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![]() Planning Your Digital Signage Network
A digital signage project follows a structure similar to other application systems projects. The focus on revenue and other stakeholder benefits however, add additional important dimensions to a typical system development life cycle, signage project or merchandising initiative.
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1. Project Assessment The objectives to be achieved by the displays will be articulated in order to project how Return on Investment (ROI) could be anticipated. These could include for example: a) New Revenues from:
b) Branding through improved perceptions or experiences
c) Reducing perceived waiting times
d) Increasing awareness of products or services
e) Increased throughput or speed of interaction f) Cost Reduction through;
The scenario for the digital signage will outline in varying degrees of detail, how the digital signage display will fit into the operating environment, which types of content will be displayed, the sourcing of the turnkey system or individual elements, how the signage will be operated and paid for, etc. It will describe the digital signage deployment over time from pilot into expansion. Sources of Content will be identified. This could include internal departments, suppliers, various databases or external information providers. Critical Success Factors will be noted. While these may reflect the assumptions in the proforma budget, importantly, they describe key milestones of performance that can reduce risk and modulate both investment and pace. Critical success factors might relate to location agreements, partnerships, participation by suppliers or other advertisers, achievement of investment/funding, interface with databases, effectiveness of certain technologies, etc.
![]() A Pro-Forma Budget will project costs, revenues and cash flow noting the assumptions associated with these projections. In addition to network hardware, software, installations and operations, expense items could include legal, ad sales collaterals and commissions, profit sharing with location providers, viewer audits, branding of the network itself, etc. A Project Plan will describe key activities, timeframes and resources.
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2. Project Development
Display Layout defines how much space is provided for different kinds of content including paid advertising, information such as news, weather, sports, financial, etc., network branding information, etc. The manner in which each field moves (such as scrolling, rolling, swiping, etc) and is refreshed between individual segments will be identified. The display layout may differ at various points during a day depending on viewer traffic, and individual display many differ at various locations on the network. There are many samples of display layouts available including those at www.infocaster.tv. Display Rotation defines the duration of each playout "slot" and how many of these slots are included in a rotation for each region of the layout. Rotation wheels are typically 90 seconds to 30 minutes in duration depending on average viewing time. Slots are typically 15 and 30 second in duration in the wheel. Examples of display rotation and slot durations are available at www.thedigitalsignageagency.com. An Inventory List is derived from the Display Rotation and slot times for each area of the display. The expected viewing time and Viewer Demographic inter-relate with the inventory list. For example, displays in a pedestrian mall will have shorter slots and a shorter rotation to reach commuter traffic than during casual shopping hours. Viewer Demographic summarizes the characteristics of people who will see the display. Criteria such as age range, gender, ethnicity, income levels, typical spending and other factors help to target ads to viewers. Rate Cards are specific to each signage network, because each has a different viewer demographic and display layout, rotation wheel and slot length. Rates often reflect display costs of other medium such as TV ads at about $20 cost per thousand (CPM) viewers, or much lower at $3-8 CPM. CPM rates range to $60 CPM based on demographic targeting. The Point-of-Purchasing Advertising International (POPAI) figures released 2 years ago continue to inspire digital signage as a merchandising tool; 98% of customers buy in stores (rather than by telephone or internet), 91% of customers shop without a list, 70%+ of purchase decisions are made in-store and in-store marketing vehicles are proven to lift up to 65% sales. Tower Records has a unique 600 square foot LED on their Sunset Strip store rooftop. The display enjoys estimated traffic of 13.8 million West Hollywood area viewers annually. 50% of its high visibility, 6-minute content rotation is paid ads, with viewer appeal content interspersed in the other 3 minutes. The rate card offers segments ranging from 15 seconds to 1 minute durations offer 210 displays per day at a publish rate ranging from 4.29$ per min to $1.27 for 15 seconds. In another rate card example, $300 per month buys 30 seconds on a 30 minute rotation, 18 hours per day, on all 8 displays of a public retail area. That translates to 2 displays per hour or 36 in total per day per display - 288 impressions on all (of 8) displays per 18 hour day. At 8640 total impressions per month (8 displays x 18 hour day x 30 days), a rate of 3 $.0347 per 30 second display applies. The total revenue for all 8 displays per month based on 120 total ad potential per hour @ $300/ad is $36,000 or $4500 per display. In a third scenario, pricing of $280 per 15 second ad applied in a 90 second loop, with the loop being expanded to accommodate more than six 15 second ads. 280 plays are guaranteed per day. An $84,000 contract minimum is expected based on $280 per display (i.e. locations) X 100 store locations for a 3 month minimum insert.
![]() Financial planning aspect of Phase 2 will include all revenue and cost items: Revenues for indoor digital signage ad display typically ranges between $2-10,000 per month per display. While some networks seek to maximize revenues, others seek to just cover costs while enhancing a visit experience or branding the organization, products, services, location or personnel. Other networks generate no revenues but increase branding or reduce costs. Other sources of revenue, beyond display advertising include:
Costs fall into major categories including Administration, Ad/Content Acquisition, Network Deployment and Operations
3. Deployment
4. Pilot and Assessment Display layout, the proportion of paid and non-paid content, the rotation wheel and slot lengths will be modified to optimize the display approach.
5. Network Expansion Lyle Bunn is BTV+ Director, Digital Display & Rich Media, and serves as Chair, Education Committee of POPAI North America Digital Signage Group. lbunn@canbtv.com
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