Digital Signage: Needs to become Mission Critical in the Retail Industry
According to the study, “Marketing & Media Ecosystem 2010,” a joint effort by the Association of National Advertisers, the Interactive Advertising Bureau, the American Association of Advertising Agencies and management consulting firm Booz, Allen, Hamilton, 51 percent of respondents identified limited experience with digital media. The study indicated that fewer than 25 percent of respondents to a recent study of marketers, agencies and media companies said their organizations were “digitally savvy,” while more than 90 percent reported they plan to increase what they spend on their digital marketing efforts. The disparity highlights the inherent problem with advertising on digital signage networks.
As I have said in the past and continues to be true today is one of the serious impairments to growth of the digital signage industry is the fact that retailers do not recognize digital signage as a mission critical application. Because of this, retailers who are considering digital signage are easily convinced to delay the implementation of digital signage networks when the economy or other internal business issues are encountered.
This intrigues me because studies of digital signage deployments around the world have indicated that over 90+ percent of customers who travel through a store recognize digital signage advertising and are attracted by the ads displayed on the screens. Up-sale of products and services, due to digital promotions and focused in-store advertising, has increased as much as 35+ percent is various retail locations around the world. Other studies have indicated that from 50 to 70 percent, depending on the research you read, of customers make purchase decisions while they walk through the store.