24.4.2015 / Päivi Rucidlo

Let's talk about Digital Signage profitability

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More than often the arguments of salesmen sound a bit too good to be true. “Digital Signage improves the communication of corporations”. “Produces more income and saves some euros in the process”. “Improves image and fortifies the brand.” Still, when it comes to digital signage these arguments aren’t just pretty words. Let's hear some facts that explain why most organizations today decide to take digital signage as a part of their marketing strategy.

Sales argument 1: DIGITAL SCREENS HAVE GREAT ATTENTION VALUE

S group retail chain research about profitability:  Catching the attention with screens

S group, a retail and service network with over 1600 outlets, carried out a research in 2013 about the attention value of digital screens. The research was done in co-operation with FirstView and TeknoVision.

TeknoVision movement cameras that measure dwell time were installed above a product shelf of Prisma Itäharju (supermarket) for two weeks. A 42-inch horizontal digital signage screen was installed in to the shelf end right next to the product. Underneath the screen were barbeque grills on display. During the first week there wasn’t any material playing on the screen. During the second week a picture and a price of the grill was displayed on the screen. The price was the same both weeks and it was the product’s normal price (not a special offer).

The dwell time of customers passing by the shelf (product) was measured with cameras. Here's what the activity towards the product looked like without the advertisement on screen and with the ad screen:

The purple line indicates the results of the first week. Green line indicates the results of the second week when the digital signage screen was in use.

Naturally the final decision of purchase is affected with several matters, from the price of the product to the appearance, features, and even packaging. A new barbeque grill isn’t on the shopping list of every customer. As the research show at best 5, 5 % of all customers were even the slightest bit interested in grills at all.

Nevertheless the interest towards the product clearly increased by advertising it on digital signage screen and that is what we wanted to know.

Research institute Nielsen: The effect of digital signage to buying behavior

During 2013 research institute Nielsen found out the following results with “Nielsen Fourth Screen Network Audience report” while they were doing a research about digital screen systems that are placed in one location that update through network in shopping centers.

- 82 % of shopping mall visitors noticed the digital screens

- 34.6 % of visitors remembered the advertisements shown on screens afterwards

- 59.2 % thought that the content of the screens was interesting or they told that it had affected their decision to buy positively.

The most impact to the customers had the campaign categories that were frequently playing o screens and that had already become familiar (such as TV commercials and seasonal campaigns). In this research there were 4 categories: “deal breakers” (offers that change weekly), “essentials” (seasonal, ‘must-have’-products), “trend alert” (the latest trend news about fashion and beauty), and “editorial content”(for example: style articles and celebrity interviews).

Sales argument 2: DIGITAL SCREENS INCREASE SALES

Effect of digital signage screens to brand image and sales in EDEKA markets

Research institute Nielsen and approximately 220 EDEKA markets around Germany carried out a research that investigated the effect of digital screens to the sales and sales environment. For several weeks in-store digital signage screens displayed advertisements about daily consumer goods and toiletries. In addition to the inspection of sales numbers, over 1400 consumers answered to an inquiry about brand images. Here are the most interesting results of the altogether large research:

- 4 out of 5 product brands increased their sales by 33 % during the screen advertisement period

- 74 % of customers paid attention to digital POS-screens (point-of-sale)

- 31 % of customers remembered the brand or complete advertisement even after the visit

- 62 % of customers found the combination of advertisement and informing positive

Walmart SMART screen system affect on sales

In 2011 retail chain Walmart inspected the impressiveness of their SMART system for 18 month test period. Sales data was compared to the information that the screen system provided on what advertisements were shown in each screen and for how long.

Here are the increases of sales by SECTIONS (change on sales numbers compared to time before using digital signage screens)

- Electronics +7%
- Daily consumer goods +23%
- Groceries + 13%
- Health/beauty + 28%

Growth of sales by each PRODUCT CATEGORY

- Mature item boost +7%
- Item launch +9%
- Seasonal push – 18%
- Price leadership (Items on rollback) – 6%

Food for thought in the form of graphs:

Images: Arbitron
More studies of digital signage benefits you'll find for example HERE.

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