Digital Signage: Understanding ROI, counting the costs

What to ask to ensure a successful digital signage project

  • Have clear, valuable objectives been set?
  • Does the content strategy include a call to action to achieve the objectives?
  • Is the message being delivered to the desired audience?
  • Is the presence of influencers known to help trigger the call to action?
  • Is the right hardware being used to effectively deliver the content?
  • Can the results of the program be continually monitored so they can be tweaked as necessary?

If the focus is too heavy on either the investment side or the revenue side—at the cost of the other—it can lead to a failed campaign. The author has seen many instances where the idea was great, but the execution was very underwhelming, which, ultimately, led to its failure. The alternative is also true; there are many examples where companies have spent a fortune on a sophisticated system, but did not have clear objectives or a content strategy that took advantage of the technology.

Measurement is not always easy. There is reluctance or at least perceived reluctance among many companies to share the results of their project whereby giving solution providers only a limited amount of real historical data on actual programs. Therefore, it is imperative for a company to find a partner that is capable of guiding it through the entire process. Many digital sign projects fail because the integrator could only focus on the hardware or software portion of the solution.

Is it still worth doing?

Yes—digital out of home (DOOH) and digital signage continue to grow at an incredible rate. The overall digital signage market will be worth $30 billion by 2025 with estimates now suggesting that outdoor digital signs will contribute upwards of 45 per cent of this total.

Technology is always getting better and less expensive. The sheer amount of data available makes measurement much more accurate, which, in turn, enables the messaging to be targeted precisely.

Many digital sign projects fail because the integrator could only focus on the hardware or software portion of the solution.

So, the next time a client asks any one of the questions mentioned at the beginning of this article, the simple answer is if they have clearly defined objectives with a valid measurement methodology and a well-defined expectation on the value of achieving the objectives, the likelihood for success is extremely high.

Andy McRae is general manager for Dot2Dot Communications, a full-service visual communications company that designs, develops, and manages immersive digital signage experiences. For more information,
visit www.dot2dotcommunications.com.

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