Reaching the Right Customer through Digital Signage

Mark DiMattei and Tim Greene
Apr 2, 2012

Marketing is in a constant state of flux. In the past few years, we’ve seen the growth of TransPromo, multi-channel marketing, and VDP as marketing service providers shift their strategies to grab the attention of media-savvy consumers. Marketers are aware of various techniques to getting the most out of their expenditures, and most have come to the conclusion that carpet bombing with flyers and generic advertisements doesn’t work anymore. Demographics now play a huge part in the success of marketing campaigns as brands attempt to reach the select few people that will actively purchase their product or use their service. Akin to traditional printed signage, digital signage provides many benefits that can allow marketers to capitalize on this new system of targeted promotional messaging.

The big advantage to digital signage systems as an advertising method is its ability to deliver a targeted message based on its location and what is known about viewers in those locations at a specific time of day. Advertising messages can be crafted to improve their effectiveness to that select audience.  Targeted messaging can be created that blends promotional messaging as well as directional information, news, time, temperature and other information. In a way, digital signage has become a digital cousin of TransPromo—combining informational content and commercial messaging in one electronic space.

The challenge from a signage and graphics perspective is how can companies presently producing printed signage and graphics play a role in the digital signage business? Even our research has shown that digital signage is gaining traction as an important medium. As a part of InfoTrends’ Who Buys Wide Format Print Buyer Study, we asked people that buy wide format signage and graphics if they have ever considered using (or are currently using) digital displays instead of wide format graphics. While only 11% of wide format buyers indicated that they have done so, another 38% stated that they expect to purchase digital display advertising at some point. 

 

Source: Who Buys Wide Format? Print Buyer presentation; July 2011

Most respondents to this survey also stated that they expect to continue to use printed signage alongside their digital signage, which is how wide format signage and graphics producers should approach this concept of digital signage. The idea should be to use it not as a replacement to print, but a supplementary source of information to promote in a more personalized way that could reach where a static print piece might not.

Make no mistake, there is a danger that digital signage will erode the revenues of traditional wide format signage. Key applications such as backlit signage and billboards are likely the low-hanging fruit, but in-store POP displays are also a target. To better understand the potential that digital signage could have on the market, InfoTrends is planning a study this summer entitled Print vs. Display: a Signage Perspective. The objective of this study will be to look at the signage and graphics applications that could be eroded by digital displays, and weigh the benefits and economics of digital print versus digital signage. For more information, please contact Scott Phinney at (781) 616 2123 or scott_phinney@infotrends.com.

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