How Large A Role Should Advertising Play In Your Digital Signage Loops?

It's a common goal: investing in a digital signage network with the hopes of filling the screens with nonstop paid advertising. The cost of the network is recouped through advertisers' payments, and eventually, every dime represent a profit. Unfortunately, this perspective is misguided. It misses a few critical components regarding what drives a DOOH platform's success. The question is, assuming ad revenue is part of your digital signage business model, how much advertising should you include in your loops?

In this article, we'll take a close look at the goals you hope to achieve with your DOOH network. We'll also explain the reasons a continuous ad loop is likely to underperform a balanced content strategy. Lastly, we'll explore the right mix of content and advertising for your audience.

Even if your main objective is to generate as much ad revenue as possible, it's important to realize this can only be accomplished if people are watching your screens. If your screens are ignored, advertisers will eventually note the lack of response and pull their spots. This will not only reduce the revenue produced by your network, but also leave gaps in your playlists.

In order to encourage people to watch your digital signage screens, you must give them a compelling reason to do so. The technology is no longer novel. What would grab your audience's attention? What would motivate them to continue watching your clips rather than immediately looking away?

Your DOOH playlist must include content your viewers find engaging. Consider your network similar to television; an hour-long show is similar to a digital signage loop. The programming includes several commercial breaks during which advertisers hope to capture and hold your attention. If the TV networks streamed nonstop advertising, no one would watch. Likewise, if you're trying to generate ad revenue from your DOOH screens, you need to create a balanced content strategy.

Blending content with advertising offers two key benefits. First, it gives you the ability to present your screens as a platform through which advertisers can reach their respective audiences. Because your digital signage playlists include content that appeals to viewers, advertisers will know their ad spots will be watched rather than ignored.

Second, an engaged audience is more likely to respond. Keep in mind that it means little to advertisers that their clips are seen if those clips fail to produce a response. The content in your loops brings viewers in, informs or entertains them, and makes them more receptive to the ads.

Every venue is unique based on its audience, which will determine the right mix of content and ads. For example, the optimal mix within a bank will likely be different than that used in a bar or restaurant. A retail store might use a different formula than a museum or hospital.

The only way to identify the ideal mix of content and ads for your loops is to conduct tests with your audience. Use network television programming as a baseline. There is an average of twelve to eighteen minutes of advertising for each hour of programming (i.e. content). This translates into twenty or thirty percent, respectively. Start there, and make adjustments to the split as you observe how your audience reacts.

Ideally, you should keep your digital signage loops as fresh as possible. Your audience should not be presented with the same content clips twice. Thus, if the average shopper or visitor comes to the venue once per week, you should have new clips created weekly.

Unfortunately, there is a significant cost involved with creating new content for your network. This cost will likely have a large influence on how often you are able to do so. Realize that new clips are important to introducing viewers to ads, even if their creation is dictated by a limited budget.