TOP
STORIES
 1 of 5
Electrosonic Named 2014 Integrator of the Year
Celebrating its 50th anniversary in 2014, Electrosonic's leadership has its eyes on ensuring the firm lasts at least another half-century.
 2 of 5
Crisis Averted: How 2 Firms Came Back from the Brink of Disaster
SVT and Altel Systems share their tales of tumble and turnaround to help those who may face the same problems prepare for the worst.
 3 of 5
Interactive Video Wall Promotes Recovery at Delaware Children’s Hospital
Kinesis Studio installs gesture-based activity wall for duPont Hospital for Children that gives young patients interactive landscape during recovery.
 4 of 5
Flashback Friday: Advanced AV Assists Ryan Seacrest Foundation
For this week's edition of Flashback Friday, go inside the first broadcast center of its kind inside Children's Hospital of Philadelphia. Seacrest opens the 8th studio today at Children's Hospital in Boston.
 5 of 5
Advance Technology: From Mom-and-Pop to Emerging Industry Force
Advance Technology, a $7.7M firm with limited resources, turns industry obstacles — lack of service revenue, IT convergence and talent recruitment — into competitive advantages.
How to Determine Digital Signage ROI
Pitch your clients digital signage by helping them create a business plan for these new advertising networks.

Article


Commercial integrators must help their customers quantify the business case for dynamic digital signage displays, creating calculations for ROI that justify the expense.
February 25, 2013 | by Linda Hofflander

With more than 350 digital signage software providers worldwide, along with a plethora of content (original and canned) providers, managed services, and hardware manufacturers, digital signage solution scenarios are virtually limitless. This means that there is also a multitude ways to determine and maximize the return on investment (ROI) in digital signage installations.

Discussing ROI with Clients and Prospects

Integrators must share with their clients the relevant facts and data points. These include identifying vertical benchmarking scenarios, reviewing and outlining true measurement examples, and identifying how and why every digital deployment scenario differs and brings with it its own unique challenges that affect ROI. Standard solution elements, best practices, and case studies assist ROI conversations, and equations exist for creating estimated ROI models to benchmark and measure against traditional communications.

Management looks to strategy and measurement to assist in the decision- making process. As with any type of process improvement it’s hard to improve what you can’t measure, so reliable measurement methods are needed to build out the business case for dynamic digital signage when pitching potential clients. Wasted resources and failed programs are rampant, and competition for funding is fierce. Therefore, the only way dollars are justified for new or emerging technologies is to show an acceptable ROI, or at minimum a return on objective (ROO).

Defining key stakeholders and identifying who is responsible for the success of the initiative will assist in laying out the strategy, aligning the program’s dollars, and building out an ROI map. Depending on your product, service and target market, investing in technologies to communicate with your audience may actually be a “cost of doing business” moving forward – no longer an option.

The ROI Equation: ROI=Benefits/Costs

ROI is simply the ratio between benefits and costs, though there are several threats to its accuracy or usefulness:

  • 1. Does the investment meet corporate business initiatives and strategies? What are you trying to accomplish in the short term vs. long term?
  • 2. Capturing all costs associated with the investment. This is usually the easiest part of the equation. Look at the initial investment and the recurring costs.
  • 3. Capturing all benefits associated with the investment. Make sure you are capturing both short-term and long-term benefits.

Think about usage and collection of costs. What are the analytics? What is your need format and frequency? With traditional print communications as your benchmark, collect the expense associated with designing the communication, the printing, kitting, shipping and installation. With digital communication you will want to do the same.

Objective And Subjective Costs and Benefits

Start with an estimate of your current costs. How much are you paying to do your current communications? Keep the methodology and metrics constant between the current tracking and how you’ll be estimating your digital signage expense. If there are errors based on the same methodology and metrics they are relative differences, not absolute differences.

Look at your objective costs by breaking the project down into phases:

  • 1. Analysis, design and consulting
  • 2. Start-up: This includes hardware, software, installation, networking, content and training
  • 3. On-going implementation: additions, redesigns, moves, changes
  • 4. Recurring costs: content, hosting, software upgrades and maintenance
  • 5. Internal resources: Capture your internal resources cost. Many forget to include this in their ROI calculations.
About the author

Linda Hofflander, director of Vertical Marketing, Enterprise Business Division, Samsung Electronics America Ltd., will be presenting "The Business Side of Dynamic Digital Signage," at Digital Signage Expo 2013 in Las Vegas on Wednesday, February 27, 4-5pm. For more information about DSE or to register to join this or any other seminar and learn more about digital signage, go to www.DSEnow.com.
View all posts by Linda Hofflander
Social Bookmark or Share This
  • Facebook
  • Twitter
  • Digg
  • Del.icio.us
  • Yahoo! Bookmarks
  • Google Bookmarks
  • StumbleUpon
  • Technorati
  • Reddit
  • Windows Live
  • LinkedIn
  • Evernote
  • E-mail


  • Latest
  • Blogs
  • Photos
  • Resources
White Paper:
Changes in Workplace Design Equal New Revenue

Code adoption and an office cultural shift toward collaborative environments, create demand for integrated mass notification emergency communication and sound masking solutions.

White Paper: 5 Ways to Profit While Saving Clients’ Money on Utilities
White Paper: Campuses Banking on Emergency Notification, Upgrades
Webcast: Unscrambling Your AVB, HDBaseT Questions
White Paper: Technology Brief on Control Rooms
White Paper: The Voice: How to Design Emergency Communication Systems with Announcements
White Paper: Digital Signs of the Times
White Paper: A Snapshot of the Onsite Freelance & Contractor Workforce
View more papers or webcasts



Recent comments

Are you sure that Almo is the first to offer these services? SYNNEX has been offering installation services…

Posted by Josh Aldridge on 2014 11 21 · commented on
'Almo Pro A/V: Installation as a Service?'.

RPM-AVS has been providing these services to the leading integrators in the US for over twenty years. After…

Posted by Rodney Milner on 2014 11 20 · commented on
'Almo Pro A/V: Installation as a Service?'.

Do you see WHY tuition is so high in college? It has nothing to do with better education and everything to…

Posted by Follow N Money on 2014 11 18 · commented on
'University of Oregon Builds Football Performance Center for Champions'.

This article is disappointingly inaccurate.
The idea that 4K allows people at a distance to see content…

Posted by J. Johnson on 2014 11 17 · commented on
'5 Awesome Applications for 4K Video Projection'.