Perhaps the biggest concern when starting a new business or when implementing those that are already operating is the return on investment, since every cost is accompanied by risk. In the minds of entrepreneurs, questions like how will I recover my investment? When will I reach the break-even point? How will each new resource support my business and how will it translate into money? and more; turning, in the worst cases, into an incessant and ruminating doubt, which is understood because a return on investment cannot always be calculated in a tangible way or, a sufficiently objective metric is not always found to evaluate how each tool will contribute to the business correspondent.
Fortunately, there are elements whose marketing contribution can be measured and this is the case of giant advertising screens, from which an ROI (return on investment) expectation can also be built because, in addition to helping organizations achieve certain objectives , they can constitute a business in themselves depending on the focus they have. At iLED México we are aware that what is not measured has little chance of improving, so we present a series of considerations so that you can specify the return on investment of your advertising LED screens.
What is the Return on Investment?
Marketing is, in essence, the set of processes and notions applied so that an organization achieves sufficient or planned benefits, in the best way and in a prudent interval of time. So, the mission of marketing tools in a business is profitability and one of the most used concepts as part of its operation is the Return on Investment, which is basically the comparison between the resources invested and the income obtained. The most basic formula for its calculation is the following:
ROI = (Profits - Investment) * 100 / Investment
In this formula, the most common is that the benefits are quantified after taxes. By itself, this notion seems to be of little use, since it is not taking into account the time it is taking for an investment to produce its benefits, but for this purpose the Balance Point is used, which is the estimate of the moment in which an investment investment covers its fixed and variable costs, that is, when income and expenses are at the same level and, therefore, there are no gains or losses.
As a promotional tool, the most practical way to get your return on a giant outdoor LED display is through its use by advertisers as advertising space. To achieve the best results in the ROI of your giant screen, from iLED México we recommend you take into account the considerations that we will describe below.
Sets the value of your screen location.
The monetary value of advertising according to the area where your screen is located is mainly determined by its reach, that is, the number of people that each message it projects can impact. This estimate includes highly important derivative elements, such as the most common demographic characteristics of potentially reachable people, the amount and rate of human traffic in general, the direction in which your screen faces said traffic, and the quality of the advertisers that can interested in promoting their messages on it.
Many of our clients decide the location of their giant advertising screens based on how saturated the market is in each place. After all, a greater number of competitors implies less demand and with it, a greater effort to attract advertisers.
Please choose the right size.
We might think that the decision in this area is easy: choose the largest. However, the appropriate size depends not only on the range of screens offered by the industry, but also on the space available to place them in vacant locations. So far, an aspect that should be analyzed to enhance and accelerate your ROI are the visual airs, that is, the distance that exists between the graphic elements of an environment, since the correct calculation of these distances will give your screen maximum prominence, increasing thus its use value and avoiding the visual bombardment caused by the poorly planned placement of other advