More Than Just a Pretty Facade—Signs Part 2

Signs are Effective

Your signage is an integral part of your advertising program along with the other forms of commercial communication such as television, radio, newspapers, magazines and billboards. There are four basic criteria used to judge the effectiveness of these advertising media:

  • coverage of the trade area;
  • repetition of a message;
  • readership of a message;
  • cost per thousand exposures of a message.

Let’s see how signs measure to the above criteria.

Signs are oriented to your trade area. Signs do not waste your resources by requiring you to pay for wasted advertising coverage. The people who see your sign are the people who live in your trade area.

Signs are always on the job repeating your message to potential customers. Your on-premise sign communicates to potential customers twenty-four hours a day, seven days a week, week after week, month after month, year after year. Every time people pass your business establishment they see your sign. The mere repetition of the message will help them remember your business.

Nearly everyone reads signs. Signs are practical to use because nearly everyone is used to looking at them and using them, even small children. Studies have shown that people do read and remember what is on signs. When special items are displayed, sales increase for these particular items within the store.

Signs are inexpensive. When compared to the cost of advertising in some other media, the on-premise sign is very inexpensive. Table 1 indicates the cost-per-thousand-exposures for various media in a given type of community. Unless your trade area encompasses an entire city or region, where you must rely upon broad based media coverage, there is no better advertising dollar value than your on-premises sign.

chart2

A number of surveys have been conducted before and after installing signage to determine effectiveness. One of these, from late 1996, involved a Los Angeles auto dealership. Three previous auto dealers had failed at the location. The new owner, Aztec Motors, spent much time, energy and money improving the building and lot.

Once renovations were complete, the new owner invested $7,400 in replacement signage that entailed one wall and one double-faced pole sign.

A survey found the new signage, not the renovations or other advertising, was responsible for a minimum of ten new walk-in customers per week, resulting in at least six additional sales per week.

It took less than a month for the new signs to pay for themselves, and the owner was able to reduce his advertising budget from $16,000 to $4,000 per month an annual savings of $144,000.


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