Recently, we explored digital signage in the context of how it is used to support a company brand. In that type of project, ROI is extremely difficult to calculate because there are no revenue streams that are directly attached to it. The content is developed to expose viewers, even subconsciously, to the brand, building their awareness of it in the process.



Today, we'll switch gears slightly and address a similar, but different, initiative. I'll describe how digital signage is deployed in a private labeling capacity. It is similar to a brand-building project in that it is used by businesses which only carry their own line of products. However, rather than being deployed merely to support a company's brand, the network is used to promote product lines and lift sales volume.

Who Contributes To The Project?

You might remember that a branding initiative is typically controlled internally. The initial deployment (installation of the screens and media players) may be handled by an outside company, but most other tasks are handled in-house.

A private labeling signage network is similar in that most decisions are made by the store's senior management. Once they have determined their goals, they will normally give the reins to their marketing staff. The difference is that content must be created in order to promote products, a skill which the marketing team may lack. If that's the case, the company will often turn to an outside source for help.

Store Advantages

Two key advantages of this type of digital signage project is that it can generate sales and support existing promotional campaigns. In a private labeling initiative, the screens can be customized to promote specific products in their immediate vicinity. What's more, they can be tailored to spark recognition in viewers who have seen the store's advertising campaigns on television, in newspapers, or magazines.

For example, consider the clothing store Banana Republic. They exclusively sell their own line of clothes. Suppose they are currently advertising a specific promotion in local newspapers and on television. When a shopper visits the store, the signage network can instantly create a connection by using visual elements (icons, colors, etc.) from the "traditional" media advertising campaign. As that shopper ventures deeper into the store, individual screens can display content which promotes the clothing items nearby.

Potential Drawbacks

A signage network deployed by a private label retailer runs into the same problem as that used for branding purposes. There must be an ongoing content development effort. Too often, management, after making the decision to invest in the project, loses faith in it. That may happen as a result of poor communication from the marketing team or the substantial time required to deliver quantifiable results.

Whatever the cause, if management pulls the plug on the project or decides to limit funding, the first area to suffer is usually content. Unfortunately, without the ongoing development of creative promotional content, the network is doomed. It cannot effectively support media advertising campaigns. Nor can it motivate repeat visitors (who have already seen the content multiple times) to purchase items.

So, how can this be avoided? First, a retailer's senior management must be willing to invest in the private labeling signage network knowing it may take time to see results. Second, the retailer's marketing team must openly communicate their efforts (including testing content segments, screen positions, etc.) and results to management. With expectations properly set, the signage network can become an effective promotional channel for the retailer. And by lifting sales, it can eventually deliver a positive ROI.