Making Money From Digital Signage
Digital signage is being used to promote businesses, now some entrepreneurs are using this technology to create a residual income and they have queues of customers.
Occasionally businesses are put off deploying digital signage this could down to the business owner thinking they have to have lots of computer experience and rather than waste time creating ads they would rather pay someone else to do that for them, this is where this group of entrepreneurs are creating a huge demand.
They are targeting shopping malls that have a high foot fall, here they are certain that their added marketing activity will increase profits for local businesses. They are deploying large screens with a media player built in, these screens are then connected to a secure wireless network that the advertising company controls allowing for day parting (displaying ads early in the morning for restaurants offering breakfasts, etc). Then the ads are sold to each business in the shopping centre from US$150 per week to $500 per week depending on how long the advert is and if they are using day parting as well as a regular add. The hard drives on these media players will hold in excess of 500 adverts, so imagine if you sold 250 ads at US$150 (you can do the math if you want) this results in a total weekly revenue of $150 x 250=US$37,500. Now if you consider that at each location cost will be $1000 including the screen, media player and network connection and 20 locations are deployed in the mall you can see from the first week how profitable this business is.
Over a period of 1 month, the company will have turned over US$150,000 based on the initial investment of US$20,000 for the hardware, plus the time for someone to create the ads, there are many people who charge from $50 to $100 per ad so including this figure a total of $1100 per location, based on 20 sites within the centre equals US$22,000 netting a first months profit of US$128,000.
Now all the hardware is paid for here is the period that will make the most profit. Based on the above information you can work out that the turnover would be $150,000 and the only outgoings would be any new ads, but this would compensate you as you would have additional revenue. So the profit for this month would be $149,900 deducting $100 for the internet connection.
This could be a lucrative business, looking at the above figures, if you got 250 customers each paying $150 (the minimum) per week, over a 12 month period the business would be provide a profit of US$1,776,900 whilst working on this location you could target other locations in your area and then after 2 years of trading (providing you maintained the above minimum figures) you could sell the digital advertising business for a cool US$7 million per location using this business model.
LCD Enclosure Global are specialists in the field of indoor and outdoor digital signage, being the worlds leading manufacturer of .
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