Running a small business today feels like trying to be heard in a noisy room. Everyone is competing for attention, and traditional marketing methods no longer work as effectively.
I’ve explored various ways for small businesses to gain visibility, and one option that consistently emerges is investing in neon signs. At first, the cost might seem high, but the long-term benefits are worth it.
The problem is that most business owners focus only on the upfront price and don’t consider the bigger picture. Sure, you could use a simple printed sign or no sign at all, but that might be costing you more than you think.
Understanding the True Cost of Neon Signs
Let's discuss numbers, as that's likely what you're curious about. Custom neon signs typically start at around $80 for simple text designs, but more detailed ones can cost hundreds or even thousands of dollars. That might seem expensive if you're on a tight budget, but there are more factors to consider.
Upon closer examination, LED neon signs offer significant value compared to traditional options. The price covers not only the sign but also its use for many years. LED neon signs last approximately 40,000 to 50,000 hours, which is roughly equivalent to 4 to 6 years of continuous use. That's much longer than most other advertising methods.
Energy costs are low too. A typical LED neon sign uses about 0.023 kWh per hour at full brightness. This means running it for 6 hours a day costs around £0.0354 per day or approximately £1.06 per month. Compared to ongoing expenses like print ads, radio spots, or online marketing, this is quite affordable.
Even better, these signs need very little upkeep. Unlike traditional neon signs that often require gas refills or repairs, LED signs are durable and can withstand various weather conditions with ease.
The Instant Visibility Benefit
While researching, I found that 83% of people notice LED neon signs, and 71% remember the message shown. This is an impressive attention rate that most marketing methods would envy. When people walk or drive by your business, the bright, colorful sign instantly makes you stand out.
This visibility alone makes the investment worthwhile. Light-up neon signs operate 24/7, providing you with continuous brand exposure at no additional cost. Think about it—traditional ads stop working once a radio spot ends, or a newspaper is thrown away. Your neon sign keeps advertising your business every hour, day and night.
Studies show LED neon signs are easier to see than regular signs from over 100 feet away. For small businesses seeking to attract customers passing by, this increased visibility can mean the difference between being noticed and being ignored.
There’s also a psychological effect. Bright, well-made signs create a quick impression of your business quality. Research shows that 69% of people believe signage reflects a business's quality, and 76.3% have made a purchase because of eye-catching signs.
Building Brand Recognition and Customer Loyalty
Investing in neon signs does more than catch attention right away – it helps people remember your brand over time. Neon signs create "brand recall," meaning customers associate your business with the products or services you offer when they need them.
Look at Nike as an example. Their glowing "Just do it" slogan helped their sales grow from $877 million to over $9 billion. While not every small business will see such big results, the idea is clear: consistent, memorable signs leave a lasting impression.
Custom neon signs, let you show off your brand in many ways. You can include your logo, colors, or unique designs that match your business’s personality. This makes your sign a true part of your brand, not just ordinary advertising.
Neon signs also help create an emotional connection. They can completely change the feel of a space. Whether you run a cozy café or a modern tech startup, the right neon sign shows your brand’s style without needing words.
Clear Return on Investment
This is where the value stands out. Research from The Signage Foundation shows that new building signs usually increase a site's sales by 5% to 15%. Even small directional signs can raise sales by about 10%.
To find the actual ROI, use this formula: (Benefit from signage – Cost of signage) ÷ Cost, then multiply by 100. One study found that every $1 spent on signage can yield a $1.50 return, representing a 50% return on investment.
But benefits go beyond just sales. Neon signs can attract more visitors, boost social media exposure, and increase brand awareness by over 47%. Many businesses have found that their neon signs have become popular photo spots for customers, providing them with free social media promotion.
The long-lasting nature of neon signs also adds to this value. Unlike traditional ads that require ongoing spending—such as new print materials, digital ads, or repeated radio spots—a neon sign continues to work for years with minimal additional cost.
Energy Efficiency Saves Money Over Time
I was surprised to learn that modern LED neon signs are highly energy-efficient. They turn about 90% of the electricity they use into light, wasting only 10% as heat. In contrast, traditional fluorescent lights only turn 10% of electricity into light and waste 90%.
This means real savings on energy bills. LED neon signs use up to 95% less energy than traditional neon signs and up to 80% less than fluorescent ones. For businesses that keep their signs on display all the time, these savings can offset the initial cost over time.
Using less energy also helps the environment, which is important for businesses that want to demonstrate their commitment to being responsible. Lower energy use results in a smaller carbon footprint, which appeals to customers who care about the environment.
Real-Life Success Stories
Sometimes, the best way to see value is through real examples. Here are some businesses that have successfully used neon signs:
1. IKEA UK
IKEA UK installed numerous custom LED neon signs in their stores, utilizing them for directions and social media hashtags. The result? Over 1.2 million Instagram followers and nearly 70,000 posts with #ikeauk.
2. 24/7 Fitness
24/7 Fitness added 11 custom neon signs to stand out in the busy fitness market. The signs helped create an energetic vibe and attracted over 50,000 members, plus a strong social media following.
3. Camden Pizza
For smaller businesses, Camden Pizza utilized a bright neon sign above their counter to stand out in a crowded area, attracting customers from nearby shops.
4. Super Creamery
Super Creamery boosted sales by 35% during slow seasons after adding neon signs inside their store.
These aren’t huge companies with big marketing budgets—they’re businesses that see the smart value of well-placed, well-designed neon signs.
Comparing Investment Options
Investing in neon signs is more cost-effective compared to other marketing methods. Traditional ads, such as TV, radio, or print, can be up to four times more expensive per 1,000 views than digital signs. Print ads also need new materials for each campaign, but neon signs can be easily changed or updated.
The cost to install and maintain LED neon signs has decreased significantly as the technology has become more common, dropping by 50% between 2004 and 2010. This drop has continued, making neon signs more affordable for small businesses.
Social media ads are popular, but they require ongoing budgets and consistent content creation. In contrast, a neon sign continues to advertise your business after installation without requiring daily upkeep or additional costs.
Practical Tips for Small Business Owners
Be realistic about what your business needs. Not every business requires fancy neon signs. Sometimes, a simple, clear text sign works just as well as complicated designs. The key is to spend wisely based on your business and customers.
Location Is Important
Where you put your sign matters a lot. A neon sign in a busy city area will likely bring more benefits than one in a quiet spot. But even in smaller towns, having a unique sign can help you stand out from competitors who don’t have one.
Think About Your Hours
Also, think about when your business is open. If you mostly work during the day, you might not get the full benefit of a neon sign’s glow at night. Still, neon signs can catch attention during the day too, just less strongly.
Modern Neon Signs Are Flexible
The good news is modern neon signs are very flexible. Many have dimmers and timers and can connect to smartphones. This allows you to adjust the brightness, set the timing for when the sign turns on or off, and update the display easily without needing expert assistance.
See Signage as an Investment
Instead of thinking of neon signs as just another cost, smart small business owners see them as an investment. They add value to your property and help market your business. With their durability, energy efficiency, and ability to attract customers, neon signs offer both quick benefits and long-term value.