1. advertising machine industry overview

Advertising machine is a kind of media terminal that uses LCD screens, projectors and other equipment to play advertisements. It is widely used in shopping malls, supermarkets, hotels, cinemas and other public places. Advertising machine has the advantages of wide coverage, numerous and good communication effect, and is an important carrier in the era of digital media.

According to different installation methods and use scenarios, advertising machines can be divided into wall-mounted advertising machines, vertical advertising machines, touch advertising machines, projection advertising machines and other types. According to different functions and technical characteristics, advertising machines can be divided into single-screen advertising machines, network remote control advertising machines, 3D stereoscopic display advertising machines and other forms.

2. Advertising Machine Industry Market Status

1. Market size

According to data from the Champ Consulting Group,China Digital Signage (DS) market size declined to $9.58 billion in 2020 due to the new crown epidemic. With the effective control of epidemic prevention and control and the gradual recovery of the economy and society, the size of China's digital signage (DS) market rebounded in 2021, reaching 10.65 billion billion yuan, up 11.2 percent year-on-year. 2022Year reached117Billion yuan, year-on-year growth10%。ExpectedFrom 2023 to 2026, China's digital signage (DS) market will maintain a stable growth trend, reaching 16.49 billion billion yuan in 2026, with a compound annual growth rate of 9.1.

As an important part of digital signage (DS), the market size of advertising machines also shows a similar trend. The size of China's advertising machine market was severely affected by the epidemic in 2020, with the market size falling to a minimum of 8.64 billion billion yuan. In 2021, as the epidemic situation slowed down, the market size of China's advertising machines showed a warming trend, reaching 9.78 billion billion yuan, an increase of 13.2 percent year-on-year. 2022Year reached118Billion yuan, year-on-year growth15%。ExpectedFrom 2023 to 2026, the scale of China's advertising market will maintain a stable growth rate, and will rise to 15.24 billion yuan in 2026, with a compound annual growth rate of 9.3.

2. Market demand

The market demand of the advertising machine industry mainly comes from the demand of all walks of life for digital marketing, intelligent management and consumption upgrading. With the development of digital economy, the change of consumers and the construction of smart city, the market demand of advertising machine industry presents the following characteristics:

Diversification of demand structure. Different industries, different fields, and different scenarios have different needs for advertising machines, and advertising machine companies need to provide more personalized, customized, and segmented products and services. For example, in the field of commercial retail, advertising machines need to be more interactive and experiential to enhance consumers' shopping desire and satisfaction; in the field of transportation, advertising machines need to have higher clarity and stability to improve the efficiency and safety of information transmission; in the field of education and medical treatment, advertising machines need to have more functions and intelligence to improve teaching quality and medical level.

The scale of demand is expanded. With the development of economy and society and the improvement of consumption level, the demand for advertising machines in all walks of life is increasing, especially in some emerging fields and new scenes, the application space of advertising machines is constantly expanding. For example, in the fields of new retail, new culture, and new tourism, advertising machines, as a new type of digital media carrier, can effectively attract consumers' attention and interest, and enhance brand image and marketing effects; in smart communities and smart In the fields of parks and smart government affairs, advertising machines, as an intelligent information release platform, can effectively provide public services and convenient services, and improve management efficiency and public satisfaction.

The quality of demand is improved. With the progress of technology and the change of users, the demand quality of advertising machines in all walks of life is constantly improving. It is necessary for advertising machine enterprises to constantly innovate technology and optimize products to meet the expectations of users for high definition, intelligence, interaction, multimedia and so on. For example, in terms of display technology, users have higher and higher requirements for the resolution, color and brightness of advertising machines, which requires advertising machine enterprises to adopt more advanced technologies such as liquid crystal display, LED display and OLED display. In terms of intelligent technology, users have higher and higher requirements for face recognition, voice recognition, gesture recognition and other functions of advertising machines, advertising companies need to adopt more powerful artificial intelligence algorithms, big data analysis, cloud computing and other technologies; in terms of interactive technology, users have higher and higher requirements for touch screens, scanning screens, projection screens and other forms of advertising machines. Advertising companies need to adopt more flexible interactive design, richer content production, and more diverse marketing methods.

