Right here at The Drone Lady, we discuss so much about investing in drone firms. However how are drone firms themselves investing the funds they’ve? German-based analytics agency Drone Business Insights sought to learn how drone firms will prioritize how they spend cash in 2024 — and the reply actually isn’t {hardware} or software program improvement.
‘Advertising and marketing and gross sales’ is the main precedence amidst drone firms for the subsequent 12 months, not less than based on DII’s 2023 World Drone Business Survey. That survey was created based mostly on on-line survey responses from 1,113 drone business members throughout 85 international locations, and was launched in August 2023 by DII.
As a part of the survey, DII requested respondents to state their priorities concerning useful resource allocation, with six doable choices: advertising & gross sales, funds & funding, employees improvement, {hardware} improvement, software program improvement, and different (e.g. worldwide growth, enhancing drone operations, fostering enterprise improvement). Observe that respondents might choose a number of solutions.
Finally, 31% of respondents chosen advertising & gross sales. In the meantime, solely 17% chosen software program improvement, and 13% chosen {hardware} improvement as areas the place they are going to primarily spend cash in 2024
Right here’s a breakdown of spending areas that drone firms are prioritizing this 12 months, so as from most to least:
- Advertising and marketing & gross sales: 31% (down from 33% in 2022)
- Workers improvement: 18% (down from 19% in 2022)
- Software program improvement: 17% (up from 16% in 2022)
- Funds and funding: 15% (unchanged since 2022)
- {Hardware} improvement: 13% (up from 12% in 2022)
- Different: 6% (up from 5% in 2022)
In keeping with DII, that curiosity in prioritizing funds towards advertising has in actual fact tripled since 2018. In a comparable survey performed by DII final 12 months, the outcomes have been additionally comparatively comparable, with 33% of firms prioritizing market & gross sales spending, simply 16% prioritizing software program improvement, and 12% chosen {hardware} improvement — all figures inside one or two proportion factors.
Why are firms spending cash on advertising in 2024?
So why are so many drone firms prioritizing spending cash on advertising in 2024? One in all DII’s theories is just because the drone business has matured sufficient to the purpose the place now they merely have to promote and promote their services and products reasonably than develop extra of them.
And for what it’s price, there isn’t a scarcity of subtle {hardware} and software program already current out there. That features every thing from highly effective mapping software program to spectacular follow-me drones. Previously digital camera drones have developed into sturdy, industrial powerhouses, such because the Sony Airpeak S1, which was constructed by Sony initially to hold its Alpha collection of cameras. In that instance, in April 2023 Sony launched some important updates to its drone that included including an RTK GNSS system for centimeter-level accuracy.
And whereas DJI nonetheless dominates, there are many different up-and-coming rivals, notably in terms of American drone firms throughout the business house. With all these firms comes the necessity for each to distinguish their distinctive promoting factors — which is primarily completed by way of communications and advertising.
Apparently, the quantity two spending space for drone firms is employees improvement. It’s not sufficient to be a great drone pilot with a Half 107 certificates nowadays. Because the panorama grows aggressive, firms need to rent consultants in areas like precision mapping, modeling and photogrammetry — in addition to people who won’t even get near drones day-to-day however are professionals in different facets of enterprise.
However to circle again to that concept that little or no emphasis is being positioned on {hardware} and software program currently, it’s a compelling level. In keeping with DII’s report, emphasis on product improvement has been slashed in half since 2018. 4 years in the past, {hardware} and software program have been the important thing spending areas for a plurality of drone firms, with advertising solely taking 11% of the important thing focus.
Right here’s a take a look at how all these spending areas have modified over the previous six years, based mostly on DII’s gathering of data of that survey query yearly of its report:
Obtain extra insights from the 2023 Drone Business Barometer by studying the complete report right here, accessible free for obtain.