What actually is digital signage?

What is digital signage? Digital billboards as an example image

70 per cent of all purchasing decisions are made at the POS. In order for potential buyers to notice a particular product, it must be more eye-catching than all other products. One possibility: the use of digital signage.

What is digital signage? Digital signage is now an integral part of retail. Whether in the fashion or DIY sector, in furniture stores, clinics, companies, schools and shopping centres, in restaurants, at airports or in food retailing - digital advertising displays can be found all over the world. They are eye-catchers, idea generators, advisors, salespeople and shop windows all at the same time. The range of applications for digital media in retail is huge - but what exactly is digital signage and does this technology really work?

Digital signage - short definition for explanation

Digital Signage, to German "digital signage"are digital adverts that are managed remotely and appeal to customers with professional images, videos and text. The content, also known as "content", is fed in and updated manually via USB or automatically using a programme. A distinction is made between two categories: Digital signage at the POI, such as digital display boards at railway stations or airports, and digital signage at the POS. The latter systems are mainly used in marketing for advertising content or to promote sales in stationary retail. This gives companies the opportunity to effectively and quickly transmit customised messages to different locations at the same time in order to inform and entertain their customers or promote their products.

Definition of digital signage: Example digital advertising with handbags

The advantages - digital signage is:

Effective

Every day we are confronted with over 10,000 advertising messages. Digital signage is a promising way to emphasise your own product in the forest of offers. People can remember moving images for longer, they attract more attention as well as longer interaction and the customer is encouraged to buy. Digital signage can also serve as an eye-catcher in shop windows or outside after closing time and improve the presentation of goods. Showcase your products with digital signage!

Promoting sales

Digital signage makes individual products stand out from the crowd. 74 per cent of respondents in a study by FAW come into contact with digital advertising media several times a week, and 58 per cent of all respondents are intrigued or even encouraged to buy by the advertising.[1] Digital signage can be used to positively influence the customer's attitude towards the brand and make the message more vivid through videos. Recognition value increases - and so do sales figures. The Society for Consumer Research was able to prove an increase of 16 to 24 per cent due to the use of digital signage in supermarkets, while a Nielsen consumer survey even showed an increase in sales of 33 per cent for advertised branded products[2].

Cost-saving

With conventional, static advertising using billboards and posters, there are ongoing costs for printing, replacing and disposing of the old advertising messages. The situation is different with digital signage: in addition to the one-off purchase fee for the hardware (e.g. screens), changed content can be imported electronically at no additional cost. There is also no need for employees to print out and distribute advertising information. Instead, they can concentrate fully on providing advice and sales.

Especially

Use digital signage to stand out from the competition, attract new customers and improve your service. The modern digital appearance is a unique selling point that ensures your shopping centre is no longer perceived as interchangeable. This generally increases customer loyalty and therefore sales: 74 percent of Generation Z respondents participating in a loyalty programme would be more likely to remain loyal to the programme with this digital form of communication, 35 percent would even actively recommend it to others[3].

Simple

Different media offer concepts for images and text, sound and video or animations. Nevertheless, the effort is manageable and easy to understand even for beginners, because with our PRESTIGEenterprise software you can create centralised templates that give your content a uniform framework, correspond to your corporate design and ensure that no important information is missing from your advertising messages - and all of this is completely automatic. This allows you to edit your content easily and in a variety of ways.

Current

The content of the screens can be changed every second and adapted to changing influencing factors such as the time of day, weather or competitor situation. For example, it is possible to display different advertising content depending on the age group making the purchase. In conjunction with software that recognises emotions from the facial expression of the viewer, it is even possible to react to the customer's mood with the advertising content. Geographical customisation can also be implemented depending on location and customers can be entertained with local information.

Precise target group

Using face tracking, content can be individually tailored to different age groups. Representatives of Generation Z in particular are especially open to the topic of personalisation in the retail sector: with 48 percent in favour, the young target group (18 to 29 years) in Germany shows a significantly higher affinity for personalised offers and forms of advertising compared to the average (35.3 percent)[4].

Interactive

Using digital kiosks and LED touchscreens, customers can playfully access information, react directly to the content and thus stay in the shop longer. But as a retailer, you can also interact with customers the other way round, greet them at the entrance, say goodbye to them and use these services to ensure long-term customer loyalty and short-term sales success.

Entertaining

The installation of digital signage can offer an exciting combination of information and entertainment, particularly in typical waiting areas such as the checkout zone, changing rooms, escalators and lifts, as well as at the fresh food counter. This infotainment makes waiting more interesting and the customer is generally more receptive to longer advertising messages.

Sustainable

Waste can be avoided by using multiple electronic displays. The digital advertising media are simply loaded with the new content. Thanks to modern technology, old posters and labels no longer need to be thrown away.

What is the best digital signage strategy for your project?

Impact and significance of digital signage: example with animal welfare video

Discover our solutions:

All you need to set up digital advertising is the right hardware and software. Using a suitable interface, the displays receive data that is transmitted from the merchandise management system to the device. Our digital signage software solutions from PRESTIGEenterprise offer the following concepts:

  • Instore TV: Entertain your customers and shorten the waiting time.
  • Video walls: Advertise on video walls that can be several storeys high.
  • Digital shelf: Integrate your online shop into bricks-and-mortar retail.
  • Double-screen scales: pass on product and advertising information directly to consumers at the POS.
  • Advertising on checkout screens: Promote promotions and keep customers coming back for more.
  • Touch kiosk solutions and customer guidance systems: Provide interactive navigation information systems that make it easier for customers to search for products.
  • Multimedia advertising steles: Provide your customers with information about offers, events and services.
  • Electronic Shelf Labels: Update prices and item information on digital shelf labels at the touch of a button.
  • Tierwohl.tv: Strengthen your customers' trust in regional products and promote an understanding of fair prices.
  • Digital notice board: Post jobs, inform customers or employees about important news and send messages to your entire team.
  • Returning empties: Share your involvement in regional or social issues, give ideas for upcoming purchases or reduce complaints due to incorrect service.

The importance of digital signage in the future

In retail, the use of Digital signage is becoming increasingly important and the need for digital solutions is growing. The total market for digital signage was estimated at USD 20.82 billion in 2019 and is expected to reach USD 29.63 billion by 2024.[5] The vast majority of retailers (94%) use digital signage to improve customer service.[6] Go with the trend, digitise your advertising media and use digital signage for your omnichannel management. Entering the new dimensions of digital in-store retail marketing will enrich you. Take the first step in your development towards digitalisation with us.

Do you have any questions? Get in touch with us, take part in one of our webinars on digital signage or find out about other examples of in-store communication on our reference page. We look forward to your project!

Sources:
1 Source: https://www.stroeer.de/fileadmin/user_upload/Trendanalyse-DOOH-2019-Charts.pdf
2 Source: https://www.signamedia.de/wp-content/uploads/2016/04/Samsung_Digital_Signage_Whitepaper.pdf
3 Source: https://loyalty.ingenico.de/personalisierung-generation-z/
4 Source: https://loyalty.ingenico.de/personalisierung-generation-z/
5 From: https://www.marketsandmarkets.com/PressReleases/digital-signage.asp
6 From: https://futurestores.wbresearch.com/blog/customer-facing-digital-signage-market-in-retail-through-2021

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+49 6221 40508-0

info@online-software-ag.de