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Q: Data on the effectiveness of digital signage advertising ( Answered,   0 Comments )
Subject: Data on the effectiveness of digital signage advertising
Category: Business and Money > Advertising and Marketing
Asked by: flectumblot-ga
List Price: $50.00
Posted: 14 Aug 2005 10:26 PDT
Expires: 13 Sep 2005 10:26 PDT
Question ID: 555653
Looking for any data on the effectiveness of digital signage as an
advertising medium.

Request for Question Clarification by czh-ga on 14 Aug 2005 20:20 PDT
Please tell us more. What kind of "digital signage" are you asking
about? I'm Billboard size displays at shopping centers, TV screen size
lcd screens in retail stores (supermarkets and department stores) and
the running message on the Goodyear blimp above various sporting
events is what comes to mind for me. Please define what "digital
signage" means for you. Thanks.

~ czh ~

Clarification of Question by flectumblot-ga on 15 Aug 2005 02:29 PDT
Let's define digital signage as digital displays of any size located
in public spaces like convenience stores, retail stores, shopping
malls, elevators, subway stations, on gas pumps, etc., that show
convergent media (any combination of video, images, text, sound)
advertising/marketing messages.
Subject: Re: Data on the effectiveness of digital signage advertising
Answered By: bobbie7-ga on 17 Aug 2005 13:23 PDT
Hello Flectumblot,

Below you will find information and data regarding the effectiveness
of digital signage as an advertising medium.

?The digital signage industry has reached the ?buzz? stage in its
evolution. People are talking because virtually everyone notices the
impact of high-resolution digital displays in an airport, a mall, or
some other public place, and the potential of other applications is
not hard to imagine. Some have framed it as the next ?killer app.?

?Digital Signage ?can attract customers to come into their store. Once
the customers are there, it can help them move into and through the
store, provide cross-selling and co-marketing opportunities, and
influence the purchase of items the retailer most wants to sell. These
statements are backed by a May 2005 study by the Platt Retail
Institute (sponsored in part by ActiveLight), which concluded,
?Messages communicated via retail digital signage systems can have a
meaningful impact upon consumer purchase behavior in retail stores.?

Read more here: 
Sound & Video Contractor: July 1, 2005

The digital signage market is expected to surpass $2 billion in
overall revenues by 2009. Charts offered by permission from a recent
InfoTrends/Cap Ventures study.
See the chart here:


Case Studies: The Power of Digital Signage

Relevant excerpts:

?A movie theatre increases concession sales by 30 percent. A community
bank boosts cross-selling by 20 percent. And an airport gift shop
realizes 20 percent growth. The promise of digital signage has become
a reality.?

Tracking ROI progress

?The companies that traditionally measure ad impact, such as Arbitron
and A. C. Nielsen, have added digital signage to their portfolios and
conducted some broad studies. One report from Arbitron and Edison
Media Research looked at digital signage networks in shopping malls.
The study found shoppers three times more likely to look at billboards
with motion than at static signs. Digital signage also raised the
average recall for advertisers by 18 points. The organizations also
looked at a specific project that one major national store launched in
California and found overall sales of advertised Father?s Day items
were 37 percent higher in stores with the digital signage than in
those without.?

?Macy?s is keeping its specific sales results confidential, but
CoolSign has cited more than 2 percent sales lifts across the entire
store ? and as high as 25 percent sales increases in specific

?Marshmallow Peeps candies are a seasonal offering the chain puts out
around Easter. Last year, without the digital signage, Harkins
concessions sold 5,000 units of Peeps; this year, with the signs, the
number hit 15,000.?

?Concession sales are 30 to 35 percent better when the digital signs
are in action, he adds. Comparing locations with digital signage to
similar ones without, the participating sites average 30 percent
better sales.?

Read the full text of this article here:

Or hereProAV Magazine - June, 2005


Study says Screen Advertising in Shopping Malls Increases Ad Recall
and Purchase Intent

The data below dnotes that shoppers exposed to full-motion digital
displays had significantly greater recall and purchase intent?

Type of product or retailer: Automobile Manufacturer 
Increased ad recall (in percentages) versus control group: 236 percent 

Type of product or retailer: Specialty Retailer 
Increased ad recall (in percentages) versus control group: 156 percent 
Increased purchase intent (in percentages) versus the control group: 40 percent 
Type of product or retailer: Video Game Publisher 
Increased ad recall (in percentages) versus control group: 144 percent 

Type of product or retailer: Consumer Electronics Company 
Increased ad recall (in percentages) versus control group: 88 percent 
Increased purchase intent (in percentages) versus the control group: 111 percent 

Type of product or retailer: National Retailer 
Increased purchase intent (in percentages) versus the control group:  40 percent 

Source: AdSpace Networks, Inc. press release


Digital signage drives sales and improves brand recognition

?Arbitron, the media and marketing research firm, surveyed 1,400
consumers who visited shopping malls on both the East and West coasts.
Some malls featured digital signs on plasma television screens. The
other locations used traditional advertising media."
?Shoppers who viewed the digital signs were 1.56 times more likely to
recall a retailer's advertisement and make a purchase, the study says.
Further, 40% of these shoppers were more likely to purchase from the
merchant that used the digital signs. Goldberg says that retailers
using the signs to boost new-item introductions are seeing up to seven
times the usual sales lift.?

