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Smart Report / March - April 2005

Case Studies & Testimonials


Point of Sales
Display Networks in Shopping Malls by Utram
Advertising in Pharmacy by Futuramedia
Promoting New Products
Case Study: 7-Eleven, Evaluating ROI
Case Study: Galeria Inno, when First Impressions Count
Case Study: T-Mobile, Digital Signage in Croatia
Case Study: Dialect, Narrowcasting perfected...
Case Study: "La Grande Récré", a TV for children in shops

Public Transportation
Case Study: Eurolines, Real Time Communication CCI Nice Riviera Airport, Static Display and Dynamic Signage
Case Study: Dubaï Airport

Internal Communication
Messier-Bugatti
Case Study: Bobst, Rest Spot Info
Case Study: Sanofi-Aventis, Internal Communication all around

Public Information Entertainment
Case Study: South Bank Center, an Artistic Approach Casinos & Display, a Winning Bet
Case Study: Warner Bros., Digital Signage allows customers to better organize their visits
Case Study: Westgate Resorts, guests stay updated

Arbitron Case Study
Based on telephone interviews with 1,002 US consumers (all over the age of 18)
>> Source

> 32% of shoppers reported making an unplanned purchase after seeing a product on a retail digital sign.
> 1 in 10 shoppers make a habit of stopping to watch retail video.
> 88% higher consumer recollection with Digital Display ad.
> 111% higher consumer intent to purchase items.


WAL-MART Case Study

TNS's 2005 study (TNS is the world's largest custom research company) was conducted with over 5,500 Wal-Mart shoppers.

> The average recall of a brand advertised on a digital sign is 66%, compared with 24% for brands advertised on in-home television.
> 57% increase ad recall with Digital Display.
> Ads get more attention and are more effectively delivered in a retail environment where people are predisposed to buy.
> Customers are 53% more likely to agree with positive statements about brands viewed on a digital sign vs. customers who did not see those same advertisements.
> Customers viewing a digital sign are four times more likely to purchase the advertised product “today.”


COMPUSA Example

CompUSA attempted to isolate the "placebo" effect of simply having the screens in place and showing generic content, versus having the screens running with relevant ad content. Unlike many other reports, where stores with screens running ads were compared to stores that didn't have any screens, every store in this study was equipped with the screens. The only difference was the content displayed on them. Given the large number of plasma screens, LCDs and computer monitors that the typical CompUSA has on display, it could be that a few extra digital signs woudln't have any significant impact on consumer behavior. However, without taking this extra step, it would be impossible to know for sure. Additionally, they set up an extra 43 stores to display the same content (including advertisements) on the wall of computer monitors typically found at the back of the stores, but without any additional digital signage screens. This further isolates the effect (if any) of having the additional dedicated screens in the stores.

> In a CompUSA 90-day trial, test stores equipped with digital signage outsold control stores by 29%.
> All sponsors for the test saw increases during the first 30-day period that the ads were run.
> Every month, the test stores (those showing the ads on digital signs) outsold the control stores (those with generic content on their digital signs, or those without the digital signs at all).
> Advertisers who purchased the most time on the network saw the greatest sales lift.
> Employee brand awareness increased 23%.


PIER 1 Example
A branch manager had requested content to promote a poorly-selling line of inexpensive tableware. The product was relatively undifferentiated from some name-brand alternatives, which were selling well (at higher prices but lower net margin for the retailer). The project team responded with two new 15-second content segments advertising the product and noting its price, availability, and relative location within the store. Over the next month, sales of the product were tracked, and afterwards compared against another store which had the digital signage network, but did not carry the ads for the tableware.  The result: the store showing the ads had an over 500% increase in sales of the advertised product.  Most of this was cannibalistic (in other words, sales of this line of tableware came at the expense of other similar products), however there was an overall uptick in sales for that category (it was much smaller, around 6-8%). From the retailer's perspective, they had accomplished two key goals: selling more of their high-margin, private labeled brand, and growing the aggregate size of the segment.  Of course, this was partially at the expense of the other (non-private label) supplier, whose sales were reduced in the process.

> In a Pier 1 30-day trial, stores advertising a poorly selling line of tableware on their digital signage network outsold control stores by 500%!


Federated Department Store Case Study

> 10% increase on average sales at Macy’s locations with Digital Displays.


Electrograph Case Study

> 34% sales increase of items on Digital Display in retail stores.
> 20% sales increase by tailoring in-store plasma digital display to different demographics depending on the time of day.


CHARLIE BROWN’S Case Study

> 30% sales increase of all items featured on Digital Ad.


IBM Test Study for a Major U.S. Restaurant Chain
A major U.S. restaurant chain tested the dynamic digital merchandising solution for retail from IBM to entice customers to try new offerings. The result—significant improvements in sales and customer satisfaction.
>> Source

> Average purchases increased 10%.
> Annual sales increased 31%.
> Soft drink sales increased over 20%.
> Dessert sales increased 8%.
> Credit card usage increased over 30%.
> Food cost reduced, due to better menu management.
> Customers were up to ten times more likely to observe the dynamic media than the static.


IPSOS MEDIA Study for Future Media in Pharmacies

> The memorization rate for a dynamic image is 48% compared to 11% for a static image.
> 73% of survey participants preferred advertising on screens to paper display.


SLUMBERJACK Case Study
One of the smaller vendors at Bass Pro Shops/Outdoor World is Slumberjack, a manufacturer of high-end sleeping bags and hiking equipment. After Bass Pro installed their digital signage network, Slumberjack purchased advertising time and put together a simple 15-second segment ending with a call to action directed at customers on the shop floor. The experiment took place for a three month period.

> After purchasing advertising time in a Bass Pro store, sales improved by 59% across their entire line, with some items seeing a 195% increase.

7-ELEVEN Case Study
The convenience chain 7-Eleven has set the benchmark for evaluating the sales impact of digital signage in its 46 stores in Denmark. Having installed Sony 42” plasma screens showing adverts for the stores’ products, as well as a Sony Network Player that plays out the content on the screens, 7-Eleven has measured the sales increase on advertised goods.

> An average increase of 30% in turnover.
> Coffee sales rose by 30%.
> Advertising for an energy drink increased sales by 32%.
> Advertising for a new soft drink augmented sales by 109%.
> Danish pastry sales rose by 59%.
> An impressive jump of 319% in the sales of a new phone card.
     
 
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