How to set up a digital signage network (part 1)

Digital signage advertising networks are extremely profitable, if done correctly. The concept is to find high-traffic locations to install digital screens and sell ad spots to people who want to advertise in their area, without spending an arm and a leg. Yet still get the exposure they normally would advertising in traditional Medias such as a local newspaper or by delivering flyers. Let’s use a 10 screen network as an example. First you need to find 10 high-traffic locations where people dwell for a period of time such as;

• restaurants
• coffee shops
• hotel lobbies
• gyms and spas
• hospitals and clinics
• shopping malls
• supermarkets and convenient stores
• and other such locations

All within a 2 mile radius from one another. Proximity is important as clients won’t advertise in areas they don’t serve. This means your entire network of 10 screens should be within a 2 to 3 mile radius. Exceptions apply depending on variables such as if you are doing this in a large city or a small town, its size in area, as well as its population. The price you charge per ad spot also depends on these variables.

You may also decide to charge advertisers per location at a lower price, or for all 10 screen locations in your network for a higher price.

Here are the 2 different business models;

Business Model 1

Let’s say for example you charge $300 per year for 1 location, and you sell 50 ads per location. Your net income would be 50 ads times $300 per ad = $15,000 per screen location. Multiplied by 10 locations equals to $150, 000 per year in revenue.

Business Model 2

If you charge $2500 for all 10 locations, then 50 ads multiplied by $2500 per ad would also yield you $150, 000 per year in revenue. Even if you only charge $1500 per year for all 10 locations, multiplied by 50 ads would generate you a $75,000 yearly income…Not bad.

The great thing about digital signage advertising is the renewals, most of your clients will be renewing on a yearly basis, and that’s called passive income…sweet!

Once you’ve secured your 10 host locations, install a TV with a media player in each location. Then advertise your pricing, available locations, and contact information within your own network, as well as adding a few advertisements on behalf of your host locations and their products.

Remember, this is digital signage, you can also make money servicing fast food restaurants who understand the need to go digital, by providing them with digital menu boards and monetizing on hardware such as;

• the TVs
• brackets, mounts
• and installation

as well as the back-end services such as;

• content management software
• menu design
• monthly maintenance fees
• updates and consultations

Averaging a few thousand dollars per job.

Make sure you have a website advertising all your services as well as pricing, a PayPal account so you can accept payment, business cards and all necessary marketing tools.

Also be sure to strategically calculate your loop time.

In digital advertising, loop time is the length of time in which all your combined ads run from beginning to end. So if you are placing ads in a convenience store, note the average amount of time one spends in a convenient store is about 5 minutes. 5 minutes times 60 seconds per minute = 300 seconds. Divide 300 seconds by 10 seconds per ad = 30 ads. You can fit 30 ads in a convenient store, whereas in a gym, the average person spends an average of 60 minutes. So 60 minutes per hour times 60 seconds per minute equals to 3600 seconds, to which you can fit 360, 10 second ads, in a gym if you play each ad once. As per in a restaurant the average dwell time is 45 minutes.

There are many different ways to setup an ad network, calculate ad spot prices, and approach local business owners so as to install an ad screen. Call us for a consultation on what your approach and business model should be.

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Imagine owning a business where every other business is your potential customer, in an industry with no limit on how much you can earn. Get started and take advantage of our 10 screen network package.