THE DATA BEHIND DIGITAL SIGNAGE SYSTEMS

HOW MANY CONSUMERS ARE EXPOSED TO DIGITAL SIGNAGE?

In 2010, 70% of Americans over age 12 were viewing digital video displays each month (1), which was an estimated 181 million people. However, that number has certainly grown immensely, because the number of companies displaying digital signage has been increasing steadily each year.

More specifically, digital signage installations are growing by up to 40% per year (2), and are not expected to stop anytime soon. The compound annual growth rate (CAGR) is expected to continue at 8.94% through 2020 (3).

WHY IS DIGITAL SIGNAGE USE INCREASING?

More companies are embracing the cost-effective opportunities offered by new dynamic advertising technology. Companies with digital signage are more likely to get customers in the store, direct them to more areas of the store and increase customer time in the store. Multiple studies prove the strong ROI and ROO of digital signage systems.

In 2010, Nielson tracked digital signage use in 120 grocery stores over time and found that 4 out 5 brands experienced increases of up to 33% in additional sales compared to when using printed signage alone (5). Also, 68% of customers agreed that digital signage would “influence their decision to buy the advertised product in the future” and 44% agreed it would “influence them to buy the advertised product instead of one they planned to buy.” (6)

With digital signage, messages can be changed on demand with very low cost (unlike printed signage), so companies can speak directly to their customer with the right message, in the right place and at the right time. Companies can switch menu items and products according to the time of day, season or available inventory with ease. They can also showcase more products and information than ever before with multiple features in a slideshow format, and enhance the in-store experience by engaging customers and creating dynamic interior decor.