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Introduction Guide to Variable Message Signs

What They Are, How They Work and Why They Can Increase a Business' Revenues

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1. LED Displays 2. Why should I buy a LED Dislay? 3. Advantages of LED signs 4. Types of LED signs 5. The real value of a LED sign 6. 10 good reasons to buy a LED sign 7. How to estimate the value of a LED sign 8. Some Frequently Asked Questions >> Download this guide in PDF format <<

1. LED DISPLAYS> Back to the Index

The variable message displays with LED technology are electronic tools for the visual communication, controlled by a CPU. These devices are able to memorize and visualize dozens of informative and advertising messages, in several formats and different timing.

In the last few years the world of LED visualization faced an impressive revolution. This technology made available even for small and medium businesses an fundamental advertising tool, able to visualize high impact promotional messages.

Luminous displays with LED (acronym of Light Emitting Diode) technology, are composed by a LED matrix controlled by a CPU. These electronic signs are low consumption and very long lasting and can have a incredibly high resolution.

LED technology improved drastically in the past decades. Particularly in the past 5 years new production techniques have been developed to increase LEDs' brightness and reduce the decay. All these innovations allow LED bright signs to keep functioning for over 10 years without changing the LEDs.

2. WHY SHOULD I BUY A LED DISPLAY?> Back to the Index

It is a common question among entrepreneurs and dealers all over the world. And the answer vary depending on the type and size of the business. Having a good bright signs may make the difference between the success of the failure of a commercial activity. The position also influence much the effectiveness of a LED display. If well positioned and designed, it can increase considerably the success opportunities of a business.

Nowadays luminous signs are the most accessible promotional tool for many dealers and entrepreneurs that do not want to spend too much money in a traditional advertising campaign. An article published on the official SMB magazine says that "…LED bight signs are the most effective and à less expensive advertising form for the small and medium businesses."

3. ADVANTAGES OF LED SIGNS> Back to the Index

Variable message displays can memorize up to 100 informative and promotional messages, easy to schedule.
LED bright signs allow to change the promotional/informative message a boundless number of times.
Luminous notice boards can transmit variable messages while customers pass by, allowing a higher flexibility in communication with the public.
LED signs satisfy the need for visibility of every commercial activity, during the day and at nights. Moreover sliding texts catch human eye's attention 10 times more than a traditional static sign.
The great flexibility of bright display allows to advertise products and special offers and at the same time to broadcast information of public interest.
LED signs make a commercial activity immediately recognizable within the city's panorama.
Luminous boards represent a safe investment for every activity as they are the advertising form with the best price/performances rate. Only the "word of mouth" is more powerful and cheaper… but it can't be bought or controlled.
The effectiveness of a variable message sign is not affected by the space and the surface available as the traditional static signs.
Luminous boards act as a street vendor, attracting potential customers and leading them into the shop.
Luminous journals allow to advertise one's own commercial activity in the immediate neighbourhoods, preventing the high costs of the traditional promotional techniques.
It is possible to change the messages visualized in case it is necessary to provide information to a specific category of customers. This function can result very useful during events and shows to offer a service of public interest.
In some models of LED bright boards it is possible to broadcast logos and 3D images, in the order and with the timing defined by the shop's owner.

4. TYPES OF LED SIGN> Back to the Index

Variable message luminous displays are becoming a very important media, able to satisfy the requirements of an increasingly chaotic lifestyle. The right use of a LED display enhances the visibility of a business and therefore it boosts the communication with those passing by. Independently by the model, the bright sign must be installed in a visible position and the messages must be clearly readable.

While selecting a LED sign, it might be useful to identify the three typical installations for this kind of products. It is important to remember that there are hundreds of options and configurations to perfectly fit the unique needs of every activity. In this section will be presented the most common type of bright sign:

Building Installations:

these types of variable message signs are installed on roofs, facades and parapets. Usually they are installed in parallel or perpendicularly to the building's facade.

Independent installations:

these bright signs are usually installed on streets and highways or squares, and they are framed into a structure fixed to the ground. This carrying structure can be painted and decorated in order to match the surrounding environment.

