As technology advances, the effectiveness of older advertising has been in decline. One area, that of digital signage, is replacing legacy methods because of the excellent benefits and higher ROI (return on investment).
Digital signage for enterprise from providers like Kitcast, work in real time making it more effective than static billboards , flyers, press ads and posters. This guide compares traditional advertising with digital signage so you can decide if it’s right for your business.
What is ROI for Advertising?
Return on investment (ROI) is a common financial metric used in all sectors. The ratio measures the profitability of an investment by comparing its gain or loss to its cost
For advertising, It divides the net profit from an advertisement or marketing activity by the cost of the campaign. A higher ROI means the advertisement was effective. A lower ROI means the opposite.
Knowing how traditional advertising and digital signage advertising influences consumers is important. That way you can decide which method is most useful for your purposes.
ROI of Digital Signage
Digital signs are electronic and display content, including promotions and advertisements. They can also showcase any other relevant messaging. Forbes highlights the ability to turn an Apple TV into digital signage with ease. That’s just one example of what makes it such an attractive marketing solution. Here are some other ways that it’s better than traditional advertising.
- Adaptable content: digital signs can be modified instantly. Traditional advertisements would need to be reprinted, taking time and money. Digital signs can be customized immediately, based on season, time of day, target audience, etc.
- Cost efficient: After the initial investment, digital signs save money and resources. You’ll save on printing costs and labor.
- Personalization: digital signs are easily changed, so you can customize them. Gathering data also allows you to personalize content. Using demographics lets you target a specific group of buyers.
- Increases engagement: animations, videos and interactive content increases engagement from customers. Encouraging a purchase or inviting feedback enhances this effect.
- Easy to measure: using the analytics tools for your digital signs makes it easy to track impressions and consumer behavior. That insight lets you create a well thought out marketing plan.
ROI of Traditional Advertising
Radio, television and printed ads are examples of traditional advertising. Billboards are another example. They have been reliable for years, but are slowly being replaced by digital signage. Here’s why.
- High cost: it’s costly to buy TV and radio spots. Printing flyers and posters requires large amounts of paper and ink. And they must be changed when your marketing campaign changes, adding to the cost.
- Less flexibility: while digital signs can be updated in real time, traditional advertising requires lead time. Changing print ads requires labor, time and money.
- Reduced engagement: modern buyers aren’t engaging as much with traditional advertisements. They prefer digital interactions, especially younger customers.
- Broader targeting: digital signs can be precise and targeted, while traditional advertising is broad. Digital signage can identify interested consumers and modify content accordingly.
- Hard to measure: there’s no real time feedback from billboards and paper flyers. Digital signage gathers data that allows for real time updates so advertisements are relevant.
Comparison Summary
| Factor | Digital Signage | Traditional Advertising |
| Cost Efficiency | High, after initial investment | Low, with many recurring costs |
| Analytics | Real time tracking | Limited |
| Engagement | Highly engaging | Limited |
| Targeting | Customized to target audience in real time | Broad and imprecise |
| Flexibility | Real time updates | Requires lots of lead time |
Why Digital Signage Scores High for ROI
Digital signage is very useful to many businesses. It combines cost efficiency with precise targeting and real time updates. That makes it beneficial for limiting advertising costs, compared to revenue from the campaign. It’s an easy way to get immediate results on marketing plans that offer measurable results. Many industries have already found success with digital signs. Some of them are listed here:
- Retail
- Transportation
- Healthcare
- Education
- Hospitality
- Corporate
- Finance
- Sporting
- Entertainment
- Real estate
- Government
- Restaurants
- Wellness and fitness
- Fashion
- Gaming
- Tourism and travel
- Beauty
-
Examples of Success
There are many examples of successful digital signage marketing campaigns. Let’s look at a couple of general cases:
- Retail: replacing paper flyers with digital signs increases engagement by 45 percent. That increases sales by 25 percent.
- Healthcare: digital signs help with check in and share wellness tips for patients. The result is reduced wait times and increased satisfaction.
- Hospitality: interactive digital screens in a hotel lets visitors choose amenities and book extras. Upselling results in a 30 percent increase in sales.
Summary
ROI is likely to stay good for digital signs into the future. The signs are easy to modify and drive engagement. Data and analytics give insight into effective campaigns. Brands can use this information to create targeted campaigns to achieve a better customer experience and higher sales. Traditional advertising may still have its value in certain industries, but more businesses are finding that digital signs offer a better ROI.
