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Advertising Before Technology

LED Technology
Getting the heat out

 

After talking to some electronic message center (EMC) manufacturers —including Watchfire and Daktronics —and savvy sign companies—including Masstar Signs in Greenville, S.C.—it became quite clear that the EMC question is more about sales than technology.
 
The technology and how EMCs work, as well as what works best, are certainly important considerations. However, it’s easy to get lost among the trees of technology and not see the forest of opportunity for any end user who wants to drive sales of their product to passing consumers, whether they’re driving, walking, biking or Segwaying. In other words, the discussion with potential customers should revolve around the long-term advertising value of EMCs, then the best technology to move their message to the consumer.
 
When it comes to EMCs, clients are more concerned with the sales they will generate than the technology involved. Photo courtesy Watchfire
 
EMC ADVERTISING VALUE
“Certain customers of ours have brand managers who have merchandise to move. Those brand managers say they need electronic message centers because they know when those message centers are installed and running with promotional message they sell that product,” says Lee Stegall of Masstar Signs. “One of our quick service restaurant customers told us that when they promote a particular product on any given day they see sales for that product increase by 300 to 400 percent. That spoke volumes about what an EMC can do for someone’s business, particularly since that customer doesn’t promote specials as price points. They were just promoting something that’s the same price every day. Most of our customers don’t like to share data about the effectiveness of their EMCs because they don’t want their competition in on their secret.”
 
Masstar Signs has been selling EMCs for the past 12 years and has kept a close eye on the technology, watching it evolve and improve, especially over the past few years. Pixel pitches, which affect resolution, have gotten much tighter, full color displays are more accessible and the software is much more intuitive and robust. What’s interesting, though, is that while the technology is still crucial, Stegall says service, support and the company’s history and track record top the list. 
 
“The responsiveness and availability of our sales rep and support staff are significant factors,” says Stegall. “Are they responsive? Where are they when you need them? Masstar Signs has installed over 1,000 EMCs and provides full service and support for it. We couldn’t do it without the right product, vendor and support staff at Masstar. I’ve evaluated systems where the value is just not there, in both support and technology. Having the right partner is critical for long-term success because we’re in it for the long haul, so you have to do your homework on each potential vendor.”
 
This is a great time for customers to invest in EMCs, adds Stegall, because while the technology has improved significantly, the costs have gone down, bringing full-color capabilities closer in line with monochrome (amber and red) displays for more flexibility and versatility.
 
“One of our quick service restaurant customers told us that when they promote a particular product on any given day they see sales for that product increase by 300 to 400 percent. That spoke volumes about what an EMC can do for someone’s business, particularly since that customer doesn’t promote specials as price points. They were just promoting something that’s the same price every day,” says Lee Stegall of Masstar Signs in Greenville, S.C. Photo courtesy Daktronics
 
“In the end, our sales role is to be a consultant so that when the customer is ready, they’re buying and we’re not selling them something,” adds Stegall. “If you’re really looking to establish a long-term customer, you surely need to evaluate who they are and what they are trying to accomplish by asking a lot of questions up front to learn as much about their business needs as possible. When you meet with a potential customer, you ought to be talking a lot more about what they do than what you do,” adds Stegall.
 
The answers you uncover about their needs, the demographics of their customers, their location and what they’re currently using to promote their products and services will then lead to the appropriate solution that will help you narrow down the technology and components with your vendor partner.
 
According to data compiled by EMC manufacturer Daktronics:
 
• Americans travel an average of 302 miles in seven days
 
• Outdoor media reach 96 percent of drivers/passengers
 
• Two out of five consumers don’t make the decision to shop until the last minute
 
Based on these numbers, other consumer behavior data and trends in advertising media, Daktronics advises sign companies to first look for high-traffic locations, then sign-code friendly areas, new construction projects and retailers that advertise a lot for new business. Still, it’s equally important to evaluate your current customer base to see if they meet the basic criteria for an EMC and then present that option on sign quotes.
 
