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Q&A: What is the ROI on Digital Signage?

August 16, 2012

Of course, the answer to this question all depends on how you are using digital signage. If you’re using it to build brand awareness, the return on investment can be hard to measure. But if you’re using digital signage to advertise a specific product or service, you could expect anywhere from a 33% to a 175% increase in sales…amazing ROI!

Let’s say you own a retail store  and you sell organizers. The organizers cost $10 wholesale, and you sell them for $20.

You have a great looking endcap at your store that features these organizers. However, if shoppers aren’t sure what they are for or how they work and it’s not clearly explained on the packaging itself, regardless of how amazing the organizer (or your endcap display) is, you’re probably not going to sell a lot of them. You might sell three per week, for $30 profit. You’d be making about $129 per month from the sales of these particular organizers, or $1,548 per year.

Now let’s say you put in one digital display screen, featuring passive content and a simple product demo video to show shoppers how the organizers work and how amazing they are. Your initial costs might run somewhere from $200 to $500 depending on a few factors. But even with just a 33% increase in sales, you’re making  $172.77 per month, or $2,073.20 per year.

You’ve made all your money back already, and just imagine what a 175% increase looks like – $354.75 per month, or $4,257 per year. Not too shabby for your $500 investment!

This is just one example to demonstrate the ROI potential for a simple digital signage application at a retail store. The bigger and more detailed you get with your digital signage, the more the initial costs. Just keep in mind the findings from Digital Signage Today – a 33 to 175% increase in sales can do a lot for your business.

If you’d like to talk with us about ways you could use digital signage at your company, email us or call 800-584-4653 x6382.

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One Comment leave one →
  1. October 30, 2012 4:12 pm

    Edited on 10/30/12 to make the math more accurate.

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