Business Signage: One of the Most Effective Forms of Advertising


Importance of Business Signage to promote your business is immense. On-premise business signage is part of the overall advertising theme of any organization – TV, Radio, Internet, Newspaper and so on. Like any other form of advertising, value of a signage is immense to effectively communicate business message to the prospective customers.

Traditionally, advertising industry measures the success of an advertisement on four methods. These are:

  • Reach:Reach is the measurement of types of consumers is exposed to the marketing message of an organization. For example, you might have noticed cards enclosed in magazines, or packages received via e-commerce retailers. These cards are distributed only to hoping that consumer will divulge their details on the card – range of income, age, and so forth – to determine the characteristics of a customer.


  • Readership: Readership determines the whether the company is successful in penetrate the mind of consumers through the marketing message. The calculation of readership depends on the various aspects of an advertising campaign. For instance, large scale organization can have the advantages of measuring the results of an advertising campaign by approaching companies like Nielsen Media Research. However, small business owners don’t have the luxury of approaching such organizations and dependent on readership tabulations.

Since 1997, a California based organization Signtronix has helped 488 independent small business owners to measure readership. 1 each of businesses takes the survey of 15-30 customers (first-time) to determine why the consumers visited their store. All of them said that they visited the store within 30-45 days after the installation of a new sign.

The Signtronix Survey, 2003 is as follows:

Signage:  46% (3311)
Word of Mouth: 38% (2708)
Newspaper Advertisement: 7% (511)
Yellow Pages: 6% (450)
Radio Commercial: 2% (133)
Television Commercial: 1% (90)

These results demonstrated two different points:

=> Signs are the most effective form of communicating.

=> Signage is the best form of advertising for small businesses.


  • Frequency: Frequency is the measurement of how many times a viewer, listener or reader is exposed to the message of an advertiser. For instance, a newspaper can easily estimate the number of people is exposed to an ad based on the how many newspaper has been sold or delivered. Frequency of a signage is harder to determine compare to newspaper. If your sign is by the road then it is based on the traffic counts on the particular road on a specific period of time.
  • Cost per 1000 Exposures:
    Cost per 1000 exposures or CPM refers to the cost pertaining to sending a particular message to 1,000 receivers. This method is really popular and used in all forms of advertising – radio, television, print, outdoor advertising and signage too. The below-mentioned table showed why signage is the most cost effective form of advertising.


Assumptions Television Newspaper Outdoor Advertising On-Premise Sign Trade Area 40,000 households Circulation of 40,000 households 333,350 cars per day strong>30,000 cars per day Consumer Exposures (over a 30-day period) 1,250 1,250 10,000 900 Cost per Month $16,500 $16,500 $16,500 $115 Formula Media Cost ÷ Consumer Exposures Media Cost ÷ Consumer Exposures Media Cost ÷ Consumer Exposures Media Cost ÷ Consumer Exposures Calculations $16,500 ÷ 1,250 $16,500 ÷ 4,750 $16,500 ÷ 10,000 $115 ÷ 900 Cost per 1000 Exposures $6.60 $1.56 $0.82 $0.13

The table clearly depicts that in terms of CPM, signage is the best & most cost-effective way to promote a business’s marketing message.

Barring the above four aspects, business signage is also a way to increase the profitability of a business. To conclude the topic, it has been proved that signage able to notice the attention of large pool of consumers at a much lesser cost compare to any other form of advertising.

As a renowned Sign Company based in California, we offer all types of business signage that are required for any organization to promote its marketing message.

Jun 29, 2016 | Posted by in Signage Company | 0 comments

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