funding digital signage

How to Start Funding Digital Signage

68% of people have purchased a product or service because a sign caught their attention. 76%  of people have entered a store based solely on signage. 3 out of 4 people have told someone about a store based on signage alone. Over two-thirds of consumers think that a store’s signage is a reflection of the quality of the service or merchandise.

With statistics like these, having the best signage possible should be of the utmost concern for business owners.

Unfortunately, having the best can be expensive, and it can be difficult for many businesses to justify the cost of purchasing the latest digital signage technology.

Before we discuss how companies can begin funding digital signage, let’s discuss the costs:

Calculating the Cost

Before you learn how the techniques behind funding digital signage, you need to calculate the cost. There are many factors that impact the cost of implementing digital signage in your place of work. It’s much more than just the cost of monitors, screens, media players and software; you also have to include installation and the cost of maintaining your systems.

1. Hardware

The first, and most obvious, cost of digital signage is the hardware. When thinking about the cost of the hardware, there are a few different questions you need to ask yourself:

  • How many displays do you need?
  • What type of displays do you need? – static, interactive, refresh rate, high-resolution, etc.
  • How many media players are required?
  • Where will the displays be located? – will they need additional mounting hardware, kiosks, etc.

It might be tempting to reduce costs here e.g. by using consumer-grade displays, but remember that your digital signage is meant to grow with your business. If you purchase low-end equipment now, you’ll have to buy new hardware in the future when your digital signage needs become more demanding. By opting for hardware that can grow with your needs, you will end up saving money in the future.

2. Installation

To ensure that your deployment is up to standard and future-proofed, you’ll need professional installation. Costs will vary depending on the installer and the site of installation so there are a few things to consider.

  • Are there existing power and network connections available, or will they have to be added?
  • Location of displays – are they in hard-to-reach spots? How far do the cables have to reach?  What is the total amount of connections the installers have to set up?

3. Maintenance

Digital signage, just like any other technology, will need maintenance. Consider costs like:

  • Cost of service/service contracts
  • IT administration and management
  • Software and licensing renewals
  • Labor costs for maintaining or upgrading hardware
  • Content creation

Generally, if you leverage digital signage to meet your goals and get an ROI, naturally you’ll need to plan for how to sustain it in order to continue meeting your goals. To continuously display relevant content, you have to account for content creation costs. Fortnutanelt, this and service contracts and licensing renewals are typically a fixed cost that are easy to calculate and plan for.

Tips for Funding Digital Signage

Now that you have an idea of what digital signage costs, it’s time to figure out how to start funding digital signage. Luckily, digital signage is so effective and versatile that it can help to pay for itself.

1. Rent out Ad Space

Digital signage affords you unlimited digital real estate which means you can have a dedicated zone for ads to generate additional revenue. 

Many companies rent ad space to either in-store brands or non-related advertisers to generate additional revenue. Advertisers love to use in-store digital displays because it offers a chance to reach a more specific audience. Billions of dollars are spent every year by advertisers to purchase ad spots in digital signage networks. Renting ad space is one of the best ways that companies have learned how to fund digital signage campaigns.

2. Display Promotions

In a 2010 study, digital signage was found to be over 100 times more effective at grabbing viewers’ attention compared to static signage. Use your digital signage to your advantage and run promotions to get more customers through the door.

Running a sale on a product or service is a great way to get people into your business. If you’re interested in determining the effectiveness of your digital signage, try running unique promotions for digital signage e.g. “Mention this ad and get 20% off your next order.” Then, you can count the number of mentions and calculate exactly how much money your digital signage is bringing in.

You can also display promotions for your events to sell more tickets and increase attendance. 

In clinic waiting rooms, display promos about additional services offered to increase purchases and revenue for the facility.

3. Apply for Grants

Grants are easily available for schools to improve the student experience.

For-profit companies also have access to grants to help them cover the cost of their technology such as digital signage. Just make sure your grant proposal is well-written and thorough before sending it off. 

4. Save Money on Traditional Advertising

Saving money on traditional advertising is frequently overlooked when companies determine how they can go about funding digital signage.

The budget allocated to static posters can be redirected to digital signage. In addition to printing less, digital signage allows for the display of multimedia content, which means that you’re getting more bang for your buck. 

Over time, digital signage could save you more money in traditional advertising costs than it took to install.

More Affordable Than You Might Think

Digital signage might not be the most inexpensive option when it comes to your company’s communications needs, but there are plenty of ways that it can help to pay for itself. 

When you’re thinking about how to fund digital signage for your company, keep in mind that in the end, it might just be more affordable than you think.

 

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Ask an Mvix expert how we can help:

  • Request a demo and see how Xhibitsignage integrates with the content apps you rely on for more effective communication
  • Get a free quote for our software (when using your own hardware), software and digital signage players, or full-service solutions that include software, hardware, content, and implementation
  • Learn how to use digital signage to grow your business by communicating relevant and useful information

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