This is the summary of an article by Raymond R. Burke. You can get the pdf of the behavioral targeting article here: Behavioral Effects of Digital Signage
According to a 2008 research, 30 to 40 percent of consumer brand decisions are made in stores. In-store marketing is really powerful. It’s even found to be more effective that outdoor, print, radio or television advertising, but less effective than online marketing. The article focuses on digital signage, flat panel monitors found in stores that continuously replay ads, and their effectiveness as point-of-purchase communication tools.
The main company participating in the research is Tesco plc, an international grocery based in Britain. For each of 100 Tesco stores, 40 plus digital signages are placed in several areas of the store, such as in beauty and health care, beer, wine, etc. An advertising campaign was tagged with several characteristics, including campaign length, category and department, mesage type, frequency, price, product characteristics, etc. Sales are compared for test and control stores during and after campaigns.
Analysis from the Tesco experiment showed significantly higher product lifts for entertainment, snacks and beverage items as compared to non-food items. It seems that these ads are most effective when consumers are only interested in instant, and less effective for planned purchases. Further results showed that products that highly penetrate certain categories had higher increases in sales. Effectiveness of digital signage may be due to day and time of day of the week. Responsivenss of shoppers may be due to visibility, orientation and location of signs. In addition, shorter messages may provide higher increase of sales per screen time. The supporting research is composed of several studies, the first of which is done by Video-Mining Corporation, showing video displays of paint products.
Need State of the Shopper
The experiment results showed that engagement is highest during the weekends. During week days, consumer traffic is highest during the afternoon and lowest in the morning. Engagement during the weekdays is highest during the evening, and lowest during the morning. These differences are due to the fact that shoppers have varying reasons during shopping for day of the week and time of day. A study conducted by DS-IQ, which run digital signage for eight weeks treated primarily according to variations in ad length. There was an 8 to 9 percent increase in sales for 30 second digital ads versus when the ads were not played. However, when 15 sec ads were shown in the same loop, the increase was greater than 50 percent.
Results show that digital signage is different from advertising done on television, and more like point of purchase displays. The best kind of digital signage messages are those that are direct to the point, relevant and simple. Managers should take note that in in-store advertising, it’s best to continue to make some adjustments with the programming schedule of digital signages based on constant analysis on the effectiveness of these ads.