Digital signage advertising is rapidly becoming one of the critical components of the advertising mix of today’s complex advertising environment. Due to its capacity to include aesthetics, movement, and timely information updates, digital signage has revolutionized the way organizations interact with their target market. However, one of the most frequently asked questions, which businesses and advertisers encounter, is, “What are the digital signage advertising rates?” These rates will be discussed in this article with regards to factors that affect them and the average cost of digital signage to help advertisers get the most out of their advertising dollar.
What is digital signage advertising?
Digital signage refers to the application of a liquid crystal display, light-emitting diode, or projection screen for the purpose of advertising, informing, or promoting. Appearing in sites such as shops, airports, cafés, and terminals, digital signage offers a unique opportunity to share messages with the population in high-flow environments.
The versatility and effectiveness of digital signage make them attractive to advertising companies in markets filled with competitors. This is a major advantage over other forms of advertising, such as billboards or posters, because the information displayed in digital signage can be dynamic, including videos, real-time data feeds, and/or interactivity.
Understanding the Costs of Digital Signage Advertising
Due to the fact that there are numerous factors determining digital signage advertising price, it is impossible to speak about some specific price per media space. In general, costs vary from $100 to $2,000 for one week per screen and depend on the location, type of screen, as well as the number of people addressed. In the next sections, we will discuss the major considerations that define these rates.
1. Positioning of the Digital Screen
High-Traffic Areas:
It is noteworthy that the location of the screen has a great influence on the advertising rates. Those digital signs in areas such as airports, shopping malls, and business districts cost a lot because many people get to view the messages.
For instance, the publicizing on a digital board in Times Square New York may be as high as $1000 per day, while a similar publicizing on a digital board at a suburban mall would be $200-$500 per week.
Targeted Locations:
Low rates with tightly knit targeting can be found in gyms, professional buildings, etc., where the number of potential viewers is much lower. These places may cost $100–$300 per week, depending on the size of the place and the target market.
2. Screen Size and Type
The size of the digital signage screen, and specifically, its resolution, determines its advertising rates.
Large-Scale Displays:
Screens with a size of over 100 inches, including Jumbo Tron screens that most are familiar with from large sporting events or major concerts, are the most costly. For such exceptional placements, one can anticipate rates more than two thousand dollars per week.
Small to Medium Displays:
Screens that are 32 to 55 inches are usually in restaurants or retail stores, and their rates are relatively cheap, ranging from $100 to $500 per week.
Interactive and high-resolution screens:
Those that are either interactive or have 4K have higher rates, mainly because the engagement and quality of the viewers are better than those with normal screens.
3. Content Duration and Frequency
Digital signage advertising usually goes in cycles where different ads get aired for equal time. Some are charged according to the frequency and duration of the ad spot.
Duration:
Almost all digital signage networks divide their available ad slots into time intervals of 10, 15, or 30 seconds. This is for a 15-second ad placed on a screen where it is aired once every 5 minutes continuously and costs between $200 and $500 per week, depending on the screen.
Frequency:
Frequency, that is, the number of times your ad is placed within an hour, a day, or a week, costs more, for instance, placing your ads every minute. Some networks let the advertisers buy the screen time, and this makes the fees very high, but the ad will be the only thing that viewers will see for the whole duration of the purchased time.
4. Audience Metrics and Analytics
Most of the advanced digital signage solutions give information about the target audience, time spent on the content, and engagement rates. The rates vary, with screens in areas that have had high engagement or the target demographic costing more.
For example, advertising on a screen with a highly sophisticated audience counting system in a wealthy part of town may cost twice what it does in a less profitable area of town, where the screen does not have similar capabilities.
5. Additional Costs
In addition to placement fees, advertisers may need to budget for:
- Content Creation: Professional video or motion graphic creation can cost between $500 and $5,000, depending on complexity.
- Software and Integration Fees: Some networks charge extra for integrating ads into their system, with fees ranging from $50 to $200 per campaign.
- Long-Term Discounts: Advertisers booking for several months or more often receive discounted rates.
Maximizing Your ROI on Digital Signage Advertising
To ensure you get the most value for your investment in digital signage, consider the following tips:
- Target the Right Audience: Choose screen locations that align with your target demographic.
- Invest in High-Quality Content: Compelling visuals and messages are essential for capturing attention.
- Negotiate Contracts: Many networks are willing to negotiate rates, especially for long-term commitments.
- Leverage Analytics: Use data to measure the performance of your campaigns and refine your strategy.
Examples of Digital Signage Advertising Rates
Here’s a quick snapshot of typical rates:
| Location | Screen Size | Weekly Rate | Ad Duration |
| Shopping Malls | 55 inches | $300–$800 | 15 seconds |
| Airports | 75 inches | $1,000–$2,000 | 10 seconds |
| Gyms | 42 inches | $100–$300 | 15 seconds |
| Transit Stations | 65 inches | $500–$1,200 | 15 seconds |
Conclusion
Digital signage advertising can be a powerful advertising medium for any business because of its flexibility. As we have seen, rates differ greatly depending on location, screen type, and the like, but having this knowledge is crucial. If cost is properly assessed and opportunities are targeted properly, then advertisers can really benefit from the power of digital signage and get an incredibly high ROI.
