Leveraging Digital Signage for Hyper-Targeted Marketing

When it debuted 20 years ago, the science-fiction thriller “Minority Report” offered an imaginative take on the future of advertising. As detective John Anderton, played by Tom Cruise, strolls past a corridor of billboards, one calls out to him: “John Anderton! You could use a Guinness right about now!” Later, he steps into a department store and is immediately greeted by a holographic attendant: “Welcome back to the Gap! How did those assorted tank tops work out for you?”

Although the story is set in 2054, those personalized ads no longer seem futuristic. The continued evolution of technologies such as wireless beacons, geofencing, location-based analytics and data integration, coupled with digital signage solutions, has made such hyper-targeted advertising a present-day reality.

The Personal Touch

According to an Accenture study, 91 percent of consumers say they are more encouraged to purchase when a brand personalizes its communications with them. That’s largely because personalized ads cut through the growing clutter of online, print and broadcast marketing.

Digital marketing experts claim that most people are exposed to around 4,000 to 10,000 advertisements daily. This relentless messaging often results in consumers ignoring ads, either consciously or unconsciously. Researchers say nearly 9 out of 10 people simply tune out most of the ads they see, a phenomenon known as advertising blindness.

The Digital Signage Connection

Digital signage is increasingly the medium of choice for delivering hyper-targeted ads. When integrated with beacons and analytics, signage solutions can collect and analyze a wealth of data from consumers’ mobile phones, enabling companies to deliver very specific messages and offers as customers walk through the store.

The benefits go both ways. Customers can pair their phones with signage for a more interactive experience. For example, they download coupons, log in to rewards programs, search for products and access information about price, availability and other details.

Beacon technology is key to enabling communication between digital signage platforms and individual mobile devices. Beacons are small, wireless devices that repeatedly send signals to nearby smart devices, making location-based searches more accurate. This allows retailers to understand traffic patterns to ensure optimal placement of signs and to create relevant messaging for specific shoppers.

Location, Location, Location

Location analytics deliver additional insight into customer behaviors. Analyzing location-specific data generated by smartphones, GPS signals and cell towers, brands can identify customer shopping patterns, trends and dwell times. This data can be used to trigger ads for specific items when the shopper nears those products in the store.

Location data is also used for geofencing marketing campaigns. Using GPS coordinates, stores can set up a virtual boundary around a location and trigger ads, coupons, texts, emails or other outreach actions when a mobile device enters the geofenced area.

Whole Foods recently implemented a geofencing campaign by creating virtual perimeters around several of its stores — as well as a few of its competitors. Mobile users approaching any of these stores received targeted ads and discount offers. The campaign yielded Whole Foods a 4.69 percent post-click conversion rate, which is more than triple the national average of 1.43 percent.

Enhancing the Value of Digital Signage

With the ability to display dynamic and visually appealing messages, digital signage has become a vastly superior alternative to traditional print displays such as signs, posters and billboards. The addition of beacon technology and location-based analytics creates smarter signage solutions that enable more personalized interactions with specific customers.

Hyper-targeted marketing is no longer just a science-fiction trope. SageNet’s digital signage team can show you how to upgrade your signage platform to enable hyper-targeting right now. Contact us to set up a consultation.