Digital signage has revolutionized the digital advertising market and has grown in popularity especially among business owners. This powerful advertising tool is not only more affordable these days, but is also much easier to implement and manage. Compared to other signage or advertising solutions, digital signs offer dynamic and high-definition messaging, unmatched by other advertising mediums like television, radio and newspapers.
They provide countless benefits and are considered a significant investment for any business. Businesses can respond to market changes in an instant by simply changing their digital signage message.
A good digital signage partner is not only focused on making a sale, but more importantly, they share the real power of LED signage to their clients. They make their clients see that a digital LED sign is a significant business investment. They help customers recognize how advertising and marketing works through this investment.
One of the major benefits of LED sign advertising is geographic proximity and the way it generates business leads. Many business owners say that new customers come into their store once they see their digital sign. It gives businesses the opportunity to communicate with potential customers who are on the road, at their front doors or those just passing by.
Digital signage has also been favored over other advertising mediums because of its flexibility in managing content. It also requires less manpower and resources to deploy.
Digital partners should be able to discuss relevant facts with their clients. This includes projected revenues, expenses involved, net sales, benchmarking scenarios and reviewing current sales. It is also essential to discuss the unique challenges that affect digital return on investment (ROI), standard solution elements, best practices and some case studies that assist ROI conversations.
Measuring Digital Signage ROI
Digital signage has proven itself to provide the highest marketing ROI. It is the most cost effective advertising solution for your business since it has the lowest cost per 1000 exposures or CPM. Its CPM is about $0.15 compared to other advertising mediums (like newspaper) with over $5 CPM. This low CPM means that a digital signage can reach a broader audience for less money.
ROI is one of the most important calculations a business has to measure. The ROI of digital signage is long-term. The ability to measure ROI is a critical aspect of marketing that helps determine the impact and value of the new business investment solution.
Factors in determining ROI
- Projected Revenue: This depends on several factors such as people passing or driving by your business each day and the number of impressions it makes.
- Expenses Involved: When calculating ROI of digital signage, consider these expenses- Total cost of buying and installing the LED sign, electrical expenses for running the sign and maintenance and labor costs.
- Net Sales and Profits: After a month or two, calculate the net sales and profits. Compare the results with the previous revenue before implementing LED signage. You will begin to see the payoff of your investment.
With the latest technologies, businesses today have access to every tool, guides and tips to track all aspects of their digital signage.
Without a doubt, customers who make proper use of digital LED signs for their business will surely reap the benefits. According to the SBA, the US Small Business Administration, LED displays typically bring an increase in business of at least 15%.
From an increase in foot traffic to a dramatic increase in sales and greater recognition in their community, LED signage proves to be a smart advertising tool. The ROI from this investment allows businesses to reach their goals, expand their business and grow their companies.