Connectedsign Digital Signage White Paper

Making The Case For A Digital Signage Deployment
Connectedsign, LLC

Many store owners still balk at the thought of installing a digital signage network within their venues. Sometimes, their hesitance is due to the level of investment required. Other times, it's their lack of familiarity (and therefore, lack of comfort) with the technology. Still other times, owners have the impression that their printed signs are just as effective as an in-store media solution would be.

When making the case for a DOOH deployment, you'll discover that there are plenty of fallacies you'll need to dispel. Price is not always the main sticking point. In this article, we'll take a closer look at one of the most common objections that venue owners pose: "my conventional, printed signs are just as effective as digital signage." I'll explain how to position the value offered by a DOOH network so the benefits become clear. I'll also describe why comparing the costs between an in-store media network and printed signs is more complex than it seems.

Are Printed Signs Effective?

Think about how most retailers use printed in-store materials. In most of the cases I've seen, space is dedicated to promoting the venue's most popular items. In other words, the signs advertise products that are already selling well. Keep in mind, the purpose of in-store promotions should be to lift sales of items that might not otherwise sell. Dedicating valuable real estate to promote successful products is a waste.

One of the reasons retailers make this mistake is because their printed collateral will likely be displayed for the entire month. Printing costs are high, so their marketing budget is allocated to "sure things." So, are printed signs in retail venues effective as a promotional tool? They can be, but their high costs and lack of flexibility hamper their effectiveness.

Repositioning The Value Equation

In contrast to traditional print media, digital signage gives the venue owner an enormous level of flexibility. The screens can be placed in key locations and the content can be created to push small-scale promotions. If a promotion doesn't lift sales, attract inquiries, or otherwise meet expectations, it can be discarded and replaced quickly with another segment.

This type of flexibility is valuable to hosts. Because they can design small-scale promotions that can be replaced quickly, they'll enjoy far more freedom to test ideas. For example, a venue owner can run a one-day promotion for a specific item without worrying how he or she will recoup printing costs if the idea fails. Production costs for the content can be kept to a minimum by creating the promotional spots in-house.

Jumping The Budget Hurdle

The price of a digital signage deployment understandably remains an issue for many hosts. Venue owners hear the dollar figure they'll need to invest in order to have a DOOH network installed and immediately compare it to the cost of their print collateral. This too, requires proper positioning.

A digital signage network - including the media players, screens, and software - will last for approximately five or six years (at least). The amount of the initial investment needs to be amortized over that time to make a true comparison with a print sign investment. As noted, printed signs are expensive. Assuming a venue owner replaces them each month, their aggregate cost over five or six years may be close to the investment for an in-store media solution.

One last factor to consider: shoppers' needs and preferences are changing. It is becoming more difficult than ever to catch their attention while they are browsing through a retail store. A digital signage network has a far better chance to attract attention than stale printed signs. Once the value and cost of an in-store media solution has been positioned properly, venue owners are far more likely to take the next step.

By Loren Bucklin
President

Connectedsign, LLC
lbucklin@connectedsign.com
www.connectedsign.com
866-833-2723

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