Real Digital Media: July 2005


Digital signage helps Tesco inform, entertain and boost sales 

Read about it here:
National Retail Federation: March 2005


Dynamic Digital Signage: The New Age of Advertising 
Positive Results

?Advertisers are now turning to other avenues that bring them better
results with lower spending. They realize that influencing purchase
decisions at the point of sale is far more effective than any other

?Some retailers who implement digital signage at their stores are
seeing positive results. Digital signage is a better tool for the job
since it can display individual messages at selected locations.
Advertisers can profile their audience ahead of time and put up the
right message at the right place. The digital signage market will
experience double-digit growth in the next few years and will become a
major channel with size comparable to traditional media.?

Video/Imaging Design Line


?Digital signage receives 10 times the eye contact of static signage.?

?Digital signage is providing companies with significant increases in revenue.?

?Best Buy, Pepsi-Cola and Musicland on how they have built their
brands by using digital signage. ?Store results: increased traffic,
product lift, stock turn and an improved customer experience?

?Wal-Mart brought in an astounding $100 million in 2004 by selling
advertising time to their suppliers. ? Generating revenue from an
in-store digital signage network requires careful planning and a sound
sales strategy.?

Digital Signage Summit: April 2005 


Digital signage offers  more cost-effectiveness, flexibility and
control at product and service selection locations.

?Many retailers such as Apple, McDonald?s, Bank of America, Circuit
City, Safeway, Sears, Virgin Music, US Postal Service and Nike, have
run successful pilots during 2004.?

?At the same time, some of the firms shifting ad spending to digital
signage include astute media buyers and brand-builders such as Bayer,
Black & Decker, Colgate-Palmolive, Disney, DIRECTV, Frito-Lay, General
Mills, Heinz, Kodak, L?Oreal, Minute Maid, Nestle, Sara Lee, Starter,
The New York Times, LG Mobile Phones, ABC, FOX, Univision and Lee

?Revenue increases of 30 percent and more are being realized on
products profiled, with striking results such as a 109 percent sales
increase for a new soft drink and 319 percent for a new calling card.
Digital signage in bank teller lines results in customer inquiries
about new services.?

?Digital signage offers high return on real estate." 

Read the rest of the article here:
Broadcast Engineering: Dec 22, 2004

Additional information that may interest you

What is "digital signage" and how can it help your business?
WireSpring Technologies

Retailers that are experimenting with digital signage.

Search terms used: 
Digital signage market
Effectiveness of digital signage
Digital signage increased sales

I hope the information provided is helpful!

Best regards,

Request for Answer Clarification by flectumblot-ga on 19 Aug 2005 06:48 PDT
Thanks, Bobbie7. This info is great, but I'm already in possession of
the Cap ventures study from 2002 and have seen most if not all of this
stuff from my own Web searches. The real value (and what I'm willing
to pay $50 for) are real customer validated experiences with digital
signage as an advertising medium, not case studies put out by trade
rags or digital signage companies!

Who is using it and what do they say about its success (or failure) as
a tool to put their message in front of viewers in public and private

Clarification of Answer by bobbie7-ga on 19 Aug 2005 10:17 PDT
Dear Flectumblot,

Thank you for your clarification.

Since you said that you were looking for ANY data on the effectiveness
of digital signage as an advertising medium, a researcher can only
assume that you have not done any research previously. It was not my
intention to provide you with duplicate material in my answer. It
would have been helpful to know which sites you have already visited
and what information you have already seen beforehand.

In any case I did additional research and am posting my findings below.

From Frost & Sullivan Digital Signage Executive Summary :

?The key drivers for the North American Digital Signage Markets are as follows:

- Eclipse of Mass Media creates demand for Digital Signage

-  Decline in prices converges with advances in technology to boost
prospects of digital

-  Increase in efficiency of in-store sales promotions using digital
signage encourages

- Opportunity for top-line growth fosters investment in digital signage

-  Support for "event based exposure" stokes adoption of digital signage

-  Integration of Digital Signage with in-store databases enhances
relevancy of content and
stimulates growth

-  Focus on in-store experience as differentiator urges investment in
digital signage

- Pro AV industry?s need for new business avenues fosters its interest
in Digital Signage?

