Is it a wishful thinking for LED screen companies to jump out of the ring into the outdoor media?

Walking on the streets, in addition to high-rise buildings, there are visual and audible advertising signs, LED display enters the city as a mobile and smooth advertising media, adding endless possibilities for fashion and cutting-edge urban life. .

In order to seize the huge market space of outdoor advertising, LED display companies not only strengthen the linkage with outdoor advertising media companies, but also set up their own media companies to directly participate in the outdoor advertising industry.

LED screen companies join hands with outdoor media, is it a love-fighting or a wishful thinking?

Outdoor media love LED display According to Baidu Encyclopedia interpretation, outdoor advertising (outdooradvertising) generally refers to advertising set outdoors. Common outdoor advertisements include: roadside billboards, high-column billboards, light boxes, neon billboards, LED billboards, etc. Now there are even advanced outdoor advertising forms such as air balloons and airships.

According to relevant data, the total amount of outdoor advertising in 2010 reached 45.2 billion yuan; in 2011, it reached 51.5 billion yuan; in 2012, the amount of outdoor advertising in China increased by 10%-15% compared with 2011. If calculated by 10%, China in 2012 The amount of outdoor advertising was 56.6 billion yuan.

The rapid growth of outdoor advertising is not only reflected in the continuous expansion of the industry in a short period of time, but also in the rapid occupation of emerging outdoor media formats. Among them, the LED display screen is quietly red-hot throughout the outdoor advertising industry with the undisputed latecomer.

The LED Display Application Branch of China Optical Optoelectronics Industry Association pointed out in the "2012 LED Display Application Annual Report" that "in the field of outdoor advertising media, the proportion of LED display application products is increasing. The first time to start the layout of LED display network Phoenix Media, the past three years The compound annual growth rate has reached more than 200%, and the proportion of new media business revenue including LED business has jumped from less than 10% to more than 40%. In 2012, Fenghuang Media, Tulip, Champs and other media companies The LED media network began to radiate to small and medium-sized cities, and some powerful advertising media companies began to build a larger network of LED display screens."

The main reason why LED is favored by outdoor advertising media companies is the product advantages of LED display itself. As the fourth generation of emerging media, LED display integrates modern high-tech with environmental protection, high-resolution imaging, natural and delicate colors, video and text display, and wide visuals. It fully meets the technical requirements of modern advertising media and the city. The viewing requirements of the crowd are the perfect combination of high technology and traditional media.

In addition, the continuous breakthrough of LED display technology has brought new changes to outdoor advertising. Such as outdoor high-density small-pitch LED display has improved from product performance to display effect, outdoor surface mount LED display is lighter and thinner than in-line type, and the picture is more delicate. In the future, the intelligent LED display will lead the audience from far-sighted to intuitive interaction, which will really bring the media closer to the audience. And various high-tech products, scanning QR code, LBS and other new marketing methods have also been better supported on the LED display.

LED screen enterprises turn into the media for jumping out of the circle

According to statistics, the total number of LED display application enterprises with a certain scale in China is about 500, and the total number of enterprises engaged in LED products of various types and sizes in the country is more than 1,000. With the increasing number of LED display related companies, various problems have come one after another.

The first is that competition is fierce and prices are falling, making it difficult for companies to survive. In the past, the LED display, which seems to be a symbol of status, is no longer a high-priced thing. Instead, it is the information and news that competes with price reductions. In order to compete with more emerging companies, many established companies have to abandon the original marketing experience and adjust the price of products in a timely manner to meet the needs of the market. The huge changes brought about by the price drop have caused some unsuitable enterprises to end their careers ahead of schedule.

Secondly, the product homogeneity is serious, and the industry's impetuous atmosphere is prominent. The product homogenization phenomenon is more obvious than the conventional display products. The opportunistic manufacturing companies do not pay attention to research and development, but simply copy and process other people's products. This kind of cottage behavior disturbs the competition order of the industry.

Once again, enterprises will not increase their production, and they will urgently seek new profit growth points. Judging from the financial statements of major listed companies and the voice of corporate response, most of the companies have been increasing production and not increasing revenue since 2012, and emerging industrial highlights will undoubtedly stimulate the desire of enterprises to find a broader market. space.

In this context, the development of outdoor advertising has provided hope for the LED display industry. As the outdoor media's favorite LED display, it is growing at a rate of more than 25% per year. Wu Xiaogang, general manager of Shenzhen Qipu Optoelectronics, said that the demand for outdoor media in 2013 was more obvious than in previous years. At the same time, the coverage of the three largest companies in the country, the Tulip Media and Phoenix Metropolis Media, and the coverage of Xiangli Media in the provincial capital city has not yet been completed. The outdoor large-scale LED advertising market is still in a stage of rapid expansion and has a large room for growth.

(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)

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