Exploring Your Options: LED Signage, Pt. 2
At Signsational Graphics, we believe in Watchfire Signs and their LED Signage solutions. The following is an article written by Dave Warns of Watchfire Signs on the benefits of LED signage, and where to find room in your budget for one.
Decline of Traditional Advertising Mediums
Not yet convinced that you should reallocate some of your advertising budget? As you consider where your advertising dollars should go, it is important to understand how the effectiveness of television, radio and newspaper is changing. Let us look at the recent history of the three prominent advertising mediums.
Television– The advent of DVR (digital video recording) and subscription video services, like Netflix and Hulu, have dramatically affected television-viewing habits. Companies certainly have not stopped advertising on television, but it is becoming a less and less effective medium. Those who do use TV advertising are often forced to buy TV ad spots spread across wide geographic areas, leaving companies paying big bucks to advertise to people so far from their location that they are unlikely to become customers. Here are a few telling statistics:
- 52 percent of American households have a DVR (Leichtman Research Group, 2012), compared with 13.5 percent of households just five years ago (Nielsen, 2007).
- 86 percent of viewers skip commercials when watching television (YouGov for Deloitte, 2010).
- One in every four U.S. households has Netflix, a commercial-free streaming video service, (Frank N. Magid Associates, 2013).
- Americans between the ages of 12-34 watched less TV during Q4 2012 than they did in Q4 2011 (Nielsen, 2013).
Radio– Radio listenership has been in decline for years. Satellite radio, services like Pandora and MP3 devices have had a significant impact on the radio industry and radio advertising. Here is a look at where radio listeners have gone:
- 52 percent of adults use their car stereo system to listen to music on their iPod, iPhone or other MP3 device (MarketSource, 2011).
- In 2012, Pandora registered users increased to 150 million, a 50 percent increase over its 100 million users in 2011. (Pew Research Center, 2013).
Newspaper– The decline of newspapers and newspaper advertising is certainly no secret. The industry has been struggling for years to make up for the dramatic decrease in print subscribers.
- In 2012, print advertising fell by $1.8 billion, an 8.5 percent drop from 2011, dropping for the sixth consecutive year (Pew Research Center, 2013).
- Some newspapers, like the New Orleans Times-Picayune and the Cleveland Plain Dealer, have been forced to shift from daily printing to a three-day-a-week publication just to stay in business.
A Return on Your Investment
If you invest in an LED sign as a powerful advertising tool, you will undoubtedly reap the rewards. According to the SBA, small businesses enhancing their signage with an LED sign typically see an increase in business of at least 15 percent. These numbers are consistent with what we have seen in the industry. Every day we speak with customers who have seen incredible results from their LED sign investment-new customers, an increase in foot traffic, dramatic increases in sales and greater recognition in the community. The ROI they see from their LED sign investment helps these companies grow and expand their business, opening new locations and expanding their footprints. As they plan for these new locations, many tell us they consider an LED sign at their new location an absolute necessity.
If you are looking to boost your business with an LED sign from Watchfire Signs, give us a call at 651 633-2233. We are ready and waiting help you find the best solution for your own business.