When a hotel, restaurant, shopping mall, university, event venue or other commercial establishment is considering the implementation of a digital signage network there are three common objections which we hear consistently. Namely that the return on investment is uncertain, that the systems have unproven advertising effectiveness, and that the technology has not yet proven itself to be effective.
Fortunately, these objections are becoming easier to counter due to the maturation of the digital signage industry. As is the case with many new technologies, digital signage suffers from objections left over from the days when it was first introduced, which continue to haunt the industry today. By closely examining these common objections, you will see that digital signage has become, and will continue to be, a reliable, scalable, cost-effective investment for your business.
Uncertain ROI
Many potential benefactors of digital signage systems often object that ROI will not be high enough, or will not provide good enough return on investment to justify implementation. This sentiment was typical when digital signage was first being marketed due to being based on rapidly-changing technology and being a new medium to be explored. Since the advent of digital signage technology, however, many studies have concluded that digital signage can be effective in promoting customer retention of displayed information. This, in turn, aids in brand recognition, better customer experience and less costly customer service. The downward movement in prices for LCD and Plasma technology is also pushing up the ROI of digital signage systems, and potential ROI will continue to rise as the digital signage industry matures.
Unproven advertising effectiveness
It is common with new technologies for rumors of its ineffectiveness to persist long after the technology has taken root and matured. In the case of digital signage, many of its original detractors have claimed that the effectiveness of out-of-home television is questionable. However, in more recent times, advertising budgets have been consistently shifting away from traditional ad-mediums like radio or in-home television, and toward outdoor advertising, pushing the growth rate of this new advertising segment in the double-digits.
Lack of proven technology
This is yet another objection based on problems with the very first digital signage systems which has little to no bearing on systems being deployed now. Like any new technology, LCD and Plasma televisions had some initial manufacturing and design flaws which have been worked out over many model iterations. This is also true of the hardware that now runs digital signage systems: where originally these systems may have run on DVD players intended for in-home use, the more modern options allow for centralized management via secured servers which can administer anywhere from one screen to thousands with only a few clicks required to change entire programming schedules. This new technology is based on best-practices borrowed from established industries and allow for greater control and flexbility while providing increased security and fewer interruptions or “downtime”.
It is important to keep in mind that the software and hardware on which digital signage is based has been in constant development for several years and what was true a short time ago may not be true today. It is important to ask your digital signage provider what they currently have in development for their signage systems, and what hardware and software they currently use to administer the systems.