3. advertising machine industry competition pattern

1. Enterprise competition pattern

The competition in the advertising machine industry is fierce and there are a large number of enterprises. According to the data of Shangpu Consulting Group, as of June 2023, there are more than 73000 enterprises involved in the advertising machine industry in China, including 5000 newly established enterprises in 2022 and 2000 newly established enterprises in the first half of 2023 (estimated value). In terms of the distribution of enterprises, they are mainly concentrated in the Pearl River Delta, the Yangtze River Delta and the Beijing-Tianjin-Hebei region, of which there are 18000 in Guangdong Province, accounting for 24.7 per cent, 9000 in Zhejiang Province, accounting for 12.3 per cent, and 8000 in Beijing, accounting for 10.9 per cent.

From the perspective of enterprise scale, there are a number of leading enterprises with strong strength and brand influence in the industry, such as Shenzhen Huashi Technology Co., Ltd., Shanghai Yiping Technology Co., Ltd. According to data from Shangpu Consulting Group, in 2022, Shenzhen Huashi Technology Co., Ltd. specializes in the research and development, production and sales of CCD/CMOS cameras and vehicle-mounted products in the field of security monitoring, achieving operating income of about 0.75 billion yuan, a year-on-year increase of 15.4%, net profit of about 0.14 billion yuan, a year-on-year increase of 16.7%; Shanghai Yiping Technology Co., Ltd. is engaged in the wholesale business of power equipment and electronic products, the operating income was about 0.56 billion yuan, up 14.3 percent year-on-year, and the net profit was about 0.09 billion yuan, up 12.5 percent year-on-year. In addition, there are some small and medium-sized enterprises with certain competitive advantages and market share in their respective segments and regional markets, such as Shenzhen Xinwangshi Technology Co., Ltd., Beijing Zhongshi Jinqiao Culture Media Co., Ltd.

2. Product competition pattern

From the perspective of product types, advertising machines are mainly divided into wall-mounted advertising machines, vertical advertising machines, touch advertising machines, projection advertising machines and other types.China Digital Signage (DS) In the product structure, wall-mounted advertising machines account for the highest proportion, 43%, followed by vertical advertising machines, accounting for 34%, touch advertising machines and projection advertising machines account for 13% and 10% respectively. It is expected that in the next few years, wall-mounted advertising machines and vertical advertising machines will still maintain a high market share, but touch advertising machines and projection advertising machines will gradually increase their market share, especially in some emerging scenarios. Strong competitiveness.

From the perspective of product functions, advertising machines are mainly divided into single-screen advertising machines, network remote control advertising machines, 3D stereoscopic display advertising machines and other forms. In China's digital signage (DS) product structure, single-screen advertising machines account for the highest proportion, 48%, followed by network remote control advertising machines, accounting for 36%, and 3D stereoscopic display advertising machines account for 16%. It is expected that in the next few years, the market share of single-screen advertising machines will gradually decline, while the market share of network remote control advertising machines and 3D stereoscopic display advertising machines will gradually increase, especially in some high-end scenes. Competitiveness.

Development trend of 4. advertising machine industry

1. Technological innovation

Technological innovation is an important driving force for the development of the advertising machine industry. With the continuous progress of liquid crystal display technology, LED display technology, OLED display technology and other display technologies, the display effect of the advertising machine will be clearer, brighter and more realistic. With the continuous development of artificial intelligence algorithms, big data analysis, cloud computing and other intelligent technologies, the intelligent functions of advertising machines will be more powerful, flexible and accurate. With the continuous innovation of interactive technologies such as touch screens, scanning screens, and projection screens, the interactive forms of advertising machines will be more diverse, interesting and effective. Technological innovation will continuously improve the product quality and service value of advertising machines to meet the diversified needs of users.

2. Product upgrade

Product upgrading is an important direction for the development of the advertising machine industry. As users' expectations for high-definition, intelligence, interaction, and multimedia continue to increase, advertising machine companies need to continuously optimize product design and functions to provide more personalized, customized, and segmented Products and services. Product upgrades are mainly manifested in the following aspects:

Ultra HD: Ultra HD refers to a display device with a resolution of 3840 × 2160 pixels or more. Compared with traditional high-definition display devices, ultra-high-definition display devices have higher picture quality and more delicate details, which can bring users Better visual enjoyment. With the maturity and popularization of ultra-high-definition display technology, ultra-high-definition advertising machines will become one of the mainstream products in the future market.

