As we've discussed in past articles, there are a number of business models for deploying a digital signage network. One of the most common is an ad-supported model. By placing screens in a variety of targeted retail settings, an operator can generate revenue through selling advertising spots. While this is a common model to pursue, it's also difficult to do it well. There are several factors that can make or break your success; arguably, the most important is sales proficiency.
Signage network owners must be able to sell - or hire others who can - ad spots. It's not as easy as it sounds. In today's article, we'll briefly discuss the role of content and how viewers can become anesthetized toward it over time. Then, I'll explain the importance of sales when approaching retail store owners and advertisers.
Stale Content And Customer Desensitization
Most signage network operators are aware that content creation, and the delivery of that content, both play an enormous role in lifting sales and getting viewers to take action. The problem is that content becomes stale if it is repeated over and over ad nauseum. And stale content does not convert; it does not lift sales; and it most certainly does not motivate a passerby to take action.
Here's the challenge if you're pursuing the ad-supported model. Your advertisers want results. The venue owner wants results. The only way for you to deliver those results is by filling the distribution pipeline with stimulating content and ads. At times, both will be provided either by the advertisers or the retail store owner (or venue landlord). Other times, you'll need to outsource it to a creative agency.
Technically, this is not a part of the selling process. However, it does represent the framework upon which the ad-supported model - indeed, all signage network models - are built.
Selling The Idea
The retail venue in which you want to place your screens need to be sold on the idea before you approach advertisers. A digital signage network owner who is skilled in sales negotiations can develop an arrangement with the venue owner that divests some of the financial burden and risk. Keep in mind that the equipment (i.e. hardware, software, media players, etc.) is expensive. So, too, is deploying the screens throughout a location. And once the screens are installed, removing them requires time and effort.
Ideally, your sales team will be able to negotiate a contract in which the venue owner agrees to share the cost of leasing the equipment. They should also agree to a long-term deployment (which is easier when they're financially invested).
Pushing Early Advertisement Spots
Selling ad spots in the beginning stages of a network deployment is always challenging. If you already have a fleet of screens deployed in the same vertical, convincing new advertisers to join is a simple matter of showing them your past results. However, let's suppose you don't have a signage network activated yet. Your job is considerably harder.
In this case, your sales and marketing team should consider approaching a media company that already has exposure to a given vertical. For example, an advertising firm that works closely with regional grocery stores to develop their marketing collateral can provide access to their clients. Partnering with the advertising firm makes the job of selling ad spots much easier (for that vertical).
Launching Your Signage Network
Once you have secured a venue (or, a chain of them) for your screens and have partnered with a media company in your chosen vertical, you can launch your signage network. But, your job - and that of your sales and marketing team - is far from over. The success of the ad-supported model relies upon having the ad distribution pipeline filled. Advertisers will come and go. When they do, they need to be replaced.
Selling ad spots on your signage network is an ongoing challenge; it takes a lot of work and requires an aptitude for negotiating mutually beneficial contracts. This is an area where your marketing team can provide enormous value.
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