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Advertising machine shipments fell 48.5% year-on-year in the first half of the year, government orders grew against the trend

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Affected by the epidemic, the overall scale of advertising machines in the first half of 2020 decreased by 48.5% year on year, including 288.6 thousand indoor advertising machines shipped, down by 49.0% year on year, and 4.6 thousand outdoor advertising machines shipped, down by 14.8% year on year.

Source: AVC Revo

On a quarterly basis, the first quarter was severely affected by the epidemic. The upstream and downstream enterprises of the industrial chain delayed the resumption of work, and the procurement demand of downstream customers was delayed. The overall market dropped by 60% year-on-year.The market picked up in the second quarter, but the project orders decreased year on year, and the industry demand did not fully recover.The overall market increased by 54.9 % month-on-month and decreased by 37.4% cent year-on-year.

By industry, advertising machine in the first half of 2020 is dominated by media industry shipments.

Affected by the macroeconomic downturn, elevator media company competition slowdown, etc., advertising machine from the media industry orders decreased year by year, the epidemic further inhibited the expansion speed of 2020 media companies. Take elevator media leader Focus, for example, according to Focus semi-annual report, since the second half of 2019 Focus began to work on optimizing and combing media resource points. As of the end of July 2020, the number of lift TV media resources in first/ second/ third-tier and below cities was 182/ 354/ 78,000 units, respectively, a change of -5.7%/ -7.6%/ -15.2% from the end of 2019, indicating that media companies have reduced the scale of equipment purchases to save costs, so the media industry as a whole decreased by 13.9% in the first half of the year; the performance of the government industry Prominent, the epidemic period, the epidemic resistance propaganda, intelligent government, intelligent agriculture applications increased, shipments reached 57,000 units, an increase of 43.6% over last year, market share increased by 12.6%; chain restaurant retail digitalization is steadily advancing year by year, but the epidemic dragged, shipments fell 35.1% year-on-year.

Source: AVC Revo

By size, in the first half of the year, advertising machine size changed from the previous trend of “small and large”, and the size segment concentrated to the middle size segment.

Among them, the size segment below 30 was significantly reduced, due to the impact of the epidemic on the media industry, the demand for this size segment was greatly reduced.At the same time, the digital upgrade of retail, government and financial industry will increase the market share of 30-49 segments and drive the sales of interactive products of some 30-59 segments.

Source: AVC Revo

At present, the epidemic situation in China has basically stabilized, and all scenarios have been fully liberalized. We believe that the proportion of advertising in the second half of the year will return to the level of the same period last year, and the delayed demand caused by the epidemic will be released.But put the whole year, the losses caused by the epidemic for the peak season of advertising machines will still inhibit the annual shipments, and the year-on-year market growth rate will be negative. We make predictions in three scenarios: market size growth rate under optimistic expectation is -3.8%; market size growth rate under neutral expectation is -14.3%; market size growth rate under pessimistic expectation is -19.0%.

Source: AVC Revo

This year’s epidemic has brought a great impact on the advertising machine market, the decrease in the demand end, the project promotion plan was delayed in the first half of the year, the upstream raw material price and other consequent problems compressed the advertising machine profit space, making the market competition more fierce.Risks often contain opportunities, and the epidemic also brings business opportunities to the advertising machine industry:

Source: AVC Revo

According to CTR research data, during the epidemic, elevator LCD advertising spending has achieved a continuous positive growth, advertisers on the elevator LCD advertising expectations have not decreased.Elevator media, as an important part of the living area media, undertake the online broadcast outlets and play an irreplaceable role in the offline short video marketing. In the future, the overall market growth rate will still be higher than that of traditional media and Internet media.With the development of new infrastructure 5G, Internet of Things and AI technology, as well as the steady growth of advertisers’ budgets for outdoor digital advertising, the digital development of outdoor advertising is upgrading to online, data-oriented and intelligent.In the future, elevator media equipment will be upgraded in the forms of advertising information display and user interaction, so as to create a more accurate and efficient advertising platform, realize the “front of a thousand elevators” for elevator advertising, and provide advertisers and users with more efficient marketing interaction.The technological innovation of the industry may further promote the evolution of the industry pattern, and the suppliers with profound technological strength accumulation may occupy the active position of market competition.

Source: AVC Revo

Demand for Contactless bar-code payment equipment is booming

“Contactless” is one of the best prevention and control measures during the epidemic.

During the epidemic, large supermarkets formed a substitution effect on small offline stores, the number of customers soared. “Contactless payment” and “self-service checkout” equipment could effectively relieve the pressure of supermarket queues and reduce personnel gathering.

The epidemic has accelerated the shift of scenes from offline consumption to online payment. Online online payment has benefited from the epidemic, while offline barcode payment, aggregate payment and facial brush payment have suffered setbacks, and the demand for “Contactless payment” has surged.In offline payment,  accelerate the role of digital payments to replace cash, especially good for devices with barcode payment.

Smart charging pile advertising machine is expected to usher in a period of rapid development

By the end of June 2020, 1.322 million charging piles had been built in China, and the number of new energy vehicles in the same period reached 4.75 million, with a ratio of pile to 3.6:1. There is still a significant gap compared with the 1:1 ratio planned in the Guide for the Development of Electric Vehicle Charging Infrastructure (2015-2020). The construction speed of charging piles is far behind the incremental speed of new energy vehicles.

Public new energy charging pile is an important link in the construction of new national infrastructure. With the development of “new infrastructure” and the improvement of the demand for new energy vehicles, charging advertising machine will usher in a new wave of development.According to the existing survey data statistics, we predict that charging pile advertising machine in the next four years will usher in the new demand of nearly 55,000 units.

Source: AVC Revo

The epidemic has also accelerated the digital transformation of finance, government and catering retail. Combined with the development opportunities of new infrastructure construction in the next five years, intelligent advertising machines will accelerate their penetration into all walks of life. Despite severe setbacks in the first half of the year, the future opportunities will far outweigh the risks.

Jenny Zhang

Jenny Zhang

Hello, I'm Jenny Zhang, the author of this article. I've been doing overseas marketing for almost 10 years. In the constant communication and cooperation with customers all over the world, I find that there are almost no high-quality English resources about digital signage suppliers in China as well as the industry and products on the Internet. Knowing the painful struggle that sellers have to go through in purchasing, I created this blog page and wrote this article to share what I know with you.

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