KPIs for Digital Signage

Digital signage is becoming increasingly popular and supports many companies in their advertising campaigns. Do customers notice digital content at all? Are the measures efficient enough? How do you optimize the use of digital signage screens?

Digital Signage KPI
Key Performance Indicators (KPIs)

These central questions are a daily concern for management and marketing specialists. In order to be able to create a meaningful analysis of the success of the measures, certain key performance indicators, the so-called KPIs, are required. These measures reliably the input and output and enable the comparison with defined targets. In this way, they serve as a basis for optimization.

What means KPI

Measuring success, made easy - that's precisely the overriding premise of KPIs. Three letters that play an enormously important role in marketing and help the use of digital signage to succeed.

Definition of KPI

By definition, the key performance indicator (KPI) is a measurable value that indicates how effectively a company is achieving their business goals.

Within an organization, KPIs are broken down to different levels to evaluate the success achieved within the organizational structure.

While top-level KPIs focus on the overall performance of the organization, lower-level KPIs aim to measure the success of individual business processes such as development, marketing, sales, human resources and customer support.

Simple examples of KPIs

To measure the success of social media campaigns, interaction or subscriber counts serve as typical KPIs. Impressions, page views or conversion rates are suitable for websites. Sales uses revenue per salesperson or measures cost per lead.

Digital Signage KPI

In the field of digital signage marketing, the primary objective is to measure the success of advertising. Does it reach customers via digital displays at the Point of Sales (PoS) or Point of Interest (PoI)? Are they being targeted? Performance metrics enable reliable measurement of the effectiveness of advertising campaigns in this context.

KPI: S.M.A.R.T.-Method

When determining KPIs, it is essential to check the accuracy of the selected indicator. This is often done using the S.M.A.R.T. method. With the S.M.A.R.T. approach, the relevance of a key performance indicator can be evaluated very easily.


Smart KPIs are to be defined according to the following criteria:

  • Specific

    Specific means the indicator is directly related to the process in question. Example of specific: The percentage of repeat buyers for a particular product or the number of answered calls in the first minute in a call center.

  • Measurable

    Measurable means that the indicator is measured in any unit. This could be time, quantity or percentage. This attribute is important to evaluate and analyze the exact value of the KPI in more detail. The measurability of the indicator guarantees the capability of its clear definition at any stage of the process.

  • Achievable

    Achievable means that the value of the indicator can very well be reached in the normal course of the process. In addition, achievability means the availability of measurements, simple calculations and the collection of primary information, as well as the availability of all necessary measurement tools.

  • Realistic/Reasonable

    Realistic or appropriate means that the indicator is not only relevant to the given process, but also appropriate to use and actually reflects the course of activities.

  • Time-bound

    Time-bound means that a period of time has to be defined in which the target achievement is measured. A periodical measurement (e.g. monthly or quarterly) is necessary to get an objective picture of the effectiveness of the process and to measure the current value of the indicator.

What are Meaningful Digital Signage KPIs?

Key performance indicators in marketing measure and analyze the success of advertising. In this way, they help determine the interest of the target group in the company's product offerings. Which indicators are useful to determine a meaningful KPI?

When setting key performance indicators, the choice of parameters matters. A good KPI has relevance to the measurement of goal achievement. Therefore, make sure to measure parameters that truly impact the organization's goals or objectives.

Customer-focused Performance Measurement

Among other things, digital signage stands for the image improvement of a company. In addition, the presence of DS is perceived as brand advertising, which not only has an immediate effect through additional visits to the store, but also increases awareness in the long term.

Visitors can be measured with the help of people counting systems installed in the entrance areas or by built-in sensors of the digital-advertising-displays. The effectiveness of the DS and its content is measured by the change in visitor flows within a certain period of time.

Digital signage marketing also influences the increase of the reach to the target group indirectly. Especially when integrating DS into social media networks. Selfie booths are possible, in which customers are animated to post a photo on the social network with a certain hashtag. In return, they receive a discount. In addition to increasing brand awareness, this has a positive effect on both; social network development and customer loyalty. These interactions can also be measured and evaluated.

Revenue-based performance measurement

The success of the implementation of interactive fitting rooms can be assessed on the basis of the sales growth of products in cross-selling. The system records items of clothing that a customer wears into the fitting room and recommends similar or popular products to the customer. If a purchase of an advertised product is made, the conversion can be measured directly as a KPI and the effectiveness of the DS measure can be rated.

Other revenue-based measures of success after the introduction of DS are also conceivable.

For example:

  • Increase in average sales within a specified time period
  • Increase in sales of certain products or product groups as a function of DS promotional activities. For example, in the context of Smart Retail techniques.
  • Effect of the number of visitors on sales

Measuring Success through Testing

It is not enough to just introduce and establish KPIs in a company. A digital signage system provides a good platform for introducing new advertising options and promotions. New forms of advertising naturally create room for new KPIs.

By customizing the advertising format for a specific product, the impact of the advertising content on sales can be measured directly. This is a great way to experiment with new ad content and assess its effectiveness on driving sales.

If a screen display additionally has optical sensors, it is possible to calculate, among other things, how many people viewed the advertisement, when, and for how long. If the reach is related to the sales for the advertised product, this KPI can provide valuable insights into the effectiveness of the advertising message.

In the same way, test a large-scale advertising campaign specifically on individual digital displays before launch. This can then be optimized as needed.

A/B Tests

A/B or so-called split tests refer to test methods for evaluating different variants of advertising measures, designs, prices and more.

This test technique has been an indispensable part of online marketing for several years now.

Digital signage helps here, too. Let's assume that two different advertising videos for a product need to be tested.

High-quality digital signage players include reporting functions that record the playback times of content.

Interfaces to merchandise management, accounting or customer counters allow automated merging of data from different sources. An analysis software calculates which version of an advertising content generated more revenue, sales or foot traffic. By the way, this process is called deep analytics. The used digital signage software should have a certain openness for interfaces, of course.

Return of Invest

Even the ROI (Return of Invest) for the digital signage system can be measured in this way. Provided, of course, that appropriate KPIs were available before the installation. Therefore, before using digital signage, determine what goals the business or company is targeting.

KPIs as Content

The identified KPIs can themselves be presented as content. For example, on the screens of an information system for employees or a digital bulletin board.


Key Performance Indicators (KPIs) are a convenient and important tool that enables any manager or entrepreneur to clearly identify shortcomings in the company's activities.

Digital signage solutions allow the definition and automation of new KPIs in this context. It is also recommended to implement KPIs according to the S.M.A.R.T. method. Suitable marketing success measures include sales, customer numbers, dwell time and, of course, product tests. Interfaces in the used software allow deep analytics.

Gravatar Nikolaos Sagiadinos
Author: Niko Sagiadinos
Developer & Co-Founder SmilControl – Digital Signage
Visit me on: LinkedIn or GitHub

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