The economic value of façade advertisements on business properties

Research shows that façade advertisements on commercial properties have great economic value. In summary, it shows that:

The University of San Diego has conducted a landmark study for the façade advertising industry. A study worth reading.

It was the first time a statistical analysis was done to determine the economic impact of façade advertising on a business property. Not coincidentally, this research was done in America, as it is the largest façade advertising market in the world and they are at the forefront of façade advertising here. The study used data from three different types of businesses. A large fast food chain, a national home décor retailer and car dealerships in a major city. Even though the study was conducted some time ago, its results are still widely cited.

In 2012, the University of Cincinnati Economic Center delved further into the research. The updates from the University of Cincinnati leaned heavily on the original work and included numerous additional case studies: these examined a U.S. housing chain, a bank with national coverage, a specialty retailer and a car dealership.

Both reports mention 'The Economic Value of Façade Advertising on Business Premises.

The studies showed that exterior changes such as adding façade signs or replacing outdated or inoperative façade signs had a positive effect on sales, number of transactions and profits. About 60 percent of the businesses surveyed recorded average sales increases of as much as 10 percent. Adding just one additional façade advertisement produced a sales increase of as much as 4.75%. This was an impact that was even greater than that of a larger building, longer hours of operation or longer site presence.

If we translate this to a store with annual sales of 
€300,000, then adding an additional façade advertisement thus results on average in a sales increase of as much as €14,250! The enormous profit this generates is totally disproportionate to the limited cost of facade advertising. That is why it is especially important to ensure that the facade advertising has the right look, is made of high-quality materials and is beautifully and evenly lit.

Brands are built by façade advertisements, information about products and services is provided, and customers are directed to the exact location by a façade advertisement. In short, a facade advertisement on a business building has both functional and aesthetic value.

Visibility and conspicuity are important. As, for example, in the field survey of eight auto dealerships in San Diego. 68 percent of those surveyed reported that facade advertising is an important factor in finding the location of the car dealership. In addition, 18 percent reported being aware of the service department within the dealership because the car dealership's facade advertising mentioned it. When one of the car dealerships was forced to relocate a facade advertisement, 21 percent of visiting customers had difficulty finding the car dealership, without the facade advertisement.

Façade advertisements positively impact consumers and communities by making it easier for shoppers to get the information they need to make their purchasing decision.

Research has found that 50% of U.S. consumers have driven past a business before
without being able to find it, because of insufficient facade advertising.

Updates and improvements to existing facade advertising led to a weekly sales increase of 5% for many stores; poorly performing stores saw weekly sales increase by 15%.

Investing in a new facade advertisement, gives your store sales a huge boost. In addition, the payback period is usually only 6 to 12 months. This places façade advertising among the cheapest and most effective forms of advertising.