Digital Signage Central

Many people and businesses are entering 2009 with a healthy dose of trepidation about what lies ahead –and with good reason.
Billions upon billions have been pumped into the financial system to keep banks afloat. The nation’s auto industry is on its knees, pleading for government loans. New and existing home sales are tanking. Foreclosures continue to rise. The number of people unemployed is mounting. The list goes on and on. No wonder many get that gnawing feeling in the pit of their stomachs when they consider what the new year will bring.

But before you hit the panic button, consider this: even in declining markets and times of economic contraction, opportunities exist to survive and thrive. While it’s beyond the scope of this space to discuss all of the ways a business might go about this, it does seem like a good time to reiterate that advertising, promotion and marketing are not luxuries that are easily dispensed when times get tough. Rather, they are essential components of surviving and even increasing market share while competitors succumb to a slowing economy.

Even in a severe recession, there is economic activity. People continue to buy and sell, albeit to a lesser degree than during an expansion. The question for business really is how to best spend limited marketing, promotional and advertising dollars to achieve the greatest return on investment. Note that during economic recession this question isn’t really much different than it is during an expansion. The difference lies in the added importance on answering the question in a way that reflects the realities of how consumers change their behavior in response to the tougher economic environment.
Over the past few years, digital signage has established itself as a viable alternative to traditional forms of advertising and promotion. Digital signage has distinguished itself as the only medium to offer dynamic messaging that reaches consumers when they are making purchasing decisions. During a recession, this presence at the point of sale along with three other advantages -immediacy, responsiveness and economy- make digital signage a critical tool to help businesses succeed.

When it comes to in-store immediacy, digital signage cannot be beat. Printed signs, banners and point-of-sale displays require relatively long production times. Add to that the time needed to coordinate special offers from suppliers with these sorts of promotional materials and the time from concept to fruition extends further. Digital signs, on the other hand, offer the ability to respond immediately with messaging appropriate to special offers, unexpected new merchandise that shows up on the loading dock and corporate decisions to offer sales on items that somehow don’t get communicated to sales floor managers. During a recession, the ability to respond immediately with appropriate messaging keeps managers and shopkeepers nimble, which can translate into sales that otherwise might be delayed and ultimately lost.

Such nimbleness is at the core of being responsive to changing conditions in the marketplace, allowing retailers to promote new pricing, new offers and new specials. But this responsiveness isn’t limited to these types of circumstances. Digital signs can also meet the individual consumer’s need for specific information by fulfilling a dual role as a digital sign and an interactive kiosk. For example, a digital sign playing back linear promotional content, can be interrupted with a simple touch or via a signal from a pressure-sensitive or photo-electric sensor to switch into an interactive mode, offering consumers a way to find the information they require and facilitate the sales process.

Finally, consider the economy digital signage brings to messaging. No one would argue that a flat panel display and digital signage controller costs less than a single printed sign. However, consider how many signs must be printed in a year in addition to the labor involved in replacing old signs with the new, and the economic equation begins to shift. In my experience, it is not uncommon for many organizations that frequently update their printed signs to reach a break-even point with their investment in digital signage within a year’s time.
So while 2009 promises to see the recession continue and potentially deepen, there can be a silver lining in these economic storm clouds for those individuals and business that can adapt and take advantage of opportunities when they are presented. One tool essential to doing so is improving the effectiveness of promotions, marketing messages and ads. Digital signage offers a powerful means to do just that.

By David Little of Digital Signage Insight