Digital Frame Market Index down 43% in January
Last month we introduced the Digital Frame Market Index (DFMI). Wikipedia defines index (as it relates to economics or finance) as a single number calculated from an array of prices or of quantities. We are most familiar with the Consumer Prices Index (CPI) or the Gross Domestic Product (GDP). Values of an index in successive periods summarize level of the activity over time or across economic units. As a refresher, the objective of the DFMI will be to summarize the level of activity associated with the emergence of the digital frame market by looking at buyers and sellers.
The digital frame market continues to be seasonally driven with the vast majority of purchases occurring in December (and a slight blip around mother’s day). Thus it is no surprise that the index dropped dramatically (43%) from December’s report. We anticipate small monthly increases through the second quarter of this year with moderate gains in the third quarter as the consumer press starts to write about the new wireless frame entries.
Searches on the terms “Digital Photo Frame” and “Digital Picture Frame” dropped by over 83% to just under 250,000 searches. There was a significant increase (71%) in the unique combination of online retailers and digital frame SKUs being promoted on CNET. This may be the result of new products launched at CES in January.
| Dec-06 | Jan-07 | |
| Searches | 1,500,000 | 248,000 |
| SKUs available from Best Buy | 6 | 6 |
| Retailer/SKU Combinations on CNET.com | 46 | 79 |
| Number of expected daily clicks on AdWords | 97.5 | 58.5 |
Details are available on the index components in last month’s Index Report.
The index is constructed by combining these individual component indices with a proprietary weighting scheme.
Sources
http://inventory.overture.com/d/searchinventory/suggestion/