Indoor installations:

variable message signs are available also in the indoor use version. Ideal for shopping malls, cinemas, theaters, show rooms and congress centers, they can be installed on walls or have a standing structure.

5. THE REAL VALUE OF A LED SIGN> Back to the Index

An old axiom identifies three fundamental key points for the success of a commercial activity: Visibility, Accessibility and Parking.

A LED sign opportunely installed become a critical component of the visibility of a shop or a any other activity.

In the next few lines will be provided further information about:

Understanding the intrinsic value of a variable message sign with LED technology
Determining what a well positioned sign can represent for the success of a business
Using a luminous board to modify behaviors and habits of customers

Which functions cover a LED bright panel

A variable message sign is a critical component of the visibility of a business as:

Develops in the potential customers indelible memory of the location and product/services available.
Reinforces the recall to other forms of advertising
Attracts new customers and it urges unplanned visits and purchases
Modifies customers' purchase habits. Variable messages are particularly effective in encouraging modifications of standardized behaviors.

How to make a business recognizable

An indicator of how a bright board can be effective is the measure in which the display helps to make a business recognizable among the others. A LED display brand the shop exactly as a label brand a product. If the sign is not visible and attractive, unlikely the business will transmit its message and reach its customers.

Each activity and each commercial strategy will benefit of the presence of a bright sign in the focal point of the building. An LED panel that catches the attention and lead customers to the shop, produces a positive impact on revenues that can be perceived immediately.

How to acquire new customers

In 1995 the International Sign Association (ISA) asked the University of San Diego to conduct a research on variable messages bright signs. The study consisted in the analysis of several variables, as number of present signs, location, opening hours of a well-known fast-food chain

The results of the study showed that the number of LED displays in a commercial exercise had a significant positive impact both on the annual turnover and the number of transactions carried out. For example, one more bright sign produced an increase of 4,75% in the annual revenues while the number of transactions grew of 3,93%.

The results of the study demonstrated that "LED bright signs have a statistically significant impact on the financial result of a commercial exercise (and)… represent a critical factor for its success."

How to change the habits of the customer base

One of advertising's first objectives is change the purchase habits. A well aimed promotion can produce a sensitive increase of the purchases.

Usually a commercial activity covers its fixed and variable cost thanks to a group of usual customers, while gains its profits from chance customers. Variable message signs are specially suitable to encourage changes in the behaviors of the customer base, encouraging unplanned stops and purchases.

It is calculated that 35-50% of the population make purchases outside its own residence's area. It means that a good part of these potential customers could be attracted by a well positioned LED display. Besides a bright notice board visualizes its message 24 hours a day to huge potential customer base and it does it at a price ten times inferior if compared with traditional advertising techniques (considering that a LED display last different years). Minor is the cost of visibility, greater is the return on the money spent.

6. 10 GOOD REASONS TO CONSIDER BUYING A LED SIGN> Back to the Index

To communicate in a busy and chaotic society...

The today's society is very chaotic, customer oriented and communication driven. In this environment, a bright sign is an excellent advertising and marketing tool, available at a reasonable price and with an excellent return on the investments rate.
Because of the great mobility of our society, urban streets represent a huge possibility of promotional communication. When a potential customer pass by, the right bright sign will catch his attention, bringing him into the shop.

To influence the purchase...

The luminous sign is the only indicator that the business is located exactly in that place.
Without a proper sign, potential customers will not notice the business. Clients lost in such an easy way might represent the percentage on revenues needed to earn money.
Purchase habits can be influenced and changed with the use or an effective sign. Information on products and prices can persuade a customer and provoke an unplanned purchase. Variable message bright signs are the ideal choice to provide information on site.
Most of the commercial businesses earn money on the unplanned purchases. With a luminous panel distribution chains and franchising can recall other types of advertising and maximize the promotional effectiveness at low costs.

To make a business distinctive and to boost the advertising...

