Budgeting for Digital Signage at Your Retail Property
Outdoor digital signage is a powerful tool for retail properties, offering the ability to attract and engage potential customers even before they step inside. It’s highly visible, dynamic, and allows for flexible content updates that can be tailored to your marketing needs in real-time. However, the process of budgeting for outdoor digital signage requires a well-thought-out approach to ensure that the investment yields optimal returns.
In this article, we will break down the key factors that influence the cost of outdoor digital signage and how you can budget effectively for your retail property.
1. Determine Your Goals and Needs
Before diving into the specifics of costs, it’s important to first define your goals. Outdoor digital signage can serve multiple purposes:
Advertising promotions and sales to passersby.
Brand visibility at the entrance of your retail space.
Wayfinding and informational signage to help guide customers.
Interactive kiosks for self-service or directory assistance.
Understanding what you want to achieve with your signage will inform the size, type, and complexity of the system you’ll need. A simple digital billboard will have different budget requirements than a full-fledged interactive kiosk.
2. Hardware Costs
Display Screens:
The most significant portion of your budget will go toward the digital screens themselves. Outdoor displays need to withstand various weather conditions, including rain, wind, extreme temperatures, and direct sunlight. As a result, outdoor-rated commercial displays are essential.
Key considerations:
Brightness and visibility: Outdoor screens need to be far brighter than indoor displays to combat sunlight glare. Look for displays with a brightness rating of 3,500 to 5,000 nits.
Durability: Outdoor screens must be rated for weather and temperature extremes. Look for displays with an IP66 rating for weatherproofing.
Screen size: Larger screens (from 55 inches to 75 inches or more) are more visible from a distance. The larger the screen, the higher the price.
Mounting and Enclosures:
Proper mounting and protective enclosures are critical to safeguard the hardware from environmental factors, as well as vandalism.
Weatherproof enclosures for outdoor screens are needed to survive all four seasons of weather.
Mounting brackets and hardware, including specialized poles or pedestals, can add to the total cost
3. Installation and Electrical Work
Installing outdoor digital signage often requires professional assistance. Outdoor installation is generally more complex than indoor due to the need for weatherproofing, proper anchoring, and electrical considerations. You’ll need to budget for:
Wiring and trenching: Outdoor signage may require extensive wiring, which could involve trenching and laying cables underground.
Electrical installation: Your signage will need a dedicated power source, often requiring professional electrical installation.
Structural installation: Ensuring that your signage is securely mounted and anchored is crucial for safety and longevity.
4. Content Management System (CMS)
Once the hardware is in place, you’ll need a way to manage and update the content. For outdoor digital signage, you will likely need a robust cloud-based CMS that allows for remote updates and scheduling.
Cloud-based CMS: Depending on the features and level of customization needed. If interactive digital kiosks are needed, choose a platform that includes a CMS for scheduling advertising and managing all property information such as tenant information and upcoming events. A more robust CMS will also provide user interaction data of the digital kiosks to help you understand what visitors are looking for.
5. Content Creation and Updates
Your outdoor digital signage is only as effective as the content it displays. High-quality visuals, animations, and relevant information will engage your audience and drive foot traffic. Outdoor content must be bright, bold, and easy to read at a distance.
In-house content creation: If you have a marketing team, you can create content in-house, which will minimize costs. However, you may need to invest in design software or even hire a content manager.
Outsourcing: Professional content design can assist depending on complexity (video, animations, etc.).
Budget for regular content updates, especially if you plan to display time-sensitive promotions or seasonal campaigns.
6. Network Infrastructure and Connectivity
Outdoor signage must be connected to a reliable network, especially if you are managing multiple screens or updating content frequently.
Wired vs. wireless: A wired connection is often more reliable for outdoor displays, especially in high-traffic areas. If wiring is not feasible, cellular or Wi-Fi solutions are available, but they may incur ongoing data costs.
Bandwidth: Outdoor signage, especially those that stream video content, will need sufficient bandwidth.
Consider backup solutions for power and connectivity to avoid downtime, which could mean additional costs for uninterruptible power supplies (UPS) or redundancy in your internet connection.
7. Maintenance and Support
Ongoing maintenance is essential to ensure your outdoor signage stays operational and delivers a good ROI.
Regular cleaning: Outdoor screens will accumulate dirt, dust, and grime over time. Budget for cleaning services or invest in anti-dust or self-cleaning enclosures.
Repairs and replacements: Weather conditions, vandalism, or accidents may require repairs or even replacements.
Warranty and service contracts: Many signage providers offer extended warranties or service contracts, which can be worth the extra expense to cover unforeseen repairs.
8. Total Cost of Ownership (TCO)
Outdoor digital signage an upfront investment, but it’s important to also calculate the total cost of ownership (TCO), which includes:
Initial hardware and installation costs: consider screens that can last 5 to 10 years
Ongoing software and content management: Monthly or yearly fees for the CMS and network connectivity
Content creation and updates: Seasonal or promotional updates should be factored into your annual marketing budget
Maintenance and repairs
9. Return on Investment (ROI)
To justify the expenditure, it’s essential to track the return on investment (ROI) of your outdoor digital signage. Metrics to monitor include:
Increased foot traffic: Are more people entering your property and staying longer?
Sales uplift: Do sales correlate with campaigns displayed on outdoor signage?
Interactive Screen Usage: Are people interacting with your screens more looking for more information to shop/dine/stay longer?
Advertising Revenue: can you sell advertising on the screens to offset some of the costs?
With digital signage, the ability to adapt content in real time allows you to experiment and optimize what works best for your audience, improving ROI over time.
Final Thoughts
Budgeting for outdoor digital signage involves multiple layers, from hardware and installation to ongoing maintenance and content management. By carefully evaluating your goals, choosing the right hardware, and planning for long-term costs, you can create an outdoor digital signage solution that delivers value, engages customers, and enhances your retail property’s appeal.
Invest in the right tools upfront, and your outdoor signage will serve as a dynamic, long-term marketing asset.
Interesting in walking through your budget or your project needs? Contact RoveIQ to meet with one of their experts for more information: Click here
