalized support, and adapting solutions to address specific client needs.
- Agile Operations and Efficiency: Continued emphasis on lean operations, leveraging automation, AI, and a skilled workforce to ensure operational efficiency. Being agile in adapting to market changes and customer demands will remain a core focus.
- Sustainability and Energy Efficiency: Developing more environmentally friendly solutions and energy-efficient technologies to align with global sustainability goals. This might involve exploring eco-friendly materials, reducing energy consumption, and promoting green initiatives.
- Strategic Partnerships and Collaborations: Forming strategic alliances with complementary technology providers or industry leaders to offer more comprehensive solutions and access new markets.
- R&D and Adaptability: Investing in research and development to stay ahead in innovation and stay adaptable to embrace new trends and technologies as they emerge.
- Marketing and Brand Visibility: Developing a comprehensive marketing strategy to increase brand visibility and outreach. This could involve targeted advertising, participating in industry events, and leveraging digital marketing channels to attract new clients.
- Data Analytics and Insights: Strengthening capabilities in data analysis to refine product strategies and improve user experiences based on insights derived from customer behavior and market trends.
- Long-term Vision and Continuous Improvement: Maintaining a long-term vision while continually striving for improvement across all aspects of the business – from technology to customer service, ensuring a commitment to ongoing growth and success.
Geographic Milestones:
While Aurora currently maintains an international presence with customers, the company aims to strengthen its foothold, focusing initially on establishing a stronger presence on the West Coast of the US and the New England areas.
Revenue Milestones:
Financial targets will be set by the owner for the next few years.
Breakeven Milestones:
Anticipating an annual cost of $500,000 per employee, encompassing base salary, benefits, and travel expenses, we estimate that the breakeven point would be reached with approximately $6 million in annual SaaS residuals.
Biggest Milestone:
Aurora’s most significant milestone at present is securing funding to assemble our desired team, encouraging them to comfortably transition from their current corporate positions. Once achieving financial stability, the next objective is to attain profitability and build upon that foundation.
Growth: 1, 3, and 5 years:
Product/Service Milestone:
Aurora’s Proprietary Hardware Plan – Unveiling Our Media Player in the Future.
Aurora is embarking on an ambitious product milestone with the development and imminent launch of its proprietary hardware, specifically a self-engineered media player. This strategic initiative aims to bolster the company’s product line, offering an all-encompassing solution that integrates hardware and software components.
The decision to create an in-house media player aligns perfectly with Aurora’s commitment to innovation and excellence. It enables the company to exercise greater control over the performance, compatibility, and features of the hardware utilized in its digital signage solutions. This initiative not only enhances the company’s technological capabilities but also solidifies its position as a more cohesive and holistic provider within the digital signage market.
Aurora’s plan to introduce its unique media player marks a significant stride forward, promising a more tailored and optimized hardware solution to complement its existing software offerings. This milestone emphasizes the company’s unwavering dedication to delivering top-tier, end-to-end digital signage solutions, precisely catering to the evolving requirements of its diverse clientele.
Velvet:
Next Generation Signage, Entertainment, and Revenue Generator
Aurora’s version of the Freemium+
Aurora launched in 2009 as Fly-N-Hog Media Group, selling advertising in high-traffic locations on digital signage screens. There wasn’t affordable software available, so we created our own. We had to toss the first version and rebuild the platform to stay alive. We initially wrote and submitted our first patent application in 2011. We were granted our patent in 2016 which is based on smartphone interaction with digital signage including an emphasis on advertising.
Fast forward to 2023. We adjusted our focus out of advertising and solely on selling a horizontal, user-friendly SaaS that our customers can use to sell their own advertising space or display their content, separate from Aurora.
In Oct 2011 we discussed building an advertising portal into the software including a bidding system for advertisers to market on business owners’ digital signage screens. This idea was never scrapped but also never became a focus as we pivoted from advertising to selling software directly to companies for internal use. Although the bidding system could work, with developments in software, we can now incorporate an advertising purchasing feature almost like a dating service where advertisers and screen owners are matched, content is filtered, and then approved through automation for display.
Ads are no longer just JPEGs or MP4s but can be interactive streams with influencers, videos, games, coupons, or music. Out-of-box hardware would be programmed for advertising, user content, and API streams and could be given as a freemium, leased, or directly sold.
Once the hardware is paid off with generated advertising revenue, revenue sharing can begin. Screen owners’ accounts could be credited or debited each month based on the streams, advertising, or APIs displayed on their digital signage screens. The media players can be geo-tracked and monitored. Advertising rates can be set using Google Analytics, busyness times, or other resources currently available. Advertising spots will be sold to advertising agencies or directly to companies in a model like social media advertising.
Company Overview
Aurora traces its roots back to April 15, 2009, when the Robinsons initially invested as silent partners in an advertising platform. Under the name Fly-N-Hog Media Group, they began selling advertising on digital signage in high-traffic locations. They encountered a lack of affordable, user-friendly software, prompting them to develop their own internally. The company placed its first digital signage screen on August 25, 2009, at La Huerta restaurant in Fort Smith, Arkansas, expanding to nearly 100 advertising locations over time.
Facing challenges and red flags, Susan joined Fly-N-Hog full-time merely six weeks after the initial investment. Subsequently, Brent transitioned from his position at Maverick Transportation to sell advertisements for Fly-N-Hog five months later.
In the nascent stages, Aurora explored potential partnerships, such as with Pilot, Loves, and TA during the ATA convention in Las Vegas, recognizing the value of these interactions for the company’s future direction.
Early on, it became apparent that separating from the original owners of Fly-N-Hog was necessary. The Robinsons acquired their territories, which were run on what is now Aurora’s software platform. This transition marked a shift where the Robinsons took over the software and intellectual property rights.
Acknowledging the greater value of the software, Aurora launched as a separate entity on February 12, 2012, in Fayetteville, AR. In subsequent years, the company divested its interests in Fly-N-Hog to concentrate solely on Aurora, which led to Fly-N-Hog’s closure in 2016.
In 2014, Aurora entered a partnership with Verizon Wireless as a digital signage provider in their Sell With program, but Verizon later developed its platform, which ceased selling digital signage in 2022 due to issues.
A pivotal 2017 interaction introduced Aurora to the Wal-Mart digital signage team, aiming to digitize boards for the National Center for Missing and Exploited Children. Although the project eventually went dormant and was reassigned, Aurora retained the feature on its platform for potential future use.
In 2015, Aurora installed its first screens at Bank of the Ozarks (now Bank OZK) in Fayetteville, AR. Despite delays due to COVID-19, the system rollout was completed in early 2021, generating close to $300,000 in recurring revenue each year.
Notably, Brent’s meeting with Vapor Maven in 2019 led to a contract and subsequent installations, now yielding over $120,000 in annual recurring revenue.
Throughout its evolution, Aurora has transitioned from an advertising-based model to a software-focused approach, refining its operations, streamlining tasks, and leveraging partnerships, ultimately arriving at a point where it could independently manage all facets of the business without the need for additional hires. This strategic shift liberated resources, allowing the company to thrive, expand, and capitalize on its accumulated knowledge and dedicated expertise.
