Are Digital Signage Solutions Worth the Investment?

Digital signage solutions are the newest iteration of marketing opportunities. They are growing in popularity across various industries because of their ability to change otherwise stagnant displays into dynamic displays. This article will focus on evaluating the return on investment (ROI) for digital signage solutions. 

Digital Signage Solutions Cost Analysis

So, what are the key factors that determine the worst of digital signage software solutions?

1. Cost upfront
2. Ongoing expenses

Upfront costs

Starting with the upfront costs, smart digital signage solutions require specific hardware, software, and installation. You might be able to utilize existing television screens as your display source but you might still have to invest in a computer or tablet that works exclusively with those displays as well as the software that runs the display, and the cost to install the screens where you need them.

If you are investing in flat screens that you want to display above a restaurant order station or throughout your office building, you'll need proper installation that conforms with things like ADA requirements. Depending on your company and your insurance you may or may not need to hire a professional to handle this installation especially if you need to cut into things like drywall and patch the area after the fact. 

Note: In many cases, this is not necessary because the screens come with mounting hardware that can be attached directly to the wall, but it still might cost you an hour or two of labor.

Upfront costs: Between $100-$400

Ongoing expenses

From there, your digital signage software solutions will incur ongoing expenses. These refer more specifically to the maintenance, content creation, and software updates.

Your business has a lot of flexibility in choosing the packages that fit your needs, particularly where content creation is concerned. Many companies offer packages with gradual degrees of options.

For example:

Introductory Plans

An introductory plan might be as affordable as five dollars per month, where anyone can set up and manage the content, with things like Canva design editor. The content gets centralized with a content management platform and lets you schedule media broadcasts, email or chat with issues or questions, display HD videos, and enjoy a small amount of cloud storage for your content. 

These types of beginner plans are best for those companies just getting started with digital signage. 

Consider for example, a small business offering custom window installation. They have their own content that they simply want to run on a display screen positioned in the window at the front of the building facing the parking lot. They also have their own screen on a display stand which has been uniquely designed to fit a custom window. For this company, the introductory plan lets them schedule media broadcasts and manage the unique display and, subsequently, unique content.

Intermediate Plans

Intermediate plans might be slightly more expensive at only ten dollars per month but include everything in an introductory plan, such as collaboration with groups, the ability to organize several screens and different locations, double the cloud storage, advanced media scheduling, and the ability to display content when you are offline.  

Your company might be able to utilize things like phone support instead of email or chat support, display for 4K videos, and, perhaps most importantly for some companies, the ability to display content without the internet.

These types of plans are best for businesses with more advanced content needs. 

Consider, for example, a company located in an area prone to wildfires during the summer months. When power goes out and they are running on a generator, cold start device playback features means they can continue to display content even if the internet isn't working which won't hinder their business during those difficult months.

Advanced Plans

Higher tier professional plans for organizations that need customized solutions might involve exclusive volume pricing, custom development for content, and appropriate cloud storage, the price of which gets negotiated. 

Ongoing expenses: Between $5-$20 per month

Digital Signage Costs Compared to Traditional Advertising

Digital signage costs might be a few hundred dollars to set up, and there is an ongoing cost between five and twenty dollars per month for the average company. However, traditional advertising can cost well over a few hundred dollars each time new material has to be printed or updated. 

Benefits of Digital Signage Solutions

There are several benefits associated with digital signage solutions, not least of which includes the improved ability to facilitate internal and external communication. Digital signage doesn't have to be limited to marketing material displayed to customers. Offices can use it internally to display updated information about scheduling, company policies, or known IT issues in real-time.

When used for either of these capacities, it increases customer and employee engagement through dynamic content. The content generated can be more eye-catching, which means both employees and customers are less likely to miss it or overlook key details and more likely to take action in a way that works for your company, whether that is completing a task as an employee or making a purchase as a customer.

Digital signage can streamline your operations and reduce manual work. When you utilize software packages that allow for scheduling, for example, your company can display content based on who is on shift in the office or which customer groups are most likely to patronize your company. Similarly, you can make updates based on the season or the holiday, and this reduces a lot of manual work that would otherwise go into changing out holiday displays or adjusting content based on customer profiles.

ROI Calculation

So, how do you calculate the return on investment you would get by optimizing smart digital signage solutions?

Key metrics

The key metrics for evaluating the ROI of digital signage include:

1. Sales increase
2. Cost savings
3. Customer feedback

Many companies provide free trials where you can utilize digital signage software for a few weeks and see whether or not it works well for your company and improves things like customer or employee satisfaction, productivity within your office space, sales, or cost savings.

Future-Proofing Investments

All companies want to ensure that they are able to future-proof their investments and digital signage makes that possible. With digital signage software solutions you can ensure your Solutions grow with your business by working with a company that offers several plans with increasing cloud storage and capabilities. As your company grows so can your plan.

It's important that you also stay updated with the latest advancements in digital signage technology and choose a reliable vendor with excellent customer support and future-proof solutions.

Conclusion

Overall, the worth of digital signage can be found in key metrics like your cost savings, sales increases, and improved employee satisfaction. Businesses should consider digital signage as a valuable investment for future growth and efficiency.

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