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Adaptive Display's Digital Signage Blog

Is Digital Signage an Expense or Investment

Posted by Adaptive Micro Systems on Tue, Aug 04, 2015

Statistics show that companies that make use of digital signage as part of their marketing and communication strategy grow on average year after year and can point their growth back to messaging that was relevant. 

Most people who talk about Digital Signage Solutions for advertising within a business or organization usually ask the question:

"Is digital signage an expense or is it an investment?'_MG_7848-1 

For instance, HD television is considered a purchase, but since it brings entertainment value to the family, it can be regarded as a family investment. 

One important aspect in purchasing a digital signage is to understand how the benefits and its importance to the organization out-weigh the costs involved. 

Digital Signage Cost 

Digital signage is not a one-time purchase, as there are costs involved beyond the initial cost. There are also ongoing and recurring costs. The cost of purchasing and having a digital sign includes:

  • Content
  • Hardware and software
  • Connectivity and installation
  • Operations
  • Labor
  • Design
  • Maintenance
  • Training
  • Software upgrades 

Digital signage is an investment where you don’t have to settle for a cheaper solution for your business. 

True Cost of a Digital Signage 

The initial cost only makes up a small part of a greater picture with which the overall value it brings benefits the organization. When purchasing a digital signage system, look beyond the cost. Realize the real value that it will bring to your business or organization.

Why is LED signage an investment?

  1. It adds value to the place and attracts customers.
  2. It helps market and promote the business.
  3. It enhances conversion and generates business leads.
  4. It gives better brand image and recognition
  5. It improves product and brand loyalty
  6. It helps to better educate customers 

It is apt to say that the cost of a digital sign is a significant business investment but the profitable possibilities are endless. With so much value that a digital sign brings, it cannot simply be termed as a mere business purchase. It is an investment that pays off in the long-run.

The U.S. Small Business Administration reveals that "For businesses that choose to enhance their signage with an electronic message display, the owners typically see an increase in business of 15% to 150%." 

When discussing digital signage technology with your customers, make them see that aside from being an excellent advertising and customer service tool, it is also a revenue generating tool when used effectively. Justify the expense involved in purchasing a digital signage system. Your customers should feel confident that the digital sign will deliver both financial and non-financial returns. 

Investing in a digital sign is a key element of business success. It is a permanent asset whereas other forms of advertising are a repeated expense. 

It is clear that digital signage is not an expense, it's an investment. It gives a long-term, high return on investment value.