Does Digital Signage Actually Work?

Posted by on Dec 31, 2016 in Insight

It’s no surprise that it’s getting harder and harder for businesses and marketers to get their content seen. This is one reason why business owners and managers see the value in digital signage. Digital signage is a powerful visual communication tool and medium that attracts audiences, increases efficiency, reduces marketing costs and even increases customer engagement and retention rates.

Business owners and marketers all know the benefits of digital signage by now. In fact, the increase in adoption rates and successful case studies prove that digital signage is not only popular but highly effective.

But how do businesses and marketers know digital signage actually works? Read on to learn some surprising statistics about the effects of digital signage.

  1. Improve communication with in-store signage. Businesses and retailers that utilize in-store signage believe that it is like having a digital salesperson right at their doors. A digital signage kiosk has the power to communicate messages to customers, influence their purchase decisions, and enhances the customer experience, all of which lead to higher engagement levels.So what do customers really think? In fact, 68 percent of customers believe that digital signage is a reflection of the quality of a product or service, as well as the quality of the business as a whole. Also, 1 in 5 customers made an unplanned purchase after seeing a digital ad.
  2. Increase sales. Although some digital signage equipment can be an investment for some businesses, statistics show that businesses that implement digital signage and use it effectively show an increase in sales. In fact, 4 out of 5 brands claim to see a 33 percent increase in sales as a direct result from using digital signage. Furthermore, businesses that use only one digital sign see a 4.75 percent increase in annual sales. Imagine how much businesses could increase sales with more than one sign…
  3. Influence purchasers. As mentioned briefly in the points above, digital signage has the power to influence customers in their purchase decisions. Digital ads and signage stand out from the traditional black and white signs, banners, and other posters.Businesses today are also integrating video into their digital signage, which has proven to boost the customer experience, sales, and influence purchase decisions. In fact, 68 percent of American consumers made a purchase due to a digital sign, and has even proven to double the information retention rate in the average consumer.
  4. Increase word-of-mouth advertising. Because digital signage has proven to increase consumer retention rates, consumers can recall information about a product, service or brand to someone they know, either via social media or word-of-mouth.In our digital era, the more aesthetically pleasing and technically-enhanced the digital ad, the more likely it is to attract and appeal to customers, and the more likely they will share this information with someone they know. In fact, 75 percent of Americans have told someone they know about a product, service or brand from a digital ad they have seen in a store or in another public location.
  5. Expand a brand’s big picture. For larger brands, enterprises, and franchises that have multiple locations, digital signage has proven to help with brand consistency. Digital signage has also proven to be an effective way to communicate brand messaging and to promote offers and other promotions in multiple locations. In fact, 38 percent of large companies with multiple locations claimed that branding is key in effective digital signage.

All in all, the facts are clear. Digital signage is an effective way to communicate a brand’s message, influence consumer purchase decisions, promote offers and increase sales. And as 2017 unfolds, brands will likely see a larger push and demand for digital ads, content, and signage, and a larger return on marketing investment.

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