Challenges, Opportunities, and Growth: The Promising Future of Digital Signage in South Africa

Driven by the growing demand for dynamic, interactive, and targeted marketing solutions, and fueled by advancements in technology, digital signage has over the years evolved as a powerful advertising and communication tool in many regions, including South Africa.

According to Kevin Bierman, Head of Digital Signage Solutions at Moving Tactics, South Africa’s leading digital signage solutions company, the digital signage industry is currently thriving in South Africa with the uptake of digital signage technology surpassing that of most European countries. While Europe leans more towards the use of LED or large format displays, which Bierman observed during a recent trip to Europe, smaller in-store screens are much more prevalent in South Africa. “This can be attributed to both the different dynamics in which South Africans shop and the way that cities are built in South Africa, which changes the way in which we operate. In Europe, they have high streets, while here in South Africa, we have more shopping centers and strip malls, which lends itself to having more screens out there. More stores equal more screens.

“Looking ahead, the future of digital signage in South Africa looks very promising. The overall geographic landscape of the country puts us in a unique space. With long distances between locations, traditional methods like printing and distributing promotional material can be expensive. Additionally, static print signage requires that promotional content be physically changed each time, which is costly and time-consuming. Moreover, with fuel and commodity pricing on the rise, the need for more efficient and cost-effective advertising solutions becomes increasingly evident,” explains Bierman.

He believes that cost is a significant factor – as an initial expense and a long-term saving – in South Africa. “While implementing digital signage solutions may require a significant initial investment, the long-term cost benefits outweigh the upfront expense, thus making digital signage more cost-effective in the South African context. Additionally, there’s a challenge in adopting new technology, as operational needs may not always align with marketing objectives. However, these technological advancements present opportunities for evolution, particularly in the realm of retail analytics and data-driven digital signage, which I believe is the next logical step. If you’ve invested in attracting customers to specific products and services on your website and can measure the results, why not replicate this in your physical stores.

“With data-driven digital signage, bricks-and-mortar retailers can now measure, and tailor content based on in-store customer behaviour and interactions in real-time, much like online platforms personalise content based on browsing habits. This includes adapting content based on factors that influence buying trends such as special occasions and weather patterns. By leveraging strategies such as weather-based content and dayparting strategies, retailers and Quick-Service Restaurants (QSRs) can enhance the effectiveness of their marketing initiatives and ensure they’re selling the right products at the right time, ultimately driving sales and profitability,” says Bierman.

Over the past 25+ years, Moving Tactics has established itself as a leader in the Out of Home Industry with focus on digital signage whilst working alongside leading Quick-Service Restaurants (QSR) and retailers in South Africa. With a track record of success, they’ve installed over 100 networks and currently manage 15,000 live devices (media players or screens), reporting on them three times a day, seven days a week. “Our largest network comprises 6,500 screens, showcasing our extensive reach and capability. This translates to a large portion of our network being accounted for by a single client. While our main focus is primarily South Africa, due to our customers’ needs, especially those in the Quick-Service Restaurants (QSR) and retail industries, over the years we’ve expanded our presence into neighbouring African countries like Namibia, Botswana, Mozambique, Swaziland and further north into Zambia, Ivory Coast, the DRC, as well as into the Middle East, including UAE and Oman. Looking ahead, we anticipate future growth in the European market, although it’s still early days at this stage,” adds Bierman.

Moving Tactics has also been at the forefront of innovation in the digital signage industry, pioneering several technological advancements over the years, including the implementation of System-on-Chip (SOC) technology. “Whilst SOC technology is just beginning to gain traction in Europe, this innovation, which we introduced close to six years ago, has now become the norm for our customers, providing substantial savings and operational efficiencies.

“As digital signage providers in South Africa, we’ve had to be very innovative, not only in terms of technology but also in how people pay for things. By making solutions more cost-effective, such as SOC where you don’t need to pay for the media player, we’ve been able to save clients significant expenses in equipment and maintenance costs. This model has proven to be highly successful for us over the years. Additionally, we’ve been proactive in developing data analytics capabilities around digital screens, culminating in the integration of Sensmi, an in-store data analytics platform, into our retail analytics solutions. Moving forward, our focus remains on data-driven digital signage, leveraging insights to enhance the effectiveness of our solutions and drive continued innovation within the company,” concludes Kevin.

To learn more about our digital signage and retail analytics solutions, visit: https://movingtactics.co.za/.

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