Earlier this week, I posted a blog showcasing the Surface application we're developing for our retail solution. Before the digital signage for our retail solution is showcased, I though it would be a good opportunity to explain why we integrated digital signage to our retail solution. Trends in the US market show that digital signage accounts for 35% of digital out-of-home (DOOH) advertising, and considering DOOH advertising spending reached $2.7 billion in 2010, consumers are going to see more digital advertising every year.
The reason we are seeing an increase in digital signage is because advertisers are able to display more sophisticated content that addresses engagement and interaction. How many of you see TV advertising as an unpleasant interruption to the show you are watching? Digital signage addresses this problem because consumers see DOOH advertising space as a welcomed distraction while they are waiting in line or at the gas pump. One of the greatest strengths to digital signage is that advertisers have the ability to acquire audiences on a hyper local basis.
Lets talk ROI
Calculating ROI on digital signage can be tricky if your measurement plan doesn't capture very specific information. Audience size (count), audience profile (demographics), and audience behavior (presence, notice, and dwell time) should be among the metrics to identify. There are three universal metrics taken for digital signage ROI; Cost per thousand viewers (CPM), impressions, and immediate feedback response. All three of these metrics provide powerful insight, especially immediate feedback response - by prompting the viewer to interact with the digital signage, you can measure how many people are viewing your signage rather than just passing by.
Point-of-sale (POS) integration is considered the holy grail because of the enormous wealth of data it generates. With POS integration, you know know if store sales are lifting, you know the category that is lifting, and you know if the stock keeping unit (SKU) is lifting. Conversely, POS integration can tell you what category is falling - and you can then take action.
What to do with POS data
Now that you have this wealth of data from POS integration, you can create sales incentives to drive traffic to to the signage on a typically slow day or increase programming on days that see more traffic.