DigiAds brings your ads to life

Digital Signage Return On Investment (ROI)

Like any expense, determining your return on investment can be a difficult thing to do, but we believe that Digital Signs & Digital Advertising makes a very compelling case in helping you do just that.  First and foremost, Digital Signage Advertising CPM is the lowest in the industry, ranging from $2 to $8 per thousand viewers.  If you are not familiar with CPM, click here to learn how to calculate it.

Some other things to consider and calculate include:

• If you currently spend money on traditional advertising and through the use of Digital Signs either discontinue it or do less of it, determine what you would have paid, less the cost of your digital signage system or advertising
  
• Each time you change your ad or run a new one with traditional advertising, calculate the time it would have normally taken using other methods before your changes or new ads are run versus running your ads on digital signs and determine what you gained in terms of bringing customers into your store versus informing them about your sales, promotions and specials while they are already in your store
  
• Compare the costs you would have incurred to run varying ads using traditional advertising versus the 24-48 hour update time available to you with digital signs
  
• Consider the time wasted, waiting for your ads to be published in traditional advertising versus time spent with digital signs and calculate how many more specials and promotions you can run year round using Digital Signs
  
• Take into account that Advertising with other sources targets customers by zip code or zone and relies heavily on your potential customer seeing or hearing your ad versus the ability to target customers in the store, when they are interested and spending money

Calculating Cost Per Thousand (CPM)

The main standard in the Advertising Industry for comparing costs or determining what you are actually paying per customer is called CPM, or Cost Per Thousand.

Calculating CPM is easy to do, but as you'll find with some sources of advertising, they will try and make it difficult for you to do so or will try and pass it off as unimportant. However, we believe that being open and honest about CPM is the only way to ensure customer satisfaction and therefore loyalty.

First, you need to know exactly how much you are paying for the advertising itself, minus the cost to create, setup or edit your ads. Second, you need to know how many viewers or readers or listeners will actually see, read or hear your ad. Be careful not to confuse readers with circulation if you are comparing print advertising costs or make sure to use average listeners or viewers (for radio & TV), not their peak numbers. Finally, take the actual cost of advertising divided by the total number of readers, listeners or viewers, divided by one thousand.

A print advertising example:

Actual Cost of Advertising (1/2 page): $600

Number of actual readers (circulation, not households): 30,000

CPM = $600 / (30,000 / 1,000)

Cost per Thousand (CPM) readers = $20.00

For a specific look at our advertising rates, click here