Leveraging the Impact of Retail Digital Signage Advertising Through Behavioral Merchandising

Working Paper #3


Steven Keith Platt, Director and Research Fellow, Platt Retail Institute; John Greening, Associate Professor, Northwestern University; and Bill Pennell, Mediawide UK Ltd. and formerly of Tesco Media Services.


This Working Paper details the benefits associated with Retail Digital Signage (“RDS”), and introduces the theory of Behavioral Merchandising (“BEM”). RDS’s attributes as a new medium due to its ability to mass-customize messages, as well as measure advertising effectiveness, are addressed. Due to the characteristics of RDS, the medium is also uniquely capable of building customer relationships by facilitating retailer and/or brand differentiation, which requires a closed-loop, intelligent content systemization. Toward that end, this Working Paper details the theory of BEM. BEM is defined as the methodology for predicting and influencing consumer purchase behavior in-store by messages delivered via a digital signage system. The objective of BEM is to stimulate the consumer buying process by mass-customization of targeted messages. The output is an organized development of content strategy.

Table of Contents

  1. Introduction
  2. Discussion
      1. Overview
      2. Retail Digital Signage Attributes as a New Marketing Medium
      3. Mass Customized Advertising Messages
      4. RDS Advertising Effectiveness
      5. Behavioral Merchandising to Build Customer Relationships Through Effective RDS
      6. Content Strategy
  3. Conclusions


Alchemy, Brandpartners, Digital Retailing Expo 2006, IBM, NEC Display Solutions, POPAI, Rapp Collins Worldwide, a subsidiary of the Omnicom Group Inc., Reflect Systems, RMS Networks, SignStorey, Inc., Symon Targetvision, The Center for Retailing Education and Research at the University of Florida, and The JCPenney Center for Retail Excellence at Southern Methodist University.