LED Message Sign ROI

Your LED Message Sign Can Pay for Itself in as Little as Three Months

In a recent study done by the University of Cincinnati Economic Center they found overwhelming evidence that an LED message sign can not only pay for itself quickly (3 to 15 months) but also bring many more customers and therefore revenues to the business with the sign installation.

Here’s the detailed article published by the SignFoundation.org:

Electronic message centers (EMCs) can positively influence sales and transactions, according to new research from the University of Cincinnati Economic Center. The study is the first to show the economic value related to EMCs, a rapidly growing form of signage.

The research, titled “The Economic Impact of Exterior Electronic Message Boards” and conducted on behalf of the Signage Foundation, Inc., found that stores also enjoyed:

  • an increase in total transactions;
  • an increase in destination transactions (purchases of products that the consumer went to the store specifically to buy);
  • an increase in the number of convenience or “impulse” transactions, resulting in an increase in convenience sales.

It found that the break-even point for an EMC installation was as low as three months and as high as 15 months. The full results are posted on the Signage Foundation, Inc., website.

“Therefore, in most cases, the installation of such a sign generally pays for itself in less than a year and contributes positively to the business bottom line for the remainder of its life cycle,” the authors of the study wrote.

The information analyzes data from 19 test stores which had received new EMCs, and 55 control stores which had not undergone a sign change. All stores were within the same national retail chain.

This is just the latest work to add to a growing body of research that quantifies the economic value of various types of signage. Two previous studies-from the University of San Diego (1997) and University of Cincinnati (2012) both called Economic Value of On-Premise Signage-showed the influence of signage on business growth.

The most recent research-and previous studies on the economic value of signage-are available under the Research Library portal of the Signage Foundation website (www.thesignagefoundation.org).

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