Digital Signage: The advantages of renting systems

by all | 30 March 2017 10:32 am

By David Weatherhead
Over the past few years, there has been a major shift to digitization in visual communications. As a result, people now see and experience digital signage all around them. Through constant, immersive exposure, they have even come to expect it.

When people walk into a corporate office, attend a concert or even watch the news on TV, they now expect to see digital signage in use, displaying content. Indeed, they expect to see digital displays whenever and whenever a company, advertiser or broadcaster wants to make an impactful statement and stand out from the endless stream of information to which the public is exposed every day.

For these reasons, the digital signage rental industry is growing in Canada and around the world. As opposed to purchasing, renting makes digital signage systems more accessible for short, important periods of use, allowing many more companies than in the past to meet the public’s expectations for visual communications.

Whether digital signage is deployed to announce and celebrate the launch of a new product, provide the backdrop for a live performance on stage, renting is quickly becoming the norm for maximizing impact while minimizing cost.

Reducing costs
Renting audiovisual (AV) equipment is an ideal option for a client who wants a short-term system to make a statement. By planning a temporary digital signage installation, rather than a permanent one, renters can select key dates for their marketing campaigns and promotional initiatives and then use the optimal technology during that period only. They can achieve a high profile without the heftier upfront costs involved in purchasing digital displays and all associated equipment.

Companies that rent out digital signage systems, in turn, can capitalize on this expanding trend by explaining to customers how it can be far more cost-effective to use the technology for a key period instead of owning it for a longer term.

Deploying a permanent digital signage network, after all, often brings an onslaught of unforeseen costs relating to content processing hardware, information technology (IT) infrastructure, mounting systems and colour balancing software, among other expenses separate from the screens themselves. And between purchasing the equipment and having it all installed, the costs add up significantly.

It is easy for clients to become discouraged by the efforts and numbers involved in buying digital signage. The rental business model, on the other hand, offers them the best of both worlds. They can use digital display technology when they need it most, without making a substantial financial investment in it. Hardware, software, installation and technical support are all included in the price, but also, the company renting out the systems is available to provide dedicated support at a moment’s notice should anything go awry, while the manufacturer offers a separate maintenance contract.

Skipping yesterday’s technology
Digital signage technologies are evolving at a rapid pace and continually improving. Screen resolutions are becoming clearer and bezels between displays are shrinking.

One of the major advantages of renting digital signage systems, rather than buying them, is the ability to access the latest cutting-edge technologies. Clients are not limited to using screens they purchased years ago to relay their current messaging and make a powerful statement today.

Any digital signage purchase represents a relatively long-term commitment. Within a few years, many clients find themselves looking to upgrade to newer technology, so as to sustain the original ‘wow’ factor they created in the past. Renting allows them to benefit from only the latest, greatest equipment.

Pop-up stores, for example, only need digital signage for a short-term campaign—e.g. one month—to promote their new products or services to the local market. As such, they may opt to rent top-of-the-line equipment to draw as much attention as possible to their storefront over the course of a few weeks, rather than make a permanent purchase.

Business benefits
Some clients also enjoy other business benefits from renting digital signage systems. By way of example, 100 per cent of a business rental cost can be immediately expensed without depreciating over time like a display purchase would.

Additionally, a rental is an operational expense, as opposed to a capital expense. If a company plans to purchase a large video wall for its lobby or store, that investment will be registered as a capital asset on the budget, which could become maxed out with as significant an expense as that of a digital display. Renting, on the other hand, is a great way for marketing and event teams to use technology on a temporary basis and factor it into their budget in a way that gives them greater flexibility.

For these reasons, renting is particularly advantageous for companies that have bigger operational expense budgets.

Where the demand is
Digital signage rental projects are both increasing in frequency and wide-ranging in application.
A major automotive dealership, for example, recently used temporary digital signage for an on-site party complete with a DJ, VIP guests, media and prospective customers in attendance. The client simply required extra displays to augment its launch event, not the installation of permanent fixtures in its facility. The focus was on designing and installing a spectacular short-term display for the event’s attendees.

In the summer of 2015, the victory tent for Toronto’s Pan American (Pan Am) Games featured two video walls. One used 1.4-m (55-in.) liquid crystal displays (LCDs), while the other assembled 1.2-m (46-in.) LCDs. And just two months later, CTV commissioned one of the biggest video walls ever assembled in North America—comprising 108 of the 1.4-m LCDs—for its annual ‘upfront’ presentation, announcing its new fall lineup of TV shows.

As these three disparate examples show, the situations in which temporary digital signage systems can create a major impact are endless.

When to sell, not rent
While the rental business model is a great way to get more clients to use digital signage, there are still many scenarios where will be better off purchasing than renting. If the client plans to use the same system frequently, for example, then it is worthwhile to invest in purchasing, installing and maintaining a permanent digital signage network.

Also, purchasing is sometimes more cost-effective when it comes to outdoor applications. Specifying and installing digital signage outdoors, especially in Canada, poses certain complications. The display must be rated for ingress protection (IP) against moisture and particulate matter, withstand extreme temperatures and endure high winds and other inclement weather. Such displays are not easily available or affordable through the rental marketplace. Rather, any client considering an outdoor display is advised to purchase a high-quality system, even though doing so will definitely require a significant budget.

A growing trend
Indeed, there is no shortage of opportunities for selling digital signage systems today. The new demand for rentals, however, should also be taken seriously. The trend is growing and will continue to do so. Not only is there increased demand for digital displays overall, but more and more people are seeing them show up as dynamic, engaging and immersive backdrops for special events, from auto shows to new product launches, and so they are coming to expect them at other events. And as mentioned, with the rental model, every client can use the newest, most innovative technologies available at any given moment.

David Weatherhead is president of APG Displays, which distributes video walls and other ultra-large-format digital displays, and APG Rentals, both based in Mississauga, Ont. For more information, visit www.apgdisplays.com[5] and www.apgrents.com[6].

Source URL: https://www.signmedia.ca/digital-signage-the-advantages-of-renting-systems/

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