STREET TO DOOR
The point is that you can’t sell the technology itself until you sell the advertising benefits of EMCs first. It has to be looked at as an on-premise outdoor advertising medium that brings drive-bys into the door. If it doesn’t do that, then it’s obviously not an effective medium. But EMCs have proven time and again that they actually do what they’re advertised to do.
 
EMCs cover the gamut from basic information to entertaining scoreboards.
 
“More end users are beginning to understand that they’re not buying a matrix of LEDs, but are investing in a dynamic form of advertising. They can change the message at a moment’s notice. If they get an unexpected supply of something and need to get rid of it, they can put a message out there that sells the product immediately. There is no other form of advertising that allows that kind of flexibility and return on investment,” says Randy Crothers of Watchfire.
 
A related issue that’s driving more businesses with streetside visibility to EMCs is media fragmentation. Traditional and even Web-based forms of advertising are simply not as effective for main street businesses to bring customers to their doors. Moreover, as the media continues to fragment and the choices become almost overwhelming, the ends (cost) do not justify the means (traditional advertising).
 
If a sign company wants to show off a nice EMC to its clients, having one at your shop can be very convenient. Photo courtesy Masstar Signs
 
“When you break it down to cost per day, we find that it costs about $99 per day to advertise in the Yellow Pages, $250 on radio and $700-plus for newspaper advertising. The EMC sign cost will range from $10-$20 per day. From an ROI perspective, an EMC makes all kinds of sense when you compare it to other forms of advertising. It reaches people who can make a decision then and there as opposed to other forms of advertising,” says Crothers.
 
Therefore, one of the criteria for installing an electronic message center is whether or not the business relies on drive-by traffic, and if it does, is it close enough to that drive-by traffic to lure them in with dynamic messages?
 
“The technology of flat screen and LCD technologies for an outdoor environment is not close to what you can do with an EMC. There are all kinds of issues to consider: Rain, hail, ice, snow, humidity, wind and so forth. Flat screens are really for indoor use only, though that may change years from now,” says Crothers. “One of the things we do is we embed all of our LED modules in silicone so that they’re impervious to nasty weather. We can run any of our modules underwater and they continue to run as if they’re in the sunshine. They’re designed and built for the outdoor environment.”
 
EMCs are very good at improving streetside visibility for a client. Photos courtesy Watchfire
 
Even companies with existing monochrome EMCs are good clients for an upgrade. Photos courtesy Masstar Signs
 
Once the end-user is re-oriented toward the advertising value of EMCs as opposed to the simple purpose of identification, then it’s time to narrow it down and choose the right message center for their needs: Where the site is located relative to traffic, how large the sign should and can be, viewing distances, types of messaging (still images to full video), monochrome or full color and the ever-present sign code and regulation issues.
 
Noticeably absent so far, except in the somewhat abstract concept of comparative advertising value, is price. Most end-users are obviously concerned about price, but it should not be the driving force behind choosing the right solution.
 
“Today, many decisions are price driven, so we know price is important, but by the time we get to that point we hope they’ve learned the value of what a message center can do for them in the long term that will offset any questions about their investment,” says Stegall. “I look at competition for EMCs as media—radio, television, the Internet, newspapers—and this is the best way to reach the consumer right at their door. One of the biggest objections I had in the billboard business was that it wasn’t a time-sensitive media, but EMCs are the most time-sensitive media you can find today. Convenience stores, for instance, can promote coffee in the morning and other products at certain times of day, and they have that ability seven days a week. If you know what the customer’s needs are and what they do now to promote their products, you can shape the entire discussion around how the EMC can work for them.”
 
Stegall adds that improvements in communications have made EMCs an even more powerful advertising tool. Control can be centralized, ironically enough, at a remote site that’s not the central location where the message is being broadcast.
 
Along with advancements in lighting and resolution, EMCs allow end users to quickly manage their message in such a way that it ties in the data coming in from sales with the message they put in front of consumers. 
   
   
   

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