Intelligence: Intelligence refers to the use of artificial intelligence algorithms, big data analysis, cloud computing and other technologies to enable advertising machines to have functions such as independent learning, automatic adjustment, and adaptive feedback, and can provide more accurate and personalized according to the characteristics and behavior of users. Advertising content and services. Intelligent advertising machine will become one of the core competitiveness of the future market.

Interactive: interactive refers to the use of touch screen, scan code screen, projection screen and other technologies, so that the advertising machine has the ability to communicate and interact with users in two ways, which can enhance the user's sense of participation and experience, and enhance the communication effect and marketing effect of advertising. Interactive advertising machine will become one of the innovation points of the future market.

Multimedia: multimedia refers to the use of audio, video, images, text and other media forms, so that the advertising machine has a richer and more diverse content expression, to meet the diverse needs and preferences of users, and to enhance the attractiveness of advertising And influence. Multimedia advertising machine will become one of the development trends of the future market.

3. Service expansion

Service expansion is an important way for the development of the advertising machine industry. As the user's demand for advertising machines is not limited to the product itself, but pays more attention to the added value and service experience that the product can bring, advertising machine companies need to continuously expand the scope of services And depth, to provide more comprehensive and professional services. Service expansion is mainly manifested in the following aspects:

Content production: Content production refers to providing suitable advertising content for advertising machines according to the needs and goals of users, including text, images, audio, video and other forms. Content production is one of the important factors affecting the effect of advertising machine, advertising machine enterprises need to have strong creative ability and production ability, according to different industries, fields, scenes and user characteristics, to provide more exciting and targeted content.

Data analysis: Data analysis refers to the use of big data technology to collect, process, analyze and apply the operating data of the advertising machine, so as to optimize the operational efficiency and marketing effect of the advertising machine. Data analysis is one of the important means to improve the intelligent level of advertising machine, which requires advertising machine enterprises to have strong data ability and analysis ability, and can provide more accurate and valuable data insight and decision support according to different data sources, types and objectives.

Marketing effect evaluation: Marketing effect evaluation refers to the use of various methods and indicators to quantify and evaluate the marketing effect of advertising machines, so as to provide users with more objective and credible feedback information. Marketing effect evaluation is one of the important ways to improve the service quality of advertising machine, which requires advertising machine enterprises to have strong evaluation ability and communication ability, and can provide more comprehensive and effective evaluation reports and improvement suggestions according to different marketing objectives, strategies and channels.

5. advertising machine industry development opportunities

1. Development of the digital economy

Digital economy refers to the economic form based on digital technology, digital resources as elements, digital innovation as the driving force, digital ecology as the carrier, and digital value as the goal. The digital economy is an important engine and new driving force for the current economic and social development. According to data from Shangpu Consulting Group, in 2022, China's total digital economy will reach 50.2 trillion billion yuan, ranking second in the world, accounting for 41.5 percent of GDP, an increase of 11.3 percent over the previous year. It is expected that in the next few years, the scale of China's digital economy will continue to maintain a relatively high growth rate.

The development of digital economy has brought huge market space and development potential for the advertising industry. On the one hand, the digital economy has promoted the growth of demand for digital marketing and smart management in all walks of life, and increased the market demand of the advertising machine industry; on the other hand, the digital economy has promoted display technology, intelligent technology, and interactive technology. Technological innovation and progress in other aspects have improved the product quality and service value of the advertising machine industry.

2. Demand for consumption upgrade

Consumption upgrading refers to the change of consumers' consumption demand and consumption mode with the development of economy and society and the improvement of people's living standards, from focusing on material consumption to focusing on service consumption, from focusing on quantity consumption to focusing on quality consumption, from focusing on functional consumption to focusing on experience consumption. Consumption upgrading is an important feature and new trend of current economic and social development.

The demand for consumer upgrades has brought new market opportunities and development directions to the advertising machine industry. On the one hand, consumption upgrading has promoted the demand of all walks of life for brand image and marketing effect, and increased the market demand quality of advertising machine industry; on the other hand, consumption upgrading has promoted the service expansion of advertising machine industry for product personalization, customization and segmentation, and improved the service level and user satisfaction of advertising machine industry.

