Monetize Your Digital Signage
Monetize Your Digital Signage
Outside of all the fundamental reasons that digital signage provides exceptional ROI, earning advertising dollars gives an immediate and measurable return.
Reaching customers and stakeholders is a major challenge in business. Advertising is a common strategy in reaching customers, whether your objective is to increase awareness or initiate an action. In certain industries, the biggest challenge is to reach your customer and find where they primarily interact, i.e. social media, television, or website banner ads. The growing challenge, especially with millennials, is to get past their ad blockers. Ad blockers, according to a Business Insider article, will cost the advertising industry $12.1 billion dollars in ad revenue by 2020. Another challenge is how long you can keep the attention of your desired audience. With the obvious benefits of advertising and the ever-changing challenges comes a solution, digital signage.
An existing network or a new network can be utilized to sell advertising spots to local companies and major ad buys. Business owners or buyers can reach out to local and large organizations to pitch the benefits of advertising on their network. This could include a one pager that outlines their customer demographics, frequency, views, and average engagement rate. Another option is to partner with large advertising agencies or buyers that can sell advertisements for you, on commission. These earnings are nearly limitless, it all comes down to supply and demand. For instance, prime time television pricing can exceed $200,000 for one 30-second ad or millions for the Superbowl, according to Ad Age. Comparisons could be made between digital signage across a nationwide network to an average prime time television ad in relation to number of views and frequency. Revenue will depend on frequency, how many days the ad plays, and how many ads you’re able to maintain on your network.
After establishing a monetized network, a strategy needs to be in place in order to keep customers and stakeholders engaged. The frequency and quality of advertising needs to be constantly monitored in order to maintain the quality of your network. Without quality, your customers and stakeholders will become less engaged, resulting in decreased ad revenue and brand messaging. Systems need to be in place in order to provide proof of play reports and monitor frequency, as advertisers typically request these as needed. Additionally, where the screens are placed impacts dwell time and overall engagement. For instance, entrance screens may have less dwell time than a menu board with long lines. How long an individual can see the screen increases the chances of engagement and interest from advertisers. All of which are measurable through surveys, focus groups, and as technology grows, eye tracking.
Benefits to Advertisers
A significant benefit to ads on a digital signage network is the localization aspect. Major brands know who and where their target audience is. What digital signage can provide is time-of-day messaging, measurable engagement, and high frequency. Retail and grocery stores know their traffic rates, demographics, and how long customers spend in every area of the store. These are major selling points to local and big brand advertisers. Plus, the cost can be significantly less than alternative mediums.
Network Owner ROI
Ad dollars can easily offset the ongoing costs and even generate large profits for new and existing digital signage. Returns can vary from a local shop having sponsorship spots on their digital menu boards to major retailers showing full 30-second ads across their networks to generate profit and continuously boost buyer budgets. The profits and proven ROI can provide even greater opportunity for expanding networks and increasing overall digital presence.
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