Digital signage is a growing industry, and since 2016, the global market has been on track to grow by almost a third to around USD 32 million by 2023. But no matter the scale of your organization, bringing a digital signage solution on board doesn’t have to break the bank. There’s no doubt that when implemented correctly, digital signage can deliver significant value for your business – just consider the revolution taking place in quick service restaurants (QSRs), where orders can be placed and tracked via digital screens.
But like any investment, it’s a good idea to understand both the capital and operational costs before choosing the solution that suits you and your audience. Let’s take a closer look at the potential costs of buying, installing, and maintaining a digital signage solution.
Costs to Consider
As with all technology investments, there will always be associated costs for hardware and software – things like cables, networking, and installation. Fortunately, with digital signage, there are a number of streamlined and sustainable approaches you can take to ensure a valuable return on investment. It’s a good idea to identify your requirements to get a complete picture of the actual costs. When calculating the costs, you should consider:
Hardware requirements
Software solutions
Hidden costs
Maintenance and utilities
Content creation and updates
You also need to weigh up the type of investment you’re making. Is this a short-term experiment or part of a long-term marketing strategy? Is it a large-scale rollout across multiple locations, or a single screen in one store? All these factors – and more – are worth considering before making a purchase.
Hardware Requirements
When it comes to digital signage, there are essentially two main hardware considerations. You can probably guess the first – screens – and the second? Digital media players. Both come in various sizes and price points to suit all kinds of budgets. A digital media player can cost anywhere from under $50 USD to around $1,000 USD for a powerful, purpose-built commercial unit.
While it’s possible to use or repurpose TVs, tablets, or monitors designed for the consumer market, some solutions do require more expensive commercial-grade displays. You might also find that some solutions require a dedicated computer to function properly.
Larger hardware brands tend to command a higher premium and often use proprietary hardware and software, effectively locking you into their solution (or a specific partner brand). While they may handle the initial setup and provide early-stage support, customers are often left with difficult decisions long term. If you want to switch software providers or scale your digital signage up or down in the future, you may find yourself in an inflexible position that’s expensive to scale and difficult to scale down.
However, it is possible to find leasing options for the hardware you need, which can help with cash flow management. You’ll also find that pricing is often based on the number of screens you require. Choosing to “bring your own hardware” as part of your digital signage solution makes a lot of sense for many small to medium-sized businesses that may only need a few screens. It also makes sense for larger businesses looking for a more sustainable way to manage the lifecycle of assets like monitors.
In any case, it’s worth considering future scalability – are you likely to need more screens in the future? With a scalable and hardware-agnostic software solution, you can be confident that whether you need 1 screen or 100, you have a digital signage system that can grow with your business.
Software Solutions
Sometimes, proprietary digital signage software comes bundled with dedicated hardware. And as we’ve already seen, this can have its own limitations. But all digital signage networks require dedicated software to publish and manage content. So how do you choose the right one?
Ideally, you want software that can handle content from a range of sources, so you can curate content quickly and easily. A subscription-based model – where you pay per month, per screen – is another convenient way to help with budgeting based on your needs. Preferably, you’re looking for the ability to reduce your subscription costs as the number of screens increases.
Another convenience to consider is a software solution that works with all major screen providers. This gives you the flexibility to scale your offering in the most cost-effective way and not rely on a single fixed-price brand.
“Plug and Play” digital signage software, like Desquare’s Designage, can actually be installed directly onto the system-on-chip (SoC) of many mass-produced screens. This helps you build a solution that not only fits your budget but also supports sustainability by reusing existing hardware. In that sense, an agnostic software solution can help democratize digital signage, lowering the barrier to entry for businesses of all sizes.
Hidden Costs
Like any major purchase, there are also extra costs to consider. It’s easy to overlook things like shipping and delivery fees, which can add up with larger orders. Whatever form your new digital signage takes – from tablets to large, outdoor ultra-high-definition screens – it’s also worth considering additional costs for cables and mounts.
If power and internet connections are not conveniently placed, there will be additional installation costs that may or may not be included with your purchase and will likely incur extra charges. Proper installation of devices will also require expertise from an AV engineer, which adds to the cost.
Maintenance and Utilities
Alongside the ongoing subscription costs of your digital signage, there are also running costs to consider, such as electricity consumption and internet connectivity. As we’ve already established, you may well need a wired connection, but you’ll also need one that’s reliable and with enough bandwidth to meet your digital signage needs – without compromising quality through lag or buffering issues.
It’s also worth considering the cost of maintenance and the impact of downtime. In a consumer-facing environment, malfunctioning screens can negatively affect customer perception of your brand image. Does your hardware provider offer a maintenance service? Can maintenance be done remotely? Is it something non-technical staff can easily handle?
Creating and Updating Content
With your digital signage in place, you’ll want to consider what type of content you’re going to display and how you’ll create it. Unlike static signage, digital signage gives you the flexibility to test what works and change it as needed. But who’s responsible for doing that?
If you have an in-house marketer or team, it’s a great opportunity to reuse, repurpose, or share great content. You might also consider using a creative agency – though that can be costly and might come with long lead times, especially when you just need a quick update.
For a cost-effective DIY approach, templates are a great starting point and allow you to structure content to suit your own purposes. Keep an eye on this, because Desquare has some exciting things coming soon! For more tips on how to create great content, check out our blog post “8 Ways to Create Engaging Digital Signage Content.”
Digital Signage That Fits Your Business
The great thing about installing a more scalable, cloud-based digital signage system is that you can tailor it to fit your business or customer needs. If the placement, content, or purpose of your digital signage isn’t making a measurable impact on communication or sales, you have the flexibility to optimize your signage in new ways. That might mean changing the location, re-evaluating the purpose, or reconfiguring the content.
In fact, you have complete control over making changes in response to what works for your business and budget. A SaaS (Software as a Service) solution also provides a low barrier to entry since you only pay for the licenses you need. You can reuse a TV or monitor and sign up for a monthly subscription for a single screen before deciding whether to expand on the same site or roll out to other locations.
If you’re interested in learning more about a scalable, cloud-based digital signage solution – compatible with virtually any hardware on the market – you might want to check out Designage from Desquare.
