How Much Should I Charge For Digital Signage Ads
Digital signage is a great way to engage customers and keep them informed. Businesses can use it to display important announcements, provide interactive experiences, and even create an immersive multimedia experience.
Many stores use digital signage to show off products, highlight special events, and ensure that customers are always up-to-date on the latest news. They also make money by selling ad space. If you want to promote another business on your digital signage for a fee, how much will you charge them?
The answer to that question depends on many variables. If you leverage your digital signage to reach a large and engaged audience, other businesses can use it and take advantage of this valuable resource.
In this article, we explore how you can monetize your in-house or in-store screens by turning them into a digital signage advertising network to generate additional income.
How Much Should I Charge For Digital Signage Ads?
Digital signage is still a relatively new advertising medium, so the pricing for these ads can vary widely. But as a general rule, you want to price your digital signage ad packages so they are competitive with other marketing channels.
The ideal ad rate varies. The variation is based on niche, audience size, and advertising packages.
The amount you choose to charge will depend on the specific details of your business and your target market. Still, it's essential to do your research and compare your pricing with what other companies are charging for similar ads so that you can ensure you're offering a competitive price for your services.
Factors that Affect Pricing
Several factors affect the fee you charge for your digital signage ad. These factors are what your client will consider when paying you or thinking of contracting you for ad space.
1. Target Market
The target market for a digital signage ad will significantly impact the ad's pricing. For example, the more specific the target market, the higher the cost of the ad. This is because targeting a more specific audience will require more resources and effort, so the price must reflect this.
Let’s say you are a dentist with digital signage. If a dental floss seller comes to you for adverts, it should cost more than if a school comes to you.
Some target markets are also more ready to spend than others. For example, if the target market is young professionals who are just starting out in their careers, they may not have a lot of disposable income, so a digital signage ad targeted at this market would likely need to be priced more affordably.
If the market has more established professionals with more expendable income, a digital signage ad targeted at this market could be priced higher. Finally, a digital signage ad targeted at students with a high degree of expendable income could be priced the highest.
2. Size of Ad
The size of a digital signage ad will have a direct impact on its pricing. Generally, the larger the ad, the more expensive it will be. First, a larger ad will require more screen space on the digital signage. This means that the cost of the ad space will be higher, as you will need a larger screen to display the ad.
Second, a larger ad will require more graphical elements (such as photos or images), which will raise the cost of the ad. You can charge incrementally more by the space it would take up on your screen and also how many screens the advertiser would like to use. More screens at strategic locations mean more money.
3. Duration of Ad
The duration of the ad is a factor that affects how much a digital signage advertiser should charge.
Generally speaking, advertisers will pay more for longer ad durations because it allows them to effectively reach their target audience. People are more likely to engage with a longer ad for a more extended period of time. However, longer ads mean you will not have enough space for other ads. That is like selling more than one slot to a single advertiser
The time of day you put the ad up also matters. Advertisements that are up during prime time hours, such as in the evenings at a bar, will likely command a higher price than ads that are up during less busy hours.
4. Content of Ad
Ads with higher-quality content, such as interactive experiences or multimedia elements, will typically cost more than ads with static content. Ads with images, videos, or animations typically cost more than text-only ads.
5. Location of Ad
The location of your digital signage affects what you charge advertisers in several important ways. For instance, digital signage located in high-traffic areas such as shopping malls, airports, and hospitals will typically be more expensive than digital signage in less-trafficked areas. Since your ad will be seen by a lot of people, you can charge a higher fee for the placement.
Digital signage located in wealthier or more affluent areas may also be able to command higher prices than digital signage located in lower-income or less affluent areas. It is important to determine the exact location of your digital signage in order to accurately set pricing for advertisers.
On the other hand, digital signage located in lower-traffic areas will likely be less valuable to advertisers, as they will have to reach a smaller audience. Therefore, the amount you should charge sponsors for ads on your digital signage will depend on the location and traffic of the area where your signage is located.
