March of the Statistics

Many of our past posts have discussed marketing, retail environments, sign design, content and audio considerations. But why is this dynamic sign technology getting so much attention? Why should you invest in this new learning curve as a digital print or sign professional? From software selection, to network design and configuration, to the right displays and peripherals and then installation and training for the client, it is quite an investment. Is it worth it? Okay, let’s march a few statistics out for March, and then you decide…. (We’ll use plenty of pictures to keep it lively!)

It is no coincidence that with 74% of all purchase decisions in mass merchandisers made in store, an increasing number of brand marketers and retailers invest in this medium.

When electronic digital signage first came onto the scene a few short years ago, there was no way to quantify it in terms of return on investment or impact on the marketplace, or even consumers. With the advent of scanner technology, brand marketers and retailers have been able to immediately determine the effectiveness of P.O.P.

POPAI‘s studies, undertaken from 1994 through this year, have consistently demonstrated significant sales increases for products supported by Retail Marketing across industries and geography.

Digital Signage has been proven to reduce perceived wait time by 40%-60%. That makes for happier, friendlier, more relaxed, and more satisfied clients.

LobbyPOP SayingAt the same time, you have a unique opportunity to tell your audience about additional products and services you offer.  You can be sure they’ll remember… it’s proven that digital signage can increase ad recall by more than 60%. And in case you’re wondering about the bottom line: Digital signage increases sales by 18%-62%!

InfoTrends/CAP Ventures has been tracking the industry since 1999, and adjusted Compound Annual Growth Rates are over 30%.

And, the most recent Digital Signage Pricing Report from Wirespring shows that the cost to deploy displays has dropped 14%. When Wirespring first began tracking in 2004, the cost per node (screen and media player) averaged $8500. In 2010, this had dropped to $3720.

It was only a few short months ago that Walmart released some information pertaining to their (in)famous Smart Network. In case you missed the announcement, the company calculated the following percentage increases in store departments using the Smart Network:

Sales lift by department
  • Electronics: 7%
  • Over-the-counter: 23%
  • Food: 13%
  • Health/beauty: 28%

They also disclosed the point in a product’s life cycle when the network seemed to be most effective:

Sales lift by product type

  • Mature items: 7%
  • Newly-launched items: 9%
  • Seasonal items: 18%
  • Items on rollback: 6%

From two case studies on how the Smart Network affects product sales (thanks to Digital Signage Today for the summaries):

In the first, a breathing-strip manufacturer purchased an endcap campaign, in which a 90- to 120-second message ran on endcap screens with product positioned around it. While the program was running, the brand saw a 100 percent sales lift on the specific product, determined by testing versus a control group.

In another campaign, the retailer wanted to increase the number of shoppers that opted in to receive discounts and offers via SMS. It staged a four-week campaign in which shoppers were told that if they’d sign up by dialing a specific code, they’d get exclusive announcements of new “Rollback” offers. During the four-week period, the retailer saw a three-fold increase in daily opt-ins.

Still with me here? We’re giving you this so you can go forth and conquer your clients’ fears!  Okay, how about YOUR fears 😉 Check this out:

According to data cited by Microsoft’s Edson, there are approximately 2 million digital signs across the US right now, and that number is expected to grow to 7 million over the next 5 years. For that to happen in a nice, linear fashion, it would mean that the industry will deploy 1,000,000 screens every year for the next 5 years.

The above chart shows that Retail remains the largest piece of the digital sign pie, and that Hospitality is second. With Retail, we find every imaginable style of display – from kiosks and endcaps, to video walls and window projections. In Hospitality, the range is not so dramatic. Both present ready opportunities for digital sign professionals.

Hopefully this March round-up of current research has given you a new perspective on your own potential in this arena. Next post, a bit about technology as it relates to content…

Part 4: CLEVR Readability for Dynamic Digital Signs

If you are following this series, you know we are talking about the science behind good sign design, and how this applies to digital sign content as well. In our first post, we reviewed content considerations as  a whole. This brought us to Part 1, CLEVR acronym for Conspicuity, Legibility, Visibility and Readability. We reviewed Conspicuity and what it means in the application called Dynamic Signage. Part 2 discussed Legibility, and how this relates to dynamic content for digital sign systems. Visibility and a great tip for improved dynamic signage was presented in Part 3. If you haven’t read up on the premise, do so with the links above.

And now, to complete the series, Readability is our subject today!

A readable display allows people to quickly and accurately recognize and understand information, in particular, alphanumeric characters. The message should be clear and unambiguous. In traditional sign design, a few words to convey important information is all that is required. The same can be applied to dynamic signage. Again, these displays are not television. It is not a seated audience, for the most part, watching the screen with no other distractions. In an ideal world, there would be nothing but the screen. In reality, there is likely to be other signage, noise, people milling around, and multiple distractions. The dynamic display message, therefore, should be built much like static signage.

