Digital Signage: Where the profits are

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A natural fit
To determine if digital signage is a natural fit for their customers, signmakers must ask where it would make good business sense to add dynamic content to an existing static signage environment. It is up to sign shops—not the customers themselves—to make the case for the ROI of digital signage.

Ultimately, digital signage does a lot of the same things static signage does, just with dynamic movement. Its features and benefits are complementary to a sign shop’s existing business.

There is a significant overlap in the sense that most shops are currently selling static signs to the same retailers, quick-service restaurants (QSRs), corporations, health-care organizations and entertainment venues—among other customers—that have, in many cases, already been shown to benefit from digital signage. A customer segment analysis is recommended, assigning a percentage of a sign shop’s current business to each type of client, to help provide guidance as to which niches to concentrate on when adding digital signage to the shop’s portfolio.

Research shows sign customers are looking for ways to attract, entertain, educate and motivate viewers—and they are willing to pay for new services to do so. It should go without question that shops would prefer for these customers to buy any and all signs directly from them. Existing clients must be thought of as theirs, not anyone else’s, for both static and digital signage.

It is important to keep in mind their customers will not abandon static signs, but rather add digital signage to their communications mix. Supplying that digital signage is a good way for sign shops to retain those customers and expand their business.

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While the most obvious ‘explosion’ of digital signage has been in retail environments, there have also been many applications for wayfinding.
Photos courtesy Omnivex

Navigating a tangled web
While digital signage should not intimidate signmakers, it does represent a somewhat tangled web of interconnected technologies that must work together. Many companies understand some of these parts—such as displays, networking or content—but only a few grasp the whole picture.

To truly succeed in digital signage, a company must understand the various elements and be able to convey their value to customers who will pay for it. Most digital signage failures are situations involving poor due diligence and business planning.

Each project must begin with a plan and a clear articulation of the client’s objective or purpose. Examples include:

  • Building a brand.
  • Increasing sales of goods/services.
  • Disseminating information.
  • Wayfinding.
  • Improving the customer experience.

Content must then be planned to suit the objective. The creation of digital signage content is an art form specific to the medium, generally involving more than simply reformatting graphics produced for broadcast or printing. There may be a mix of advertising and information.

The design of the system must also meet the project’s purpose, linking hardware and software in an integrated package that will be both manageable and successful. The scale and scope of the deployment must be factored into its design. Other issues to consider include indoor or outdoor installation locations, heat, humidity, ambient light, security and the potential for vandalism.

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