Digital Signage Works

Digital Signage. By definition this term means something as variable as putting information on a screen. This is accomplished through means such as inserting a flash card into a modern computer, attaching a computer and running a slideshow, or a full blown system that is managed through third party software and may even integrate with live television.

Digital Signage is often called by other names such as Kiosk, Digital Video, Marketing Board, or Digital Thingy. But the basic principles and purposes are the same — Communication.

The question most people ask is, does it work?

As a communication tool, when placed in the right location in your business, digital signage can relay information pertaining to specials, services and even broadcast important alerts in an emergency. And digital signage can help your business look modern and up to date without a large investment.

No matter what that all means, people still ask — does it work? And what they are referring to is money. Does it help me make money. A tangible ROI as opposed to an intrinsic ROI.

The answer is YES.

Subway did a test in the Los Angeles area in 500 locations in 2010 and announce today that the test was successful in selling more products and had created a positive customer experience.


Bob Grewal, SUBWAY® Franchisee and Development Agent for the Los Angeles area, states, “We have experienced rapid integration into our 500 restaurants. We are confident that the addition of digital signage will enable us to better communicate with our diverse customers and drive future growth.”

Dennis Clabby, IPC’s Vice President of Purchasing, commenting on the network’s growth, adds, “Subway’s goal is to continually increase the value of the franchisees’ investment in the restaurant and to help them successfully compete in the QSR industry. With digital signage, we are building a viable, cost-effective program to help our franchisees reach their customers with timely product and promotional messages that influence customer behavior at the counter and increase sales. Designed to increase store profitability, the strong positive response of the franchisees and the rapid growth of this program is very encouraging.”

Subway would not invest the capital needed to not only install the system at thousands of restaurants across the country, but also maintain the system through licensing agreements for the foreseeable future if there wasn’t a tangible and intangible ROI.

Digital Signage will help communicate with your existing customers in a non-pressure medium that has been proven to be effective.

Here are some more statistics about Digital Signage from the Digital Signage Expo 2012:

  • 70% of US residents aged 12 or older have seen a digital video display in a public venue in the past month
  • 52% recall seeing one in the past week (TV has a 32% recall rate, Magazines have a 21% recall rate)
  • 47% of those who have seen digital signage in the past 30 days specifically recall seeing the ad
  • 1 in 5 of those who have seen a digital ad say they made an unplanned purchase after seeing and item featured
  • Digital Signage, unlike ads online, cannot be blocked by software
  • 59% of people who came in contact with digital signage in multiple locations later wanted to learn more about the topic


Whether you are running a slideshow or full blown system, the impact of digital signage will vary. Mixing a variety of sources such as news and weather draws people’s attention to the system and creates value so it isn’t ignored. In most situations, content that is always selling, lacks value and loses the customer focus. Balance in content is key to the success of your investment.

Todd Katcher
Digital Dealership System
c: 615.669.5244
skype: sdm.todd
twitter: @digitaldealers


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