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The Power of In-Store Digital Signage: Driving Sales & Brand Engagement

Harry Smith

Harry Smith

The moment a consumer enters a retail store, they embark on a journey shaped increasingly by digital touchpoints. Within this landscape, digital screens positioned at critical decision-making junctures have emerged as one of the most potent tools for brand storytelling and driving purchase intent. Unlike traditional out-of-home advertising that captures attention in transit, in-store digital signage operates at the precise moment when consumers are primed to buy—transforming passive viewers into active participants in the brand narrative.

The effectiveness of this medium is now backed by substantial evidence. Research spanning 237 advertising campaigns and 30 million shoppers found that digital signage increases the likelihood of purchasing featured products by 8.1%. More impressively, when compared to static in-store displays, digital formats consistently outperform their predecessors. Digital proximity displays achieved a 20.8% SKU sales lift compared to 13.2% for static versions, while digital gondola ends delivered 11.9% SKU lift against 10.0% for static counterparts. These aren’t marginal improvements—they represent a fundamental shift in how consumers engage with brand messaging at the point of sale.

What distinguishes digital screens from static alternatives is their capacity for dynamic storytelling. Digital content possesses the ability to break through retail clutter in ways that static media cannot. The medium allows brands to deploy more compelling creative assets, eye-catching visuals, and real-time messaging that captures shoppers’ attention precisely when they’re most receptive. This dynamic quality translates directly into consumer perception. Seventy-one percent of consumers feel that advertising on digital signage stands out more compared to online ads, while 8 out of 10 customers have entered a store because a digital sign caught their interest.

The impact extends beyond immediate purchase decisions. A critical distinction separates digital signage from price promotions: while promotions may incentivize purchase through discounting, digital signage drives incremental consumption without causing purchase acceleration. This means that exposure to digital screens boosts sales not only for featured products but also for other items from the same brand and category. The result is genuine demand creation rather than mere sales displacement—a meaningful distinction for brands seeking sustainable revenue growth.

Consumer engagement metrics reinforce this narrative. Three out of five consumers noticed place-based ads in the past month, and 70% immediately visited a retail location after seeing place-based advertising. Additionally, nearly a quarter of viewers decide to make unplanned purchases based on items promoted through retail digital signage. These behavioral responses indicate that digital screens successfully bridge the gap between brand messaging and consumer action.

The business case for retailers has become equally compelling. By selling advertising space on digital signage, retailers achieve profit margins reaching as high as 90%, creating a new revenue stream that complements traditional retail operations. Eighty percent of businesses reported substantial sales increases after deploying digital signage, demonstrating that this isn’t a zero-sum proposition where retailers sacrifice shopper experience for ad revenue. Instead, well-executed digital advertising enhances the shopping environment while generating new income.

From a brand perspective, the strategic positioning of digital screens within retail environments offers unprecedented opportunity for narrative control. Unlike digital channels where algorithm and platform dictate reach, in-store screens deliver messages at the moment of maximum receptivity. This temporal advantage—combined with first-party shopper data increasingly embedded within retail media networks—enables brands to craft personalized storytelling experiences that resonate with specific consumer segments.

As the digital out-of-home advertising market continues its expansion, the distinction between brand building and direct response becomes less relevant. In-store digital screens accomplish both simultaneously, creating awareness while driving immediate purchase consideration. For brands willing to move beyond traditional broadcast advertising, these screens represent not merely another media channel but rather a redefined relationship with consumers at their most engaged and decisive moments.

For brands and retailers looking to fully leverage this powerful medium, precise measurement and strategic execution are paramount to harnessing its full potential. Platforms like Blindspot empower advertisers to navigate this evolving landscape by providing robust ROI measurement and attribution tools, real-time campaign performance tracking, and audience analytics, ensuring every in-store digital impression translates into demonstrable business impact and optimized demand creation. Learn more about harnessing the full potential of in-store digital advertising at https://seeblindspot.com/