There is no need to be part of a multinational chain (that uses mass-advertising to recall and make recognizable its logo) to make a business distinctive in the city panorama. The right sign in the right position will develop awareness of the business in all those that transit in the area.
The right luminous board can transform an anonymous place in a absolutely distinctive one. Sometimes the sign is the only indication that a business is located in that particular place. In these cases the sign should become the focal point of the building's facade. The conscious use of a variable message board allows to capture customers' attention and to conduct them directly from the street to the business' entrance.
Variable message electronic panels high technology allows to adapt them to every situation. More and more often the use of dynamic full-color displays is replacing traditional advertising forms like newspaper and static billboards.
The use of a variable message bright panel make possible to communicate to and inform customers and the whole citizenship, therefore providing an important service of public interest.

7. HOW TO ESTIMATE THE ECONOMIC VALUE OF A LED SIGN> Back to the Index

As a real estate or a car, every luminous sign has a value that can be measured. But how this estimate is conducted? There are three main approaches:

Substitution Cost: this method identify the value of a bright display for the visual communication with the cost of any other form of publicity (newspapers, radio or television) needed to replace it.

Market Value: generally speaking, the market identify a premium to the building with the best visibility. External advertising structures as fixed or buses billboards have a recognized sell/buy and rental market. This approach takes into account the market value of a sign depending on the surface dimensions, the visibility, the exposition to the target customers etc.

Revenues and Capitalization: this method is utilized to determine the actual value of the future financial results generated by a good in the remaining useful life. In this case are calculated the revenues generated by clients that stop by the commercial activity only because attracted by the sign.

8. SOME FREQUENTLY ASKED QUESTION> Back to the Index

Do I really need a bright sign?

Probably yes. We live in a chaotic society, on the move 24 hours a day and this means potential customers pass by a business at every hour days and nights. A bright display offer the chance to communicate with the usual and potential customers even when the activity is closed.

Big multinationals create "awareness" when they present constantly their names, logos and products with advertising on newspapers, radio and television. They make their name familiar and their logo becomes one thing with the company. Thank to a LED luminous sign visible 24 hours a day, even small and medium businesses have the opportunity to create "awareness" within their community.

There are many other good reasons to consider the purchase of a LED sign, the main listed below:

Variable message signs are the most effective and least expensive advertising tools for small & medium businesses.
The LED display is a media tool to present the activity to the people, allowing usual and potential customers to identify the business.
Bright boards do their job 24 hours a day, 365 days a year.
Most of the times people judge an activity by its sign.
Some entrepreneurs raised theirs profits simply purchasing a good luminous sign. Others closed the activity simply because they weren't recognized by potential customers. "A business with no sign, it's a sign of no business".

Which is the best luminous sign for my activity?

The answer to this question can vary depending on the activity, the position, the target customers and other factors. In general terms, these guidelines can help while selecting the right sign:

The best display is the one that attract the higher number of customers and transmit the image of professionalism required by the entrepreneur.
The sign must be visible and easy to read for car-drivers and pedestrians passing by the business.
The bright board must be attractive and suitable for the business.
The sign must recall to the usual customers the presence and the position of the commercial activity plus providing the potential customers with an important visual indicator to associate with the products/services available.
The LED panel should be as big as possible, depending on the existing space.

LED displays have an affordable price?

LED electronic boards are the advertising tool with the best price/performances rate. Once purchased they function 24 hours a day, 7 days a week, for several years. The usage of other promotional media require the payment of a monthly fee, without obtaining the property and without the certainty to reach the target audience.

From the entrepreneur point of view, a variable message electronic sign shouldn't be considered as a cost but as an investment. Considering the return on invested capital, the luminous signs are not expensive at all. A well positioned bright sign pays for itself several times.

How can I choose a company that produces LED bright signs?

Making a comparison among the different producers, as for any other product. There are different types of initial approach, as for example to look at the company's references and photogalleries, talking with the sales manager and perform personal researches.

Besides it is important to consider, as for any other vendor:

The quality of the electronic LED signs
The ability of the company to provide a luminous display that respond to the business' specific needs
The knowledge of the product and the experience of the company's personnel
The price, the quality and the value offered
The after-sales service

Is there any legal requirement?

The owner of a bright sign should know any eventual legal requirement that might be related to the display, as copyrights and trademarks, advertising and installation permissions, bill-posting rules etc. These legal requirements vary depending on the Administrative Region where the electronic board is installed.

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Last Update: 1/9/2010