Digital Signage: Where the profits are

where_Solara360_4

The average digital signage system sale involves five or fewer screens, which is right in the ‘sweet spot’ for most traditional sign shops to handle.
Photo courtesy Keywest Technology

Content is the driving force of digital signage, just as with static signage. The production and refreshing of animated graphics—supplemented by data feeds, such as weather forecasts, news headlines or sports scores—is the most profitable part of the business.

The necessity of regular service and maintenance cannot be overstated. A digital signage network needs to be checked regularly to provide maximum uptime. Displays need to be calibrated to ensure colours and contrast levels match the source content. A service contract with the client will help reduce risks before they become problems.

Partnerships and risk abatement
Most dedicated digital signage companies, let alone most traditional sign shops, do not have mastery over all of the elements of the medium. Instead, they need to look to partners—not just vendors—who can supply the knowledge and experience they lack.

Digital signage system design and content development are two of the most commonly outsourced tasks. While many sign shops handle content creation as one of their core activities, there are instances where outsourcing it makes more sense. Some third-party companies focus only on developing video content, for example, on a project-by-project basis.

Logistics and installation are also often outsourced on a regional basis. If a shop lands a digital signage deployment project outside its usual coverage area, it can be highly beneficial to have someone else get the components on-site, install them and manage logistics. There are specialized service providers of this type that do not compete with sign shops.

Most hardware manufacturers and software developers sell their products for digital signage through distributors. It is worthwhile to work with a distributor that provides value-added support, rather than simply reselling products.

Content management system (CMS) software is key to any digital signage network and one size does not fit all. The nature of the application will determine what level of CMS is needed, whether simple or complex.

As for the digital displays themselves, all distributors of major brands should provide strong warranties and after-sale service.

Positioning and promoting services
The addition of digital signage can make a sign shop more profitable and help it retain existing customers. As with static signage, there are many vertical markets to choose from and each has its own unique applications and challenges.

After looking at opportunities from the perspectives of these customers and developing a better understanding of their overall signage needs, it is important to actively invest in positioning and promoting the shop to the selected vertical markets. Digital signage providers need to differentiate themselves by offering full turnkey systems, rather than just stand-alone products. Success in this context involves not only forming new, meaningful partnerships with outside specialists, but also helping customers better understand the value of digital signage with measurable ROI. If done properly, all of this will add to the bottom line of nearly any sign shop.

Jonathan Brawn is a principal in Brawn Consulting and director of the Digital Signage Experts Group (DSEG). This article is based on a seminar he presented at the International Sign Association’s (ISA’s) 2016 International Sign Expo. For more information, contact him via e-mail at jonathan@brawnconsulting.com and visit www.dseg.org and www.signs.org.

Leave a Comment

Comments

Your email address will not be published. Required fields are marked *