Do You REALLY See Digital Signage Residual Revenue?

December 20, 2016 at 12:08 PM / by Jake Berg

Repeatedly, I see articles about the increased “residual revenue” as a direct result of a digital signage installation and it causes me consternation. Why you might ask, because the digital signage (hardware) is merely a vehicle for the message.  Big AV installation companies can mislead customers to assume that installing digital displays will automatically increase revenue.  Wrong!  Think of it this way: during the Super Bowl, companies have the ability to purchase “space” for commercials to be seen.  If this purchased space does not have a compelling message and call-to-action, the commercial falls flat.  The message is not remembered by the viewer and it does not increase revenue for the company.  These Super Bowl advertisers need to create entertaining commercials that will grab the attention of the viewer.

If this analogy does not resonate with you, then as a consumer do you remember when you bought your first high-def television for your home?  Did you expand your cable package to HD channels, too? Of course, it only makes sense to watch the best quality resolution on your HD TV.

Digital Signage Content Increase Revenue Render Impact

Similarly, having the best AV system does not automatically mean there will magically be more people watching the screen, especially if images are static, low-resolution graphics.   The company might as well have bought a big banner to hang in their establishment, netting the same results.  Having the latest technology is a wasted investment when it is not used to its fullest potential.  However, the company will see ROI if it's willing to make a minimal investment in 3D animations and motion graphics that grab the attention of the viewer.  This investment takes advantage of the high resolution and technology advances of dynamic video and the display screens.  The newest digital signage is then a worthwhile purchase.

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Unfortunately, the perceived cost of the animations is what thwarts business owners from using video on their screens.  True, going to a full-house marketing agency can be costly.  The easier and faster alternative is finding a motion graphics agency that is small enough to be nimble and skilled enough to produce professional quality video for the digital displays. These smaller specialized agencies offer chewable prices for Ad Hoc services, using your company logo and marketing campaign files, they will animate your promotions to make it visually eye-catching to the viewer.

It is important to remember, re-use video content! Most smaller agencies will reformat your animated video so you can repurpose it, extending its life.  This will bring down the cost, while emphasizing brand continuity.  When these tactics are deployed in emails, websites, and social media, there will be an increase in residual revenue.

Topics: General, Digital Signage, Promotional, Video Content Marketing

Jake Berg

Written by Jake Berg