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The Economic Context of On-Premise Business Signs and How to Establish Value in the Marketplace

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Measuring/Developing Top of the Mind Awareness and Market Share

The most sophisticated studies on recall/recognition factors are undertaken by the billboard segment of the sign industry. Not surprisingly, these studies establish that larger signs on high-density traffic routes generate more revenue for the advertiser than small signs on less frequented roads. An outdoor painted bulletin typically enjoys 4 times the traffic count of a poster. This disparity is reflected in "rate card" prices, e.g., bulletin space of 720 square feet typically commands $3500/month whereas poster space of 320 square feet sells for $750 per month, or less. High traffic count and premiere space position are primary factors in the cost of outdoor advertising because they translate into greater recall/recognition (or top of mind awareness) and market share.[39]

The same holds true for on-premise business signage and political campaign signs. As viewers develop a memory for the product/ good, service or political personage or message, their inclination to choose that item or individual increases. Also, by triggering recognition and recall, on-premise business signage serves not only to signal the presence of a business establishment but also to communicate what is available at that location.

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This study is also downloadable in PDF format here.