Digital signage is on a meteoric rise, both in Europe and the US. Originally utilized as branding and advertising on high streets, landmark sites and sports events, digital signage is now being utilized as a successful in-store marketing tool; revolutionizing retail and providing a whole new dimension to customers’ shopping experience.
Research in 2007 indicated that around 75 % of retail purchasing decisions were made in store, highlighting how underused digital signage was in relation to a marketing opportunity. Yet the Return on Investment (ROI) figures have been increasing every year, highlighting that there is still room for improvement for retailers keen to employ digital signage to its full potential. In 2009, a Digicom survey found that 78 percent of customers felt that in-store digital signage displays made a particular product more attractive than if it was advertised via standard print signage.
Current figures demonstrate that on average, digital signage solutions deliver an 18 percent increase in sales. This figure is substantial when, on average, only two in every 100 consumers make a purchase in an ordinary retail environment. It is not surprise then that in Europe, digital signage installations are set to rise by a whopping 144 percent over the next three years. According to a new survey by POPAI, this figure doesn’t look like slowing after 2013 either.
With this swift growth in mind many of the industry’s top protagonists will meet at the Next Generation Retail Europe event (hosted by GDS International) in March 2011 to discuss the importance and growing various types of digital signage. Among the high-profile retailers in attendance will be Giorgio Armani, Marks & Spencer, McDonald’s, Tesco, Carrefour, Diesel, Edeka Zentrale, Sainsbury’s and Pearle Europe, who will each send key executives to the meeting to discuss digital screens, interactive kiosk technology and in-store broadcast networks among other discussion points.
“[Retailers have] learned a lot of lessons, says Mike Gatti, Executive Director of the Retail Advertising Marketing Association. “We’re seeing retailers are bringing their screens down to shelf level, they’re embedding them with a lot of products, and they’ve really tailored the messages a lot more so they are able to deliver the message quickly and a lot more effectively to the customer.”
Other issues within the digital signage realm include linking the necessary hardware, software and media players together to promote a continual, uninterrupted campaign, and sustainability, where companies can utilize solid-state players, which help its carbon footprint. All of this and more, will be discussed at the Next Generation Retail Europe event next March.
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This Article is authored by Jake Mazan, who is a guest author at Business Fundas. He is a Senior Research Analyst cum Manager at NG-Online News.