How Does Digital Signage Work?

how digital signage works
how digital signage works

When we talk about how digital signage works, people’s thoughts often turn to two uses- adverts and digital menu boards. That’s because they are the applications that many people see often. But, by constraining businesses to these limited digital signage uses, companies might not be maximizing the benefits of this technology. To avoid this, read on and learn more about how digital signage works, the many uses of this amazing tech, and when to update the signs to make them work more effectively.

Take a Look at How Does Digital Signage Works

Digital signage offers an excellent way to attract attention, advertise your brand, and get information to prospective customers. As a result, many enterprises are turning to digital signage to engage with clients on different platforms in today’s digital era.


Typically, here’s how digital signage works:

It Disseminates Information

Digital signage offers you a way to deliver all types of content to your target audience in a captivating way. The displaying content can be sale promotions, wayfinding information, or any events -anything you want to let your target audience know. You can include any visual aspects with your content, such as images, videos, and vivid animations. Whether you want to have display screens running at different locations or just have a stunning video wall at your entrance, you can certainly capture more attention than having static traditional signs. 


On top of that, you can also benefit from more information than simply what is on sale and how much a product cost. Digital signage solutions can be used to deliver strong branding messages during the entire customer’s purchasing journey. By establishing a clear branding image, you create a better branding reputation among the customers and raise customers’ loyalty towards your band. 

It Bridges Emotions

According to research by Antonio Damasio, a professor of Neuroscience at the University of Southern California, human emotion is crucial in decision making. The study showed that a person would rely on previous experiences to face situations and make current decisions. You will utilize the emotions for the past choices and create preferences. This process is so hard-wired into the brain that people who have damaged links between thinking and emotional sides of the brain (usually from a surgery) may be unable to make decisions. 


So, how does the world of neuroscience affect how digital signage works? Clients face a wide range of decisions to make at every location where companies deploy digital signage. The use of movement and the vibrancy of the digital signs will evoke an array of emotions. Moreover, the use of movement, vivid colors, and brightness often create a fascinating display that sets the viewer in the right emotional state to be open about trying new products. 

It Increases Visitors' Engagement

Today, the market is changing rapidly: Customers want premium goods and services at affordable prices with excellent customer experience. As a business owner, you need to adapt to the changing market and offer what your target customers are looking for in the market. That can be challenging to tackle and fulfill. That’s where digital signage comes in. With cloud-based digital signage systems, you will be able to make any prompt changes to your digital signage based on real-time data anywhere with an internet connection. This way, you can ensure your digital signage delivers the right message to the right people at the right time.


Let’s also not forget that digital signage is inherently appealing to look at. The bold colors, exciting light patterns, and screen layout offer a lovely and enjoyable view for passersby. Hence, you should consider all the aspects of your business that have grabbed your attention and put that on a digital display. That can make your customers feel engaged in whatever you display. For instance, you could challenge them with fun quizzes, make them laugh with funny videos, or enthrall them with a dazzling piece of art. 

Supermarket and Grocery Digital Signage Example

How Often Should You Update Digital Signage?

Digital signage has proven to be an efficient communication channel as it is captivating, and you can easily update it. The convenience that digital signage software offers is evident. Within a few clicks, digital signage management software allows a business can execute different marketing strategies tailored for various target audience groups. The business operation teams can also build digital signage networks covering multiple locations.


The common question business owners have is that they don’t know how frequently they should update their digital signage displays and the media players. Most people live by the saying, “if it ain’t broken, don’t fix it”; However, that is not the right concept. There is always a better solution that is more suitable for your business with less cost. It is essential to recognize that keeping your digital signages and software up-to-date will bring you more benefits than sticking with old solutions.


Let’s have a look at three crucial aspects of advertising and how they affect how digital signage works:

1. The Industry Aspect

Industry considerations are the aspects that influence the niche in which your firm or organization operates. Digital signage updates can vary based on whether you’re in the non-retail or retail niche. For instance:

The Restaurant Industry

In the restaurant business, updating signage is uncommon as it’s usually better to keep your menu boards consistent (unless you’re advertising limited-time offers or reviewing your prices). However, digital signage is essential since it builds familiarity, enabling the clients to identify with their preferences. That not only allows them to know they have chosen the correct order, but it also makes them feel at home in your restaurant.

The Ever-Changing Retail Industry

The retail industry is evolving continuously, and hence businesses need to evolve along with it and understand what the clients in the market want and need. For example, it might look odd and out of place if you’re still using signage you put up years ago. That’s mainly true if it was referring to a product that made sense at that time- let’s say a three-month sale for a particular pair of shoes that were fashionable years ago. Such a sign doesn’t stir any interest in today’s consumer market. And keep in mind that in retail, it’s all about what’s new and trending. 