6. Ad Run Time
The length of time the ad will run can also affect the price of the ad on your digital signage. Generally, the longer the ad will run, the more expensive it will be for advertisers.
For example, an ad that runs for one day will usually cost less than an ad that runs for one week. If you are able to offer advertisers discounts depending on the length of time their ad will run, this could be a great way to incentivize them to place longer-term ads on your digital signage.
It is important to make sure your pricing structure reflects the number of days the ad will run in order to maximize revenue.
Cost of Digital Signage Ads
There is no one-size-fits-all cost for digital signage ads. The cost will vary depending on the size of the ad, the number of days the ad will run, and the target market of each ad. So if you have a particular budget in mind, it is important to consider all three factors when choosing the cost of your digital signage ads.
As mentioned previously, there is no one-size-fits-all cost for digital signage ads.
The cost of a single digital signage ad will vary depending on several factors, including:
- The size of the ad;
- The type of ad (text-based, image-based, animated, etc.);
- The target market of the ad;
- The duration of the ad; and
- The complexity of the ad.
Because each of these factors will influence the cost of an ad, it is important to consider the specific needs and budget of each client before setting an ad price.
The cost of digital signage ads varies widely depending on these variables. However, in general, the cost for smaller digital signage ads ranges from $50 - $1000 per month and the cost for larger digital signage ads ranges from $1,000 - $25,000 per month.
You also have to consider the costs associated with setting up and running a digital signage system. While the cost varies depending on the size, type, and complexity of the setup, the main costs typically include the hardware involved, software and licenses, maintenance fees, and content creation.
Depending on the type of system chosen, some associated costs might include cloud storage fees, dedicated IT personnel, or installation fees. It is important to consider the total cost of ownership when investing in digital signage, in order to ensure the investment will pay off over the long term.
If you have spent money to build a digital signage system to reach your existing and potential customers, you have an advertising asset just waiting to be mined.
Allowing relevant brands to advertise on your digital signage can mean that the costs of running the system are fully covered, making the network free for you to operate.
With the right conditions and the right size of advertisers, you can even make your digital signage profitable. Your offer to potential advertisers is access to an already engaged audience. For instance, if you are a retail business, your customers are already looking to purchase.
Advertising on your digital signage near the point of purchase can increase the sales of those advertisers. Additionally, non-retail businesses, such as pharmacies and taxi companies, can benefit from the increased brand recognition and sales that come from being featured on your digital signage network.
You can offer a range of discount packages for advertisers to use your digital signage. Some of the most popular discount packages include:
- An "early birds" package, which offers a discount to advertisers who purchase display space during specific hours of the day;
- A "bulk discount" package, which offers a discount to advertisers who commit to displaying their message on your digital signage for a set amount of time;
- A "first-time buyer" discount, which offers a discount to new advertisers who have never bought advertising space on your digital signage before.
One of the advantages of offering discount packages for digital signage is that it can help to attract more advertisers. By offering discounts for longer-term commitments, it can incentivize advertisers to stay on for a longer period of time.
This will not only help to bring in more revenue, but it will also help to create a more consistent and reliable stream of revenue. Discount packages can help to differentiate you from other digital signage networks, potentially drawing in more advertisers and increasing your revenue even further.
Finally, the size of your audience influences how you price ads on your network. What reports do you have to prove foot traffic? Your price will not be the same throughout the day; you can charge more during busy times and less during quiet times. It also depends on how much money you believe your partners are willing to spend.
Experiment with different pricing options to see what works best for you. Start by calculating how much you need to cover the running costs of your digital signage solution divided by the number of screens and time slots. Depending on your business, you could also consider different types of payment.
Make Money From Your Digital Signage
Advertising is known as one of the most effective tools of marketing. With the introduction of digital billboards, digital signage advertising has become more precise than ever before. Digital billboards use computer software and internet connectivity to power their display.
These signs usually show advertising and other promotional material for local companies. While regular billboards offer little interactivity and engagement, digital billboards can display content that is both engaging and interactive.