Digital Signage Market Research

Digital signage is the most compelling and effective way for businesses to communicate with customers regarding sales, specials, new items, etc. Studies show that people are far more likely to engage and retain information they can both see and hear.

Independent surveys done by POPAI (Point of Purchase Advertising International), A.C. Nielsen, Source One, Arbitron and Summit Research Group have confirmed that what people see on the screen helps influence their purchases and this increases sales by an average of 11.2% . Real world experimetns demonstrate that digital signs have 10 times the eye contact of traditional static signage.

So how big is the digital signage market and how does it change the landscape of the advertising industry? According to the data from CAP Ventures, the total ad spending in 2003 was $149B. Traditional advertising channels such as TV, newspaper, radio and magazine made up 80% of the entire budget and digital signage occupied less than 1%. But things are changing rapidly. Advertisers realize that the effectiveness of the traditional channels such as TV is losing steam due to a number of factors.

Technologies such as TIVO allow viewers to skip over the ads entirely and channel surfing becomes a habit practiced by most viewers. This further declines the effectiveness of advertising using broadcasting methods. People are now turning to the internet for news and current events, this has caused many newspapers across the country to see a sharp decline in their circulation base, making newspaper advertising no where near as effective as it once was.

The internet is being used more frequently than the yellow pages to look up businesses and phone numbers leading to a sharp decline in effectiveness of the advertisements within the yellow pages. Advertisers are now turning to other avenues that bring them better results with lower spending.

A direct quote from market research .com in the following article: Dilution of Mass Media Leads to Increased Demand for Digital Signage – "In an era of booming consumerism, marketers’ task of effectively communicating with their target audience is paramount. As advertising rates continue to climb, media clutter and low audience attention spans have diluted the effectiveness of traditional print and television media. Consequently, in focusing on a more personalized target market, marketers have raised their spending on non-media channels such as digital signage, telemarketing, direct mail, and e-mail. While the ability of digital signage to enhance brand image using specific full motion video messages at opportune moments makes it a highly efficient medium, the increasing popularity of 'do not call' lists and e-mail spam filters further add to the enormous potential of this medium."

In a research project at four high profile retail locations in The Netherlands involving more than 24,000 shopper observations and 1,562 interviews, determined that the recognition of specific promotional messages was extremely high: up to 64 percent of shoppers recalled at least one themed message without prompting and 57 percent felt they had learned something from the displays.

Digital signage is revolutionizing the way products and services are marketed to consumers. The question to you is not if you will use digital signage, it’s when and how. Whether you are interested in advertising or hosting, give us a call for a free no obligation consultation today.