SDEK entered the Digital Signage market

2022: Equipping Order Points with Monitors to Display Content

On November 7, 2022, the company SDEK announced that it had become an operator Digital Signage at its points of issue of orders. Establishing a division of CDEK Media and equipping its ordering points across all to the country monitors to display - content both commercial and non-commercial - part of the company's global business diversification strategy.

According to the company, SDEK became interested in the advertising market on digital media in the context of its growth potential. According to the Association of Communication Agencies of Russia (AKAR), the outdoor advertising market in Russia in 2021 grew by 43% year-on-year, showing the largest increase among all advertising segments, and exceeded the level of pre-crisis 2019, although not much (by 1% year-on-year). Moreover, advertising on digital media, which is part of the outdoor advertising segment, has increased the volume of attracted advertising budgets by almost one and a half times compared to 2019 (+ 45%). According to Statista estimates, the digital outdoor Signage market will grow at an average of 5% per year in the next five years.

The company has equipped 93% of its PVZs with electronic monitors that broadcast over 200 hours of advertiser content daily for hundreds of consumers in Moscow and St. Petersburg, million-plus cities and small towns. As of November 2022, digital screens have already been installed at almost 3,000 points of issue (as of November 2022, SDEK has over 3,500 of them in Russia), and by the end of the year they will appear at 99% of points, a representative of the logistics operator said.

Content is viewed daily by tens and hundreds of people, depending on the size of the settlement where the PVZ is located. In small cities, PVZs are visited by an average of 50 people a day, in million-plus cities - 100-150 people each, in Moscow and St. Petersburg - 200-250 people each. In September 2022, over 10 million PVZ visitors saw videos on SDEK monitors with an average cross-country capacity of 100-150 people per day.

In January-September 2022, the number of visitors to PVZ in the country as a whole increased by about 5% year-on-year, a more significant increase is expected in November-December, during the New Year sales. At the end of 2022, SDEK expects an increase in visitors to PVZ both by 2020 and 2021, when Russia was experiencing a pandemic, and by pre-pandemic 2019. By the end of the year, the company expects to equip the entire PVZ network with electronic monitors, says Igor Ryazanov, head of the SDEK Media product.

Nine out of ten visitors to PVZ are buyers Internet of shops. Most often, visitors to PVZ order goods from shops for home and summer cottages (they account for 15% of the total delivery volume), auto accessories (12%), clothes and shoes (7%) and food (7%), as well as financial organizations (4%), printing companies (4%), stores in the segment "cosmetology and beauty" (3%) and stores (3 building materials %), as well as computer hardware and gadget stores (2%).

Content on SDEK monitors is displayed up to 200 times a day - every three minutes. Advertising companies are already placed by organizations - from participants in the banking industry (Tinkoff Kassa Internet acquiring service, Bank of Russia Fast Payments System) and mobile operators (Tele2) to charitable organizations to which SDEK Media provides a platform within the framework of the partnership. Also, about 20% of advertisers are hyperlocal advertising, which is effective for small and medium-sized businesses (services and goods of which are located near the points of issue).

In particular, SDEK Media cooperates with the LizaAlert search and rescue squad. On the screens in PVZ, orientations for missing people are placed. Given that each visitor will see information about the missing several times during the visit, the chances of a successful search outcome are potentially increased.

In the next two years, SDEK plans to increase the share of PVZ in delivery to 80%.

SDEK also plans to continue to involve large advertisers, since for them the operator can target the audience and show ads only at those points of issue where their client comes (an online clothing store where apparel is most dispensed, pharmacy chains and manufacturers of non-prescription drugs - where pharmaceuticals are most dispensed, beauty - where women customers and goods from this area are most dispensed, and so on.

SDEK Media is developing both an advertising platform for end advertisers and advertising agencies. For both small and medium-sized and large business, for city and regional administrations.

Entering the indoor advertising market is "part of the company's global business diversification strategy," explains a representative of SDEK. The logistics operator, as he clarifies, is building a trading ecosystem: it already includes, for example, the online payment service SDEK Pay, the marketplace for the delivery of Western goods CDEK.Shopping, an analytical and marketing agency for sellers of marketplaces SDEK.Shipim.

In July - September 2022, SDEK Media's revenue amounted to about 80 million rubles. It is planned that by 2025 it will amount to 7% of the total revenue of SDEK, says Ryazanov. Revenue under RAS of the Russian head legal entity of the operator SDEK-Global LLC, according to SPARK-Interfax, amounted to 21.7 billion rubles. in 2021, and the total revenue of the group, according to its own data, is more than 39 billion rubles.