ROI, ROI, ROI. This three-letter acronym is an important one to use and remember. Recent studies by the Columbia Business School Center on Global Brand Leadership and the New York American Marketing Association found that Return on Investment (ROI) in marketing departments is not always used to set budgets. Of 243 CMOs and other marketing execs, 57% did not set their marketing budget using solid ROI-based metrics. ROI plays an important role in deciding whether or not a campaign was successful, and many of the marketing and advertising execs do not have sufficient data to properly calculate it. Many of them believe that simply measuring the audience they have reached is a sufficient metric to calculate true “marketing ROI.” But how do these marketers obtain and optimize the metrics for measuring the audience reach? Digital out-of -home (DOOH) advertising is providing a new solution.
Why Digital Signage Is Important
DOOH media is a relatively new and growing concept that is making waves in the marketing and advertising world. The key feature to DOOH advertising that regular out of home advertising does not have, is a plausible way to collect impression and conversion metrics in real-time (an impression is a single consumer viewing the digital signage). This information can then be used to make on-the-fly adjustments to the advertising campaign to convert impressions to sales.
In a retail environment, DOOH advertising often uses interactive displays to engage customers, and many of these digital displays have software that tracks impressions. Conversion and engagement can be tracked as well; and if the digital signage has touch capability, the customer can then engage with it to purchase a product with integrated point-of-sale software.
IdentityMine recently came out with proprietary software built for the Microsoft Surface 2.0, which combines digital signage, a tablet device, and a mobile component. This Omni-channel retail solution drives consumer commitment to a product by seamlessly connecting with a buying experience through the digital advertising. This is an easy way to convert the consumer into a paying (and returning) customer.
Another benefit and ROI metric is cost avoidance for expenses such as flyers, brochures, and sales collateral that all businesses could really take advantage of. While cost avoidance is not the primary target of DOOH advertising, it is definitely one of the metrics that needs to be factored into any campaign.
As with other ROI-based marketing or advertising campaigns, the return should be carefully considered in any DOOH campaign.