Creating wealth From Digital Signage

By | May 11, 2011

Digital signage is being used to showcase corporations, now several entrepreneurs are using this technology to generate a residual salary and they have queues of buyers.

At times firms are put off installing digital signage this could down to the business owner thinking they have to have lots of pc practical experience and rather than waste time building ads they would rather pay someone else to do that for them, this is where this collection of business people are generating a large demand.

They are looking for shopping malls that have a large foot fall, here they are certain that their added marketing and advertising activity will boost profits for local firms. They are rolling out large displays with a media player built in, these screens are then connected to a secure cellular network that the advertising company controls allowing for day parting (displaying ads early in the morning for places to eat offering breakfasts, etc). Then the advertising are sold to each small business in the shopping centre from US$150 per week to $500 per week based on how long the advertisement is and if they are using day parting as well as a regular ad.  The hard drives on these media players will hold in excess of 490 adverts, so imagine if you sold 200 ads at US$145 (you can do the math if you want) this results in a total weekly revenue inexcess of US$37,500. Now if you consider that at each location cost will be $980 including the screen, media player and network connection and 15 locations are stationed in the mall you can see from the first week how money-making this business is.

Month one.
Over a period of 1 month, the digital advertising company will have turned over US$150,000 based on the initial investment of US$20,000 for the components, plus the time for someone to develop the ads, there are many people who charge from $40 to $100 per ad so including this figure a total of $1100 per place, based on 20 sites within the mall equals US$22,000 netting a first months revenue of US$128,000.

Second month.
At this point the electronic hardware is paid for and now you will make some real money. Based on the above information you can work out that the turnover would be $150,000 and the only outgoings would be any new ad creation, but this would compensate you as you would have additional sales. So the profit for this month would likely be $149,900 taking out $100 for the internet connection.

This could be a money-making business, looking at the above statistics, if you got 250 customers each paying $150 (the minimum) per week, over a 12 month period the company would be provide with a income of US$1,776,900 whilst working on this place you could target other destinations in your area and then after 2 years of trading (providing you maintained the above minimum figures) you could sell the digital marketing business for a cool US$7 million per place using this business model.

LCD Enclosure Global have worked with many integrators who have started their business off just like this, these installers understood the need to protect their digital signage hardware with a rugged LCD enclosure.