?Frost & Sullivan estimates the size of the North American Digital
Signage Advertising Markets comprising advertising revenues from
digital signage networks at $102.5 million in 2004 and forecasts the
market to reach $3.7 billion in 2011 at a CAGR of 67.12 percent.?

?Frost & Sullivan estimates the size of the North American Digital
Signage Systems Markets comprising of revenues from sale of digital
signage systems including displays, software, software maintenance,
media players, design, installation and networking services at $148.9
million in 2004 and forecasts the market to reach $856.9 million in
2011 at a CAGR of 28.40 percent.?

? Frost & Sullivan estimates the size of the North American Digital
Signage Display Markets comprising of revenues from sale of displays
for digital dignage systems is sized at $97.2 million and expects the
market to grow at a CAGR of 25.11 percent to reach $489.7 million in

See Figure 1-1 on page 3:
Impact of each driver on the North American Digital Signage Markets
over the period 2005-2011

See Figure 1-2 on page 4:
Impact of each restraint on the North American Digital Signage Markets
over the period 2005-2011

Download here:

Here are  two excellent whitepapers addressing the exact issues you
mentioned.  Unfortunately I have not come across any similar products
that are freely available.

Establishing Retail Digital Signage As New Media & Measuring Its Effectiveness 
Publisher: Platt Retail Institute  
Product Code: B40018 
Author: Steven Platt, Francis Mulhern, Guy Vaughn 
Mfg. Part No: 20050501  
Format: Paperback  

Product Description 
?Retail Digital Signage is being embraced as a new marketing medium by
a growing body of constituents. The research objective of this working
paper is to investigate the extent to which retail digital signage as
an advertising medium can affect consumer shopping behavior and
empirical research.?

In this working paper:

?Addresses the fragmentation of mass media to acertain whether
marketing decision makers should be receptive to new in-store
advertising medium. The paper concludes that Retail Digital Signage
has distince functunality that warrants its inclusion as a part of the
marketing mix. The author explores the exten to which Retail Digital
Signage influences consumer shopping behavior in the retail
environment, defines retail digital signage and adavacnes tis benefits
as a new retail in-store marketing medium. Detailed testing methods
that can be used when measuring the impact of retail digital signage
is explored. The pare also demonstrates the application of these
testing methodologies by detailing results acheieved from a
convenience store and grocery store digital signage system

Order here:


Implications for Retail Adoption of Digital Signage Systems

Publisher: Platt Retail Institute  
Product Code: L00041-0009 
Author: Steven Platt 
Format: Paperback  

Product Description 
?Digital signage systems are rapidly being adopted by some of the
largest retailers in the world, including Tesco, Target, the United
States Postal Service and the Bank of America. The rationale for
implementing this emerging technology includes the impact upon the
customer shopping experience and the related financial implications
for a retailer. This White Paper explores the decision matrix
supporting retailer adoption of digital signage systems, reviews the
considerations required for an implementation, and advances a
framework for assessing a retail digital signage (?RDS?) system. This
is significant for the following reasons:

The cost associated with implementing an RDS system can be substantial. 
The failure to adopt an RDS system may place a retailer at a
competitive disadvantage.
The benefits to be derived from RDS can be considerable.? 

Order here:


I have only been able to uncover tidbits of information from various
sources but nothing as informative as the above reports.


?At H&M's flagship store on Fifth Avenue in New York City, customers
are bombarded with music and fast-moving videos presented on clusters
of small flat-screen TVs behind the cash registers. The Swedish
clothing giant draws huge crowds -- and often long lines -- and the
TVs are there to entertain the masses while they wait. "I like it a
lot," says Bridget Heliak, a 17-year-old shopper visiting from
Buffalo, N.Y. "It really gives you something more to do than just

Drawing customers in.

?The screens attracts customers like moths to a flame. And part of the
allure is in the ability to customize. At a Lazarus-Macy's store in
Cincinnati, flat screens show Ohio State football games each Saturday,
helping to attract foot traffic. "It's suddenly now a draw for
husbands to come in and watch the games" while they shop with their
wives, says Jim Crawford, a Columbus (Ohio) retail-technology
consultant who has worked with Macy's.?

Business Week Online: November 2004

?Point-of-Purchase Advertising International (POPAI) research shows
that specific brands advertised on digital signs can see a 30-percent
increase in sales, while overall store sales can increase as much as
12 percent. Even basic moving messages in a low-resolution dot-matrix
display draw seven times the attention of printed signs.?

Retail Traffic Magazine

I hope this information is helpful!

Best regards,
There are no comments at this time.

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