You are on page 1of 2

Open Mic

Digital Signage: Advertising,

Branding and Blended Models
By LyIe Bunn, BJV+

Dynamic Digital Signage provides an Advertisers that typically pay for in-store
opportunity for increased sales and better posters and sampling, ads in a weekend
branding for businesses. The power of this flyer, coupons, catalogues or special
new medium is being harnessed in two promotions, view digital signage as an
different ROI models, and in a blending addition or alternative to these promo-
of the two. tional approaches.

The "Advertis- Sales lifts of 10-30% are typical, with some

ing Model" fea- sales increases reaching as high as 200%. The Hexibility of digital signage allows stores to
display a blend of visual brand reinforcement as
tures ads t h a t Ad recall can be as high as double other
well as targeted advertising.
are paid for dis- mediums and perceived wait time is
play by suppli- typically a 40-60% improvement. The network owner could be a business
ers of products unit, a turnkey service provider, or a sepa-
or services. This The cost that advertisers can expect to rate business established for the purpose
is typically used pay may vary. A CPM {cost per thousand of operating the network. In each case,
in retail loca- viewers) of $6-20 is common, although location agreements for digital display are
LyIe Bunn tions and public the sales lift of some displays is command- exclusive, ad revenues are generated by
ing CPM rates of $60. This is expected to the network managing group (or contract-
displays such as in malls, pedestrian areas
increase as signage network viewership ed out by them), and all elements of the
and electronic billboards.
and performance measures are increas- network's operations are managed as part
ingly clarified. of the service. Profit sharing with location
The "Branding Model" is used by organi-
providers is common.
zations to promote their own products or
services, A retailer might choose to use the Ad rates and insert volume determine
display to promote their private label display revenues. For example, one digital A complete digital signage network, which
brands. A bank that uses digital signage in signage owner may charge $300 per includes two high quality, 40" LCD or plas-
its teller lines can expect to generate month for 30 seconds of ad play on a 30- ma displays, all other hardware, software,
enquiries for its services, generate transac- minute rotation, played 18 hours per day installation and operations, can cost less
tion volume in savings and investment on all eight displays in a public retail than $600, per location, per month.
accounts, and reduce the perceived length area. That translates to 36 impressions
of waiting time. This model typically every hour on each video display, or 288 Plenty of examples of growing networks
includes providing information such impressions on all eight displays each day. exist, such as CompUSA (PiayNetwork),
as news, weather, sports, investor, or At 8,640 total impressions per month Wal-Mart TV, and Tesco {in the UK), Net-
specialty channels to improve the quality (36 impressions x 8 displays x 30 days), works are grovwing across the commercial
of the visitor's experience. the $300 monthly rate breaks down to landscape, including banking, auto deal-
$.0347 per 30-second display. Factor in ers, grocery, apparel, hospitality, entertain-
the potential of 120 total ad placements ment and sport centers, medical offices,
These two models are sometimes blended
per hour for each display, at the rate of C-stores and virtually every retail and
(especially if the display screen is split)
$300 per 30-second ad, and the total service category.
depending on the volume of display time
available and the signage owner's wishes monthly revenue amounts to $36,000
to offset the costs of the digital signage ($4,500 per display). The technology that drives digital signage
system by receiving non-retail revenues is stable and advertisers, retailers and
through some paid advertising. In another example, a 100-location store service providers are increasingly looking
chain may charge a monthly rate of $280 to this visual media to achieve their success
There is great flexibility to enjoy the right per store for 15-second ads. Depending on while improving the visit experience.
balance of content because the display the frequency of insertion, a 90-second
control software used for digital signage loop accommodating six ads would yield Since a key trend is to leverage infrastruc-
allows any images to be displayed in any up to 720 impressions for each ad during ture to maximize business success at each
area of any screen at any time. an 18-hour day. Under a 3-month mini- location, anyone interested in digital
mum contract, the chain could expect a signage should talk to organizations with
minimum return for each ad of $84,000 a proven record of service in providing
There is high value for suppliers of
per store, or $504,000 for all six ads. media for multi-location business success.
products when digital signage ads
appear at the "point-of-purchase", and
LyIe Bunn
in particular when the advertising invest- tn the advertising, branding or blended
Director, Digital Display & Rich Media, BTV+
ment is generally much lower than other models, the locations of the displays Chair, Education Committee, POPAI North
advertising approaches, such as broadcast included in the digital signage network are America Digital Signage Group
television ads. typically licensed to the network owner.