How do you calculate ROI on in-store digital signage?
ROI on in-store digital signage is calculated by connecting exposure and engagement metrics from the screens to actual point-of-sale data, then comparing year-on-year changes to isolate campaign contribution 1. The 2024 DOOH & In-Store Retail Media Playbook sets out this integration of engagement metrics with sales data as the route to a comprehensive view of campaign effectiveness, whatever the format 1.
The inputs to collect
- In-store traffic, counted at the total store, entrance, near screens, shelves, aisles and check-out, which gives the exposure denominator 1.
- Visual engagement KPIs such as attention time, glances and distance, captured with anonymous video analytics sensors and product pickup sensors 1.
- Sales outcomes from post-campaign analysis, including in-store purchase frequency, onsite search and attributable sales 1.
- Brand outcomes such as awareness, consideration, favorability and purchase intent, gathered through surveys, digital interactions and purchase patterns 1.
Widening the calculation
Look past the advertised product to the total category, share and source of share, so the ROI figure accounts for cannibalization, new shoppers and trade up or down 1. Accuracy of the underlying data matters to the result, which means calibrating sensors and validating collection methodologies 1.
Two cautions on the number you produce
The New Digital Divide argues that digital investments should be measured holistically across the enterprise as an influence on purchase decisions rather than each investment being expected to yield an incremental return, and that ROI tapers off as overall investment grows 2. As a benchmark, the automotive and CPG food markets saw up to 27% sales ROI increases from out-of-home advertising and digital signage 3.