The global digital sign industry is a $24 billion-dollar industry, that continues to grow in cities both large and small. We have already discussed purchasing signs to rent out ad space, now let’s discuss creating a digital sign advertising network. This article is also helpful for those who are unclear about what an ad network is.
What Is A Digital Sign Ad Network?
There are a variety of ad networks to choose from, and you may utilize more than one. For example, online ad networks and offline networks. When speaking of Digital signs, there are two options:
Sign networks—this term refers to multiple signs that are owned by a single business and used only to post their own ads and communications. These signs could be located on-site (interior or exterior), throughout a city or region. They could also be located nationwide or globally.
Advertising networks—this term refers to multiple signs owned by a single business that only posts other businesses’ ads OR who monetizes their sign by renting out ad space in between their ads. These signs could be located inside, outside, throughout a city or region, nationwide or globally.
Won’t Businesses Just Purchase Their Own Signs?
Maybe, maybe not. Oversized signs are an investment of at least $10,000, so many businesses test for proof of concept before investing in their own. Most who rent ad space, don’t have their own sign. Even with their own sign, they may continue to rent ad space from you.
Not every business is positioned in a prime location. So, renting ad space in other parts of town can be highly effective. Or they may only utilize your digital sign advertising network at local events such as concerts, charity events, marathons, and other special events.
This includes renting out nationwide and global ads for trade shows, industry events, or to target a larger demographic.
How Many Signs Do I Need To Launch My Business?
You can start with just one sign! The more the merrier, but we all start somewhere. The brands you work with like to have options, so it is ideal to place signs in key places throughout your city. Maybe start with one or two and invest in more as the demand grows.
For example, you have likely seen a variety of signs when walking through a shopping mall. The ads are mostly for businesses in the mall, but every ad you see is paid for. Likely, through the mall’s paid ad network.
Where Should You Mount Your Signs?
High-traffic areas are ideal. Not to worry if you don’t have a brick-and-mortar location, as you can scout your city for rented sign space. As your inventory grows, pay attention to what locations your clients are asking for.
This might include:
- Freeway billboards
- Roadway signs
- Parking lot signs
- Sides of buildings
- Rooftops along train routes
- And more
Finding interior places to rent signs can be challenging, as most buildings and businesses will create their digital sign advertising network. Don’t forget to check your local ordinances to determine if a sign permit is required, which often varies by city and county.
What Type Of Signs Should You Invest In?
There is a time and place for scrolling signs and low-definition displays, but this isn’t it. The more versatile your sign is, the more you can charge per impression. In addition, your clients will expect to be able to post their ad in high definition. HD signs can post every hex color available for lifelike images, videos, graphics, and motion graphics.
How Much Should I Charge Per Impression?
Most networks charge per impression, but your price should be competitive within your local market. Find out what your competitors are charging and consider offering a lower rate to establish your client base. If you want, you can grandfather your initial clients into your lower pricing, or not. If you do, outline the ongoing terms and conditions.
What you charge varies by how long each ad is displayed. This might be seconds, minutes, hours, or days. You may even offer weekly or monthly options, which is popular for freeway billboards. Feel free to charge more for rush hour, weekends, holidays, and other high-traffic and in-demand times. Most networks also charge more for prime locations or for larger displays.
Most networks charge between $9 and $32 per impression, or $750 to $2,000 per month. Signs in major cities cost significantly more. For example, Time Square signs cost between $5,000 and $50,000 per day.
How Do I Program My Digital Sign Advertising Network?
That part is easy! Your sign comes with intuitive software that allows you to preprogram your ads and update them in real time. As your business grows, you can invest in an integrated ad network CRM. Transitioning to a CRM empowers you to manage multiple business transactions in one software solution.
How To Market Your Ad Space?
That’s easy, use your sign! Once your sign is live, offer rock-bottom prices or donate ad space to get started. In between your starter ads, post your own “Your Ad Here” signs. Do more than post text, have a digital sign designer create a head-turning display. Be sure to add your contact information to the sign.
Also, utilize local online marketing, but your sign should be your primary source of generating leads.
What Upsells Can I Offer?
It is a great idea to hire a team member or go-to contractor who specializes in digital sign design—both as an upsell and to better serve your clients. While many of your clients will provide their ad, some may require sign design. Or some designs may post pixelated in your mock-up. For example, for a cohesive approach, a business may send over an ad they used on social media. However, it may be too small to properly format on your display. Or the size and scale may not be appropriate. For example, your sign may be rectangular, and their design may be square. In this case, you can refer them to your sign designer.
In Need Of A New Sign?
If you are ready to launch or expand your digital sign advertising network, we invite you to reach out to Mega LED Technology. We build our signs from scratch and are the partner of choice for networks throughout North America! ss
