Digital signage has become commonplace, filling our line of sight with digital out-of-home (DOOH) advertising at the gas pump, in the mall, in corporation lobbies and at an independent retailer near you. Although commonplace, digital signage proves effective with high return on investment, especially when implemented at the point of sale (POS).
A Look at the Digital Signage Market
In the fourth quarter (Q4) of 2008, ABI Research conducted a study titled, “Digital Signage Market Analysis.” With the help of independent retailers and advertisers looking to target consumers in the out-of-home media market, ABI Research forecasted the digital signage market to more than double in size over the next five years.
ABI Research’s forecast was legitimized as the “Quarterly Business Barometer Survey for Q4 2010,” and was released and completed at the Digital Signage Expo, an international tradeshow and conference dedicated to digital signage, interactive technology and out-of-home networks. It was concluded by survey feedback that “As for the future of the industry, 70 percent of end users and network operators felt ‘very positive’ about the future of the industry versus 61 percent the previous quarter. By comparison, 63 percent of advertising and marketing companies felt ‘very positive’ versus 60 percent the previous quarter, and 58 percent of technology and content providers felt ‘very positive’ about the future of the industry versus 54 percent the previous quarter.” At this rate of acceptance it appears that digital signage may become a key part in the future of POS.
Why Independent Retailers Should Deploy Digital Signage at the POS
As revealed by the Quarterly Business Barometer Survey for Q4 2010, an impressive 97 percent of all survey participants in North America remain positive about the future of the DOOH industry. The top reasons independent retailers deploy digital signage at the POS, according to Wil Putt, president of Vital Media, a digital signage company, are that digital signage:
Helps in augmenting sales staff: While an independent retailer’s counter staff may be busy actively selling or unavailable due to other daily activities to answer customer questions, digital signage provides a mix of brand offers, dealer specials, seasonal promotions, and other informational advertising once provided only by sales staff.
Provides incremental revenue: Retailers find measurable increase in incremental revenue associated with digitally displayed products and services not generally known by the customer.
Improves wait time: Well-positioned digital signage helps to keep a waiting customer informed and attention diverted to make wait time seem shorter.
Ensures message management: Messages can be modified at any time with digital signage, keeping customers up to date on the latest products, sales, and specials offered by the independent retailer.
Meets customer expectations: As customers grow to expect these types of promotional signage, independent retailers must learn to align with customer expectations, and in the process will be able to present product and service information in a way customers have become accustomed to receiving it.