• by David Goetzl , March 9, 2009

As some out-of-home companies look to digital signage as a growth opportunity, research shows the business will grow at a 33% clip in the United States this year.

The figure from ABI Research covers infrastructure aspects from hardware to maintenance; it does not cover the advertising wild card.

The projected revenue increase comes despite the troubled financial conditions. Even as the rollout of the signs ramps up, media companies still face the challenge of filling the space.

Analyst Zippy Aima said that "digital signage has emerged as a way to deliver highly customized and targeted messaging. In a fast-changing world, digital signs' ability to be updated in real time is a real benefit."

Factors that are propelling increased installation of digital-sign displays include the falling prices of electronic products and data-storage systems. ABI said that cutting-edge technology that includes interactivity "can offer a more compelling experience to users and provide valuable consumer feedback to marketers."

Still, ABI sees a negative: Multiple companies selling the displays "make it difficult for customers to identify the solutions and technologies they want to implement." And, the firm added, data security hurdles continue to be a concern.

Aima said: "Although digital signage technology promises increases in sales and revenue, such growth is not immediate. The investment in installing a network can still be very high, depending on the number of sites and the cost of the other components. Yet, businesses with ready access to capital may see a real opportunity here."