3. The construction of smart city

Smart city refers to the use of information technology, Internet technology, Internet of things technology and other modern scientific and technological means to effectively integrate and optimize the allocation of urban resources, realize the intelligence, informatization and digitization of urban management, public services, social governance and other aspects, and improve the sustainable development ability of the city and the happiness of citizens. Smart city is an important goal and new model of current economic and social development.

The construction of smart cities has brought new market areas and development space for the advertising machine industry. On the one hand, smart cities have promoted the increase in demand for information release and public services in various public places, and increased the market demand of the advertising machine industry; on the other hand, smart cities have promoted the intelligent and interactive products of the advertising machine industry. Technological innovation in the aspects of chemistry and multimedia has improved the product functions and service effects of the advertising machine industry.

6. advertising machine industry development challenges

1. Product homogeneity serious

Product homogenization means that the products produced by different enterprises have no obvious differences in function, performance, quality, etc., which makes it difficult for users to distinguish and choose. Product homogeneity is a common problem in the development of advertising machine industry. Due to the fierce competition in the advertising industry, the large number of companies, and the relatively low product technology threshold, many companies produce products that lack innovation and differentiation, and it is difficult to form their own core competitiveness and brand advantages. The serious homogenization of products not only affects the profit space and development prospects of enterprises, but also affects the user's choice satisfaction and use experience.

2. Profit space compression

Profit margin compression refers to the decline in the profit margin obtained by enterprises due to factors such as intensified market competition and rising costs, which affects the operating efficiency of enterprises. Profit space compression is a practical problem in the development of advertising machine industry. Due to the fierce competition in the advertising industry, the large number of enterprises, and the serious homogenization of products, many enterprises have to reduce product prices and service costs in order to seize market share and customer resources, thus compressing their own profit margins. At the same time, due to the technological innovation and product upgrading of the advertising machine industry, large R & D investment and operating costs are required, which leads to the increase of cost pressure of enterprises and also affects the profit space of enterprises. Profit space compression not only affects the development momentum and innovation ability of enterprises, but also affects the healthy development and sustainable development of the industry.

3. Unclear regulatory policy

Regulatory policy refers to the laws, regulations and management measures formulated and implemented by the state or local government on enterprises and products in the industry in order to regulate market order, protect public interests, and promote industry development. Regulatory policy is an important factor affecting the development of the advertising machine industry. As the advertising machine industry involves advertising law, consumer protection law, network security law and other laws and regulations, and with the progress of technology and market changes, it is necessary to constantly improve and update the relevant regulatory policies. At present, the advertising machine industry still lacks a clear and unified regulatory policy in some aspects, resulting in some irregular and illegal phenomena in the industry, such as false advertising, invasion of privacy, and damage to the public interest. These phenomena not only affect the reputation and image of the advertising machine industry, but also affect the rights and interests of users and social stability.

7. Champ Consulting Recommendations

According to the above analysis, Shangpu Consulting believes that the advertising machine industry is an industry with great development potential and market space, but it also faces some challenges and risks. In order to seize the development opportunities and meet the development challenges, Shangpu Consulting recommends that companies in the advertising machine industry take the following measures:

Strengthen technological innovation and improve product quality. Technological innovation is an important means to improve the product quality and service value of advertising machines. Advertising machine enterprises should increase investment in research and development, introduce advanced technology, develop more high-definition, more intelligent, more interactive and more media products, and meet the diversified needs of users.

Expand the scope of services and improve service levels. Service expansion is an important way to improve user satisfaction and loyalty of advertising machines. Advertising machine companies should expand the scope and depth of services and provide more comprehensive and professional services, such as content production, data analysis, marketing effect evaluation, etc., to enhance user experience.

Seek differentiated development and enhance core competitiveness. Differentiated development is an important strategy to get rid of product homogenization and profit space compression. Advertising companies should seek differentiated development and provide more personalized, customized and differentiated products according to different industries, fields, scenarios and user characteristics. And services to form its own core competitiveness and brand advantages.

Pay attention to regulatory policy changes and comply with industry norms. Regulatory policy is an important factor affecting the development of the advertising machine industry. Advertising machine companies should pay attention to changes in regulatory policies, comply with industry norms, avoid irregularities and illegal phenomena, maintain the reputation and image of the industry, and protect the rights and interests of users and social stability.