Digital signage is transforming the retail experience by providing dynamic, real-time content that engages shoppers at the point of purchase.
In our customers’ stores, digital signage increases sales by 22% on average—and as much as 95% for items that are often overlooked. A study by Point of Purchase Advertising International (POPAI) revealed that 88% of shoppers make unplanned purchases because of an in-store sign. Additionally, digital signage advertising boasts an impressive 83% recall rate, nearly twice that of traditional advertising.
For retailers, choosing the right digital signage provider is critical to maximizing return on investment. Below are five essential factors to consider:
1. CAPEX and Cost
Cost is often a significant concern for retailers. Fortunately, screen technology has advanced to the point where high-quality TVs and tablets—capable of lasting for years—are available for under $100. Most off-the-shelf screens perform just as well as screens marketed for commercial use nowadays. The fundamental LED technology is the same across most screens and can provide bright, reliable signage year-round. Look for a provider that can leverage these affordable options to minimize upfront capital expenditures (CAPEX) and maximize ROI.
Many providers can absorb up front costs, especially when hardware costs are minimized so inquire about this when you're considering CapEx investment.
2. Power
Anything digital requires power, but not all power solutions are created equal. Seek a provider that uses low-voltage screens powered by cabling such as USB. Low-voltage cabling can be run over long distances and require minimal installation time.
3. Off-The-Shelf Hardware
Avoid vendor lock-in by choosing a provider that can use standard, off-the-shelf screens instead of custom-designed hardware. Leading manufacturers like Samsung and LG produce highly reliable, cost-effective screens, giving retailers flexibility and reducing the risks associated with proprietary hardware. .
4. Retail-Specific Content Management System (CMS)
Not all CMS platforms are created equal. Many generic digital signage solutions rely on simple, looping playlists, which may work for digital out-of-home (DOOH) advertising but fall short in a dynamic retail setting.
A retail-specific CMS should:
- Target specific store locations based on shopper interest and product context.
- Simplify content updates, enabling quick reactions to changes in inventory, promotions, or shopper behavior.
5. Measurement Capabilities
Accurate measurement is crucial for evaluating the effectiveness of your digital signage strategy. Many generic CMS platforms offer minimal insights into shopper engagement and behavior, making it impossible to gauge real ROI. Instead, look for a provider that delivers:
- Real-time analytics on views and coupon scans.
- Detailed sales impact data that shows how signage influences shopper behavior and drives purchases.
6. Advertising Capabilities for SMBs
For local and medium-sized brands, standing out in a crowded marketplace is a constant challenge. In-store digital signage offers a unique advantage, allowing brands to place targeted messaging directly in front of shoppers at the moment of decision-making. Traditional trade marketing often involves manual labor and significant expense, but digital signage simplifies the process. Brands can:
- Purchase advertising time flexibly (by the hour, day, or week).
- Reach highly targeted, local audiences in specific store locations.
In fact, in-store tests show that digital signage can outperform online platforms like Google and Instagram by 85% in terms of sales results for SMB brands. With hyper-local campaigns, digital signage becomes a powerful tool for local marketing. For retailers, this can also become a lucrative revenue stream.
To maximize your signage ROI, choose a CMS provider that can sell screen time to the brands you carry—ideally via automated, scalable methods—so you don’t have to worry about manually managing ad sales. Automated auction systems, similar to those used by online platforms like Google and Facebook, allow brands to bid for screen time based on how much they value reaching your specific in-store audience. This approach ensures your shoppers see relevant, helpful content at the exact moment they’re considering a purchase, while brands pay top dollar for highly effective placements.
It’s truly a win-win for all parties—especially your bottom line.
Conclusion
Choosing the right digital signage provider can significantly impact a retailer’s in-store marketing success. By prioritizing low CAPEX, hardware interoperability, robust measurement tools, and advertising opportunities for SMBs, retailers can maximize both shopper engagement and sales performance.
At AdSprout, our mission is to enable retailers to compete with the larger chains that are increasingly relying on in-store media profits. (In Q4 2024, for example, Walmart announced that in-store advertising now accounts for one-third of its operating profit.) We accomplish this by using off-the-shelf, low-cost, low-voltage screens that require no special installations—just long-distance, safe USB cables. We pair this hardware with a powerful CMS built from the ground up for retailers, allowing your brands to automatically buy screen time through an automated auction system. This means they can extend their marketing campaigns directly into your stores, paying you top dollar for reaching the most valuable audience possible, while you continue to use the system free of charge.
Related Resource: Effectiveness of Retail Signage