We are living in a digital age where everything has changed its initial form. Same goes with the advertising industry. From ancient cloth made a poster to modern digital billboards, the advertising industry has seen a mega evolution as well as revolution. Businesses today are naturally inclined towards digital billboards and out of home advertising mediums due to immense benefits. Businesses and brands today are data-driven, competitive and fast-paced. However, business is the second name of profit making. There is no room for personal likings or preferences. Therefore, businesses perform cost-benefit analysis of their every move. They do so by using several parameters and various benchmarks. One such performance measuring indicator is ROI or return on investment.
Return on investment is basically a ratio calculated between the Net Profit (NP) or you can say the benefit of an investment and the cost of investment. The resultant figures are expressed in terms of percentage. Cost of investment means the opportunity cost for certain investment. A business has several investment options to grow. And opportunity cost means the cost that you forgo while making current choices.
ROI calculation for digital signage is not a piece of cake rather it’s complicated. Why? Because it might not relate to purchases only. However, we can measure the efficacy of digital sign campaign by a number of factors. Also, we can ascertain whether investing in digital billboard advertising worth ROI.
Digital advertising has two main motives
The increasing number of sales, this motive is more or less the primary goal of any business
Raising brand loyalty or awareness, mostly large scales businesses aim at this objective as well
The second point can’t be quantified in monetary terms. We really have no yardstick to absolutely assess ROI on a digital billboard when we talk about increasing brand loyalty. We really can’t trace exposure leading to actions directly. However, we can only estimate ROI on reported and approximate measures.
Let us explain you very clearly that return on investment accounts for various dimensions. We will look at each area one by one. Improvements and sustainability of each area indicate yes the digital billboard advertising worth ROI. You need to look individual as well as overall performance. Sometimes a seasonal dip may cause slight variation in revenues but as long as they are offset in the long run it’s completely ok. Don’t be hasty in calculating ROI. It’s not appropriate to calculate on a monthly basis. The recovery of cost may start appearing within 3 months. So, usually one year is a suitable time frame. Digital billboard advertising is definitely worthy
By strategic goals, we mean the long term objectives of the business. Prior launching advertisement campaign be crystal clear what you want to achieve from advertising and marketing? Do you want to benefit your employees and want to keep them updated about company processes? Or you are aiming at customers to expand brand awareness? You may simply urge to increase revenues in key areas. This goal defining strategy may sound simple, but be sure that ROI begins in the initial planning stages of any advertising campaign.
To determine the worthiness of ROI your strategic goals are basically the scales to determine the success. For instance, if your objective was to increase sales at any location then you will be using revenues and cost of sales to determine ROI. However, if your goal was to free up the worker time than you cannot account it for monetarily. So never take this return on objective part in ROI calculation.
If the main aim of the digital billboard campaign was to increase sales then you should surely determine what effect digital signs have on your sales figure. This is actually a sales ROI. Simply calculate the number of transactions and value of these transactions. Now that you have one final figure, compare it with the sales ROI figure you have before employing digital billboards. Do you find any improvement in Sales ROI? If yes than digital billboard advertising is adding value to your business. However, if the sales ROI is deteriorating or unchanged than you need to consider other possibilities as well. It is quite possible that digital billboards are contributing to your business in non-monetary forms.
By diversification, we mean that business investment in different ventures. But diversified advertising means adopting different mediums or advertising platforms like social media, digital LED display or digital billboards, and the conventional radio, TV mediums. Sometimes digital signs may not result in significant monetary earnings but they are still essential. Why? To compete in the business world. Brands today are striving hard to make their presence everywhere. Now imagine if only considering monetary aspect you remove your digital billboard advertising what will happen next? The customers gradually will feel your competitor is more powerful than you. And with the passage of time, your brand loyalty will fade away. So, as long as thresholds are achieved you are good to go with digital signs and digital billboards.
Other than monetary benefits digital signs offer great tangential benefits. They may literally change the way a customer perceives about your business. Also, digital signs are great motivation boosters. They can efficiently inform employees about new developments. This largely reduces the time in sorting answers pertaining to customer queries. As a result, quick response fosters positive feedback and overall enhanced customer satisfaction. Digital signs are really helpful in decreasing operational costs.
