The Cost Effectiveness of Signage: A Profitability Analysis

Studies have shown that on-premise signage can increase sales by 2.5% to 7%. This article will seek to look into this statistic, and at how signage translates into actual sales results. This article will also look at the profitability of signage when compared to other popular forms of advertising and marketing. Westmount Signs is an expert in all thing signage. Click here to contact Westmount Signs and Printing today. Is signage worth the design and installation cost? Read on to learn more.

Signs vs Other Forms of Marketing

Signage is the lowest cost-per-impression marketing method of all of the traditional marketing avenues. On-premise signs cost on average 0.013 cents per view. This is quite low when compared to other forms of advertising, such a television, which can cost 0.66 cents per view. This means that in certain circumstances signage can be 50x less expensive then television advertising. The primary reason for this difference is the single cost nature of signs and their comparatively low production costs. Many other forms of advertising incur monthly or yearly costs in order to remain active, while a sign will continue working for years with only minimal maintenance/repair costs (repainting, replacing light bulb).

Increase Sales Numbers

The following quotations are taken from the handbook, What’s Your Signage? put out by The New York State Small Business Development Center in conjunction with The Signage Foundation for Communication Excellence:

“On average, one additional on-premise sign resulted in an increase in annual sales revenues of 4.75%. In other words, if a business had been grossing $500,000 annually in sales, the addition of just one on-premise sign resulted in a $23,750 increase.”