Dynamic Signage

By Lyle Bunn

Increasingly, more and more stores are utilizing flat-panel screens for digital messaging and customer engagement. Such initiatives are being advanced by a wide range of departments, from marketing to technology. And they are referred to by a variety of names, including digital place-based media, retail media, dynamic signage, location-based digital display and enterprise media (the term digital signage is a bit dated.)

Here’s an overview of what the C-suite, and others involved in dynamic signage, should understand about the medium.

Prolific: There are more than 20 million displays currently in use, with the figure growing 10% annually. According to Arbitron/Nielsen, 70% of North Americans have seen and have made a decision based on these displays. The media-savvy millennials, a 100-million strong demographic at the beginning of a lifetime of buying, like the fact that location-based display messaging can motivate mobile download, browsing and commerce.

Brand building: The medium is typically a very high payback initiative having a positive impact on a company’s valuation through informing, influencing and inspiring your shoppers and your staff. Retail results typically include a 4% to 50% revenue increase (less for mature brands — more for new or aspirational products), 5% to 15% more product/service inquiries, and a 40% improvement in brand recall.

Also, 80% of visitors say it improved their experience on location and reduced perceived waiting time by 40%.

Owned media: Digital place-based media is considered “owned” media by the retailer in the “paid – owned – earned” model, displaying messaging that is “paid” by brands and drives more “earned” media for the brand and the retailer through social media, viral marketing and public relations media coverage.

Funding: Messaging on these displays can be paid by merchants. Once the technology infrastructure is in place, which can be financed to change the CapEx to a monthly OpEx, it is content that delivers results desired by both the retailer and its merchants. As the medium simultaneously improves branding and merchandising, while improving the ambiance and vitality at a location, its focus is typically on shopper conversion and increasing revisit frequency and number of shoppers in the party.

Visual appeal: Visual is the new language, according to Paco Underhill of Envirosell. People buy what they can see. Visual communications at the point of decision, waiting or gathering gets noticed.

Nimble, flexible messaging also allows promotional messages to easily be changed so they reflect and align with major holidays and retail events in the year.

C-Suite: The benefits of on-location digital media reach across the organization to include marketing, information technology, human resources and facilities, design and operations. Sponsorship by a CEO or COO positions dynamic media as an enterprise initiative intended to serve the goals of multiple business units and the enterprise at large.

Investigations and planning are best advanced by a briefing on the medium from the CMO or CIO that details expected costs and benefits and organizational implications. Its use in similar or competing organizations should be included, along with a suggested action plan. Naming a project lead is critical, as are regular update briefings on new findings and planning progress toward realizing business value.

Dynamic place-based media has been proven to provide high value. Effective planning is fundamental to its successful use.

Lyle Bunn is an analyst, adviser and educator in North America’s digital out-of-home industry. He has published almost 300 articles, white papers and guidebooks ([email protected]).