Why Does LED Signage Work?

LED signage is on the rise, and with impressive results. According to a report from InfoTrends, digital signage increases brand awareness and the amount people spend on their purchases. Not only that, but businesses with LED signs can see an increase in revenue from 15% to 150%. But what about LED signage makes it attractive to the potential customer? Why does LED signage work so well as an outdoor advertising method?

Why Does LED Signage Work? | GDTech

It is easy to talk about the power of great content or visibility when it comes to digital signage, but what goes on in a person’s brain when they see an LED sign?

Let’s dive into the psychology of led signage: 


The Frequency Illusion

Imagine you’re looking into making a purchase. You want to buy a new car, or a new pair of shoes. You start researching what model of car would best fit your needs or have the most room for your family. You start trying on shoes to find the ones with the cleanest appearance and the most comfort. 

Once you’ve considered an option for the cars or the shoes, suddenly you find yourself seeing it everywhere. Maybe you never realized it, but your aunt has the same model of car you’re interested in. Not only that, but she’s been driving it for four years (and now you wonder if the car is as trendy as you thought). Or maybe you shake hands with a client and notice that they are wearing the same pair of shoes you wanted to buy. 

This is known as the Baader-Meinhof phenomenon, or the frequency illusion. When you become interested in something, you begin to notice it more where you may have overlooked it before. 

What does this mean for LED signage?

An LED sign can be a potential customer’s first introduction to your business, product, or service. Because digital displays are extremely visible and hard to ignore, chances are the people who pass your sign will notice it. Now, if your business interests this passerby, they will begin to notice it in other areas. Suddenly, they like the Facebook posts that their eyes have already skimmed countless times. Their friend mentions your business and their ears perk up — they’ve heard of you. 

This frequency illusion can help confirm whether or not a customer wants to do business with you. A great first impression with a dazzling image on a digital sign could mean a positive association with your brand. Now, your foot is in the door to do business. 


Visualizing Rewards

You’ve likely heard of dopamine – one of the pleasure chemicals found in the brain. Dopamine is addictive, and people tend to seek out situations that lead to spikes in the chemical because it makes them feel good. 

But what does LED signage have to do with pleasure? How can digital displays increase dopamine in the brain?

Dopamine in the brain increases when we can visualize the rewards associated with an action or the results of new learning. In other words, if you can show a potential customer how paying for your product or service will lead to rewards for them, they will experience a spike in dopamine, or pleasure. 

Digital displays are an especially effective medium for allowing potential customers to visualize rewards. LED signage allows you to communicate how a customer can use your product or what their lives could look like if they decide to use your service. A high resolution image can directly provide a beautiful and engaging demonstration of the rewards associated with your business to the people driving by.


Variability of LED Signs 

Research shows that dopamine is about chasing happiness, not really about achieving happiness. The anticipation of something good happening is more powerful than something good actually happening. 

Why do we get excited when we feel our phones vibrate in our pockets? Why do people play the lottery when the chances of winning are so low? It’s because dopamine in the brain is less responsive to what is familiar. In fact, our brains are wired to continue to look for variable rewards. If you did your favorite activity or ate your favorite food every day, it might start to feel routine.

Because LED signs are dynamic and can continuously change, they respond well to the brain’s desire for variability. An LED sign could be the most surprising and interesting part of a person’s daily commute because it has the potential to be different every day. Why do you think we are so drawn to look when we see an electronic message board change?


Positive Psychology

Why does LED signage work? It works because the brain responds to dynamic advertising, and LED is the perfect fit. 

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