Retail Seasonal Shopping

Ultimately, retailers should consider seasonal shopping. For example, during the Christmas festivities, retail stores often focus their adverts on the thousands of shoppers rushing in to buy gifts for their family and loved ones. On the other hand, adverts tend to hone in on the Thanksgiving bonanzas during Thanksgiving festivities. So, it can only make sense and be more effective if you update your signages according to these festivities. 

Non-Retail Businesses

Where non-retail enterprises or businesses are involved, digital signage is a whole different ballgame. A classic example is a law firm. Many clients are aware that law firms deal with legal matters, and as such, their signage is often more for internal communications. Keeping your signage consistent in a law firm can hardly influence your drive for new clients. What may change is the HR updates or news about the firm’s or its employee’s successes. For instance, when a lawyer at the firm wins a big case, or a new articling student is set to join the team.

Education Digital Signage Example

2. The Psychological Aspects

The human mind loves familiarizing with specific patterns. Hence, advertising strategists have explored and used this familiarity to influence people’s purchasing behavior. There are two psychological factors integrated into digital signages used to influence clients’ decisions in buying something. They are:


The Mere Exposure Effect

The mere exposure effect is a straightforward and common mental phenomenon that virtually everybody on the planet experiences. The effect implies that if you are exposed to something often, you could like it. For instance, when you listen to a particular song for the first time, you may not be interested in it; you might even hate it. But surprisingly, if you listen to it repeatedly, it will slowly start growing on you, and you might eventually find it irresistible.

Digital signage tends to work similarly. When a person passing by sees your signage repeatedly, they can gain interest and would like to know what your signage is all about. Thus, changing your digital signage, especially evergreen signage, too early sometimes could make it forgettable. 


The Rule of Three Marketing Principle

The mere exposure effect gave birth to the well-known “rule of three” marketing principle. The rule, which Dr. Herbert Krugman wrote in the 1970s, summarizes the impacts of advertising into three fundamental thought processes. The processes are still applicable today. 


According to Krugman, you should ensure that your advert is viewed at least three times by a client before you take it down. That’s because (according to the Krugman principle) the first time a consumer sees the signage, they’ll ask themselves: “What’s this?” In this first exposure, the client’s brain is trying to simply process what they have just seen. During the second exposure, the client now starts to analyze the business signage on a deeper level- “What’s this all about as I remember seeing it before?” By the third exposure, the consumer has fully understood the message. 


As such, the consumer may have even decided to buy the advertised product even before walking into your business. Note, however, that the third exposure is also the tipping point where the client starts losing interest. That means if the targeted clients have viewed your signage at least 4-5 times without taking any action, then it could be imperatively beneficial to update your signage. 


Heuristics Effects

Heuristics refer to the ability of a person to decide based on immediate desires without worrying about the consequences. For instance, many people often make an impulsive purchase when they see an ad about a specific product. So, ideally, that’s what good signage should do. 


This is usually because a person’s brain tends to look for mental shortcuts to conserve energy and time. The brain is simply trying to make things easier for you. As such, the mere act of seeing the digital signage (even when viewed on the subconscious level) could prompt you to buy a specific product after months down the line. However, this can only be possible if your digital signage makes a mental imprint on the client. Thus, businesses should strive to design very appealing signage and leave it running even for over six months. 

how auto digital signage works

3. The Financial Aspect

It’s undeniable that money plays a fundamental role in advertising. Hence, one of the drawbacks of updating or replacing digital signage is that it can prove to be too expensive, particularly for small businesses. Searching for a brand-new design can also be too costly. A total redesign will be pricey due to the high costs of labor and creative input. But if the design is only focusing on a few adjustments, it may be within a small budget. 


However, the financial aspect should not deter you from updating your digital signage. Keep in mind that a new design may be what your business requires to improve its customer reach. But unfortunately, it might have to take money to make money for your company. 


Typically, it’s recommended that you ensure that you have surplus cash within your budget to cater to any expenses that could arise when updating your signage. Also, ensure that you choose quality signage compared to the cheaper alternatives as quality adverts will have a better engagement with your targeted clients. 


Digital Signage is a powerful tool for all industries to deliver any messages target audience effectively and efficiently. Research has shown that digital displays capture 400% more view than static displays and that 80% of brands that use digital signage achieved a significant raise in sales by up to 33%. The impact and benefits of digital signage cannot be overlooked. It is important to consider the industry, the psychological, and financial aspects when it comes to deciding how digital signage works for you. Once you figure out how digital signage works and how it applies to you, then you are ready to start your digital signage journey and bring your business to the next level.

You can learn more about NexSigns Digital Signage solution and connect with us on FacebookLinkedInTwitter, and YouTube to get the latest info on digital signage!

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