This means the concept of readability takes on great importance. If you have only a few minutes to engage your viewer, you should make certain your message is readable – that the message is conveyed quickly and clearly. While we love our HD content, LobbyPOP always includes on-screen text and clear voice-over in bite-sized chunks to assure no part of the message is obscured or lost. Text is often white with a pin-line outline, to assure it shows clearly on any motion background.

Dynamic Signage displays are alphanumeric displays, using letters and numbers, along with graphic images and sound, to convey messages. The contrast ratio for the characters is an important element in readabiliy and legibility.

ReadabilityIn their book, Human Factors in Simple and Complex Systems, Robert W. Proctor, Trisha Van Zandt explain that under optimal conditions, for black text on a white background, the font stock width-to-height ratio is ideally 1:6 to 1:8. For white characters on a black field, the optimal ratio is 1:8 to 1:10. Thinner lines for white on black images are required because of a phenomenon called radiation or sparkle. This is where the light color “bleeds” together due to the contrast -the eye’s reaction.

Keeping the core message concise, and the entire message in a ten to fifteen second clip, is a good rule of thumb. This does not mean that a 30-second spot is not desirable. On the contrary, the core message can be emphasized and repeated in ways that assure readability and recognition. This is the heart of all advertising: Repetition. So whereas traditional static signs can be read several times over in the space of a few seconds, thereby assuring a point is communicated, a dynamic sign can enhance this and “force” repetition upon the viewer by repeating the same points in slightly different ways, with supporting information in concert, much like bullet points in a presentation. 

How many words? How much information per minute? We have validated that seven words or less for the core messaging, and up to eight supporting messages within a 60-second spot can be read and comprehended.  So go forth and multiply your advertising!

Next post: The Power of Imagery – why this is in the wheelhouse of dynamic digital signage!

What is Retail Marketing? Part 1

Annoyingly, ad agency account reps and brand marketers are trying to explain environmental communications to their clients – something that sign professionals, frankly, do so much better. When it comes to the three pillars of visual communications – Legibility, Conspicuity, and Readability – sign design professionals have this down to a, well, science.

Retail Marketing is the bridge, or application, between the brand marketer’s multi-million dollar advertising campaigns and the actual purchase of a product.   It is the last chance a brand marketer has to get their message across to the consumer before a purchase decision is made. This is what we call “the last three feet of marketing.”

Retail Marketing is more effective than any other advertising, when you look at “spend” vs. ROI. What does Retail Marketing include? Here is our list:

  • Point of Purchase Signage: Under foot, at the Cash Zone, in the windows and on display. POPAI’s studies, undertaken from 1994 through this year, have consistently demonstrated significant sales increases for products supported by Retail Marketing across industries and geography.
  • Video (Dynamic Digital) Signage:  It is the only mass advertising medium that can convey the same overall strategic message in differing languages to varying audiences in the same village, city or region and be deployed almost instantly. Over one-third of Americans have viewed retail videos, and one in three has made an unplanned purchase because of it.  
  • Vehicle Wraps: One of the most cost-effective forms of advertising today. If that product and phone number draw 50,000 pairs of eyes, you can bet that the brand marketing is successful. 

Next post: Why you should call a sign professional to help execute Retail Marketing.

Introducing Store Visual Planning, Part 1

Welcome to the blog site for LobbyPOP.com. Today we will introduce the basics, starting at the front door, so to speak: Entrance Zones – what are they?

You first need to understand the current traffic flow of your store and develop a plan that will encourage customers to shop your entire store with their attention focused where you would like it to be. Outside your facility, you have windows and monument or other signage to draw traffic inside.

Many studies affirm that about half of all visitors to your retail location found you because of your sign. Okay, now they step in the door. This is the “Entrance Zone.” 

Here is Part 1 in a series with facts to make you an expert store planner, starting with the Entrance Zone, or lobby: 

  • The entry area is often referred to as the “decompression zone,” where customers make an adjustment to the new environment: they grab a cart, close an umbrella, and take visual stock of the entire store. At the entry, graphical displays welcome and inform the customer. Sales rarely take place in the “decompression zone” – in fact, most sales take place after the customer passes through this area. For this reason, companies like Estee Lauder prefer their cosmetic counters to be placed a few feet in from the department store entry.
  • The decompression zone should act as the opening paragraph of your story – to grab the visitor’s attention, and set the tone for what is in store. The LobbyPOP system, for example, includes floor graphics, wall murals, special effect materials, and video elements that create a positive impression and lasting experience.

Next up, the “Strike Zone” so stay tuned for our next post!