HOW TO START FUNDING YOUR DIGITAL SCREEN
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Before we delve into strategies for funding digital signage, let's examine the latest statistics associated with digital signage:
- Nearly 70% of individuals have made a purchase or availed a service because they were captivated by a sign.
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Approximately 76% of people have ventured into a store solely due to its signage.
- A remarkable three out of every four individuals have recommended a store to someone else based solely on the signage.
- More than two-thirds of consumers believe that a store's signage reflects the quality of its products and services.
Given these compelling statistics, business owners should prioritise having the most effective signage possible.
However, achieving the best signage can be costly, making it challenging for many businesses to justify the expense of adopting the latest digital signage technology.
Before we explore strategies for funding digital signage, let's examine the associated costs.
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Cost Calculation
Before looking at financing methods for digital signage, it's essential to calculate the overall cost. Several factors influence the cost of implementing digital signage within your workplace. It extends beyond just the price of monitors, screens, media players, and software; it also includes installation and ongoing maintenance expenses.
Hardware
The initial and most apparent cost of digital signage is the hardware. When assessing hardware costs, consider the following questions:
- How many displays do you require?
- What type of displays are needed (static, interactive, refresh rate, high-resolution, etc.)?
- How many media players are necessary?
- Where will the displays be positioned, and will they require additional mounting hardware or kiosks? While opting for lower-cost equipment might be tempting, it's crucial to remember that digital signage should adapt to your business's growth. Investing in equipment that can accommodate future needs can ultimately save you money.
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Installation
To ensure a standard-compliant and future-proof deployment, professional installation is essential.
Costs will vary based on the installer and installation site, so consider the following factors:
- Are existing power and network connections available, or will they need to be added?
- What is the location of displays, and are they in hard-to-reach areas? Consider cable lengths and the total number of connections that installers must establish.
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Maintenance
Like any technology, digital signage requires maintenance. Account for costs such as:
- Service or service contract expenses
- IT administration and management
- Software and licensing renewals
- Labour costs for hardware maintenance or upgrades
- Content creation
For maintaining relevance, consider content creation costs. Additionally, service contracts and licensing renewals are generally fixed costs that are easily calculable and can be incorporated into your budget.
Tips for Funding Digital Signage
Now that you have a sense of the costs involved, let's discuss ways to fund digital signage. Fortunately, digital signage is so effective and versatile that it can contribute to its own financing.
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Rent Out Advertising Space
Digital signage provides ample digital real estate, allowing you to create dedicated ad zones to generate additional revenue. Many companies rent ad space to in-store or unrelated advertisers, tapping into a lucrative source of income. Advertisers favour in-store digital displays for their ability to reach a specific audience. Billions of dollars are spent annually on ad spots in digital signage networks, making ad space rental a primary means of financing digital signage campaigns.
Promote Special Offers
A study from 2010 found that digital signage is over 100 times more effective at grabbing viewers' attention compared to static signage. Leverage this advantage by running promotions to attract more customers to your establishment. Discounts and special offers on products or services are compelling ways to draw people in. You can measure the effectiveness of your digital signage by offering unique promotions and tracking their impact, e.g., "Mention this ad for a 20% discount on your next purchase."
You can also use digital signage to promote events, boosting ticket sales and attendance. In healthcare waiting rooms, display promotions for additional services to increase facility revenue.
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Apply for Government Grants
Schools often receive grants to enhance the student experience, and for-profit companies can also access grants to cover technology expenses like digital signage. Ensure your grant proposal is well-crafted and comprehensive before submission. Contact us today to discuss what Government grants may be available to you and how we can help you with your application.
Reduce Traditional Advertising Costs
Digital signage can help you save on traditional advertising expenses. Funds originally allocated for static posters can be redirected to digital signage.
Moreover, digital signage allows for multimedia content display, offering more value for your investment. Over time, the cost savings on traditional advertising may outweigh the initial installation expenses.
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More Affordable Than You Think
Digital signage may not be the most budget-friendly option for your company's communication needs, but it has the potential to pay for itself in various ways. When considering how to fund digital signage, remember that, in the end, it might be more affordable than you initially imagined.
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Contact the eXdigital team for more tips and information on what
digital signage can do for you!
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eXdigital |107 Buchan Street, Bungalow
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