Digital signs are the best medium for marketing and advertising since they reduce operational costs. They immensely save the time of your workforce. Since the entire process is automated so employee turnout does not remain the main issue. Why? Because employees know well that supply of workforce is more than demand so they don’t exploit you. Additionally, you can divert skillful labor to core business activities rather than designating them to attend queries and calls. Bear in mind smart working and smart allocation of resources is instrumental for any business and with digital billboard advertising we can achieve all this. The decreasing cost figures and increasing monetary benefits should be included in the ROI calculation.
Digital billboards are instrumental in peer to peer marketing. Never ever underestimate the influence of positive feedback on your business and thus ROI. Today customers are smart than ever before. They thoroughly check customer feedback and reviews while making choices. Digital signage is undoubtedly an awesome medium in staying relevant to all such conversations. They leave an everlasting impression on the customer’s mind. For instance, while going to college you noticed an enticing LED billboard showcasing MC Donald’s Mc Flurry ad at a discounted price. On reaching college you get to know that your friend is craving for a yummy dessert. You can instantly recall the LED billboard and may suggest her the ongoing deal. Yes! The LED billboard advertising worked its charm.
The customer today is the king and want to feel special. But even many progressing businesses overlook this point. Let us guide you a bit in this regard. Remember customer feedback forms an essential part of digital signage ROI. Make customers feel special by asking their opinion relating to your products and services. Give them a chance to provide valuable feedback. This attitude provides them a feeling of ownership that your brand will provide. Today interactive digital signs have massively gained the public attention. They feel more excited about conveying their thoughts and preferences. In fact, it is a great tool to execute innovation timely. Businesses who are more responsive to customer needs excel and experience better digital signage ROI.
By now we are fully convinced that LED billboard advertising is a multidimensional process. It involves many variables that make it hard to ascertain absolute digital signage ROI. But still, there are ways we can adopt to measure digital signage ROI to a certain extent. Over time people have developed ROI measuring models that are generally accepted by people at large. Whether they are absolutely real or not, they are at least agreed upon.
Coupon codes are definitely a smart move. They can greatly help you in tracking the ROI of digital signage. How? Whenever the coupon code is scanned or entered it will be an indication that a human impression is turned into an actual customer.
some websites provide you a tracking opportunity. They will give you a specific number. You can effortlessly track the traffic with Google Analytics and measure digital signage ROI. Remember you have to post the number on the LED billboard.
provide billboard specific email address. The email id should be for billboard audience only. So, whenever customer approach through this email id you get notified.
This hack enables the smartphone user to have the coupon immediately via SMS or through URL visit.
Small businesses definitely mean restricted resources but that really doesn’t mean that LED billboard advertising is a big no. Of course not, they can still reap the benefits of digital sign advertising by part-taking. Small to medium enterprises can’t easily spare thousands of bucks to digital advertising. They really require precise and reasonably accurate data for making informed decisions. This will surely help them in understanding what kind of ROI they will be earning. For that matter read below about best possible approach
Pick a reliable platform that gives you a thorough insight while booking your media assets. This includes TV, radio, transit, Cinema, print, billboards, etc. you should know well your money trail and what you will possibly earn in return.
Define the path of the call to action to materialize potential customers into actual buyers. One of the most common practice is to divert the traffic to a certain website offering various discounts like say 50% off. Whenever the viewer log-in the website you can realize that digital advertising is playing its part.
Always do a sample testing or you can say experiment with the digital billboard advertising. It is one of the finest ways to track down any changes in ROI. Run one kind of billboard for a month or a two. You can even stretch the period up to six months. Track down the revenue or call-to-action engagement. Later introduce some variation or tweak the style and observe any changes in ROI. Experimentation is risky yet you can rightly get to know the customer psyche and thus improved ROI.
Small businesses should always consider reinvesting options when they start earning a handsome ROI. Why? Because more opportunities are available to high budget businesses. It is a simple law of attraction that money attracts money or money-making opportunities. The small business may decide to hire multiple LED billboards to grow their business. They even can figure out other advertising options like TV, print, etc. But let us tell you that by far digital billboards have optimum viewership.
You can definitely regard digital billboard advertising campaign successful as long as you have earned the amount you have invested. Or in other words, your ad campaign is successful if you have successfully recovered the cost. Bear in mind that some businesses may not feel this victory as an accomplishment. For instance, if they spend $5000 and earned back $5000. It’s more like achieving the breakeven. But remember monetary figures don’t account for brand loyalty and brand awareness you will be enjoying in upcoming months.