Know-How Exchange : Research/Metrics

Digital signage is just a special case of regular point-of-sale signage. The "digitalness" allows the message to be more easily changed and/or animated in some way.

The best way to test effectiveness is to have a three-way matched panel of stores. In A stores, put the digital signage. In B stores, put the same message/same offer but in non-digital form. In C stores, put nothing.

After a suitable period -- say 2-4 weeks -- read sales of the offered item in each group of stores. To the extent possible, make sure the three groups are well matched, in terms of demographics and average sales volume (in total and on the item you're using for the test promotion).

If you plan the test well -- on an item that typically responds well to in-store signage/promotion -- you'll have a pretty good reading on the effectiveness of the digital signage in the convenience stores.

Ideally you would have at least 5 or 6 stores in each group, for a total of 15-18 stores total. Be sure to read the average-week sales for the promoted item for the prior 12 weeks, so you have a basis for calculating any increases during the test period. And be sure there are no other significant variables that might bias results of your test.

CPM: Just count the traffic passing the sign and assume that xx% of that traffic actually sees the sign. Divide the cost by the traffic count (in thousands) and you'll have the CPM.

That, in my opinion, is a meaningless metric. What would you do with it?

Immediate response: You will have to measure sales versus baseline, or expected, sales. Very difficult to measure, because there are probably other variables, and calculating a baseline isn't always that straightforward.


What are you going to do with these metrics? I think you need to go back to the real objective and let's deal with that. WHY do you want to measure the effectiveness of digital signage in small convenience stores? What are you going to do with the results if/when you come up with some? Why would you want CPM, for example? Are you looking at this from the advertiser's point of view, or the retail management's point of view, or are you selling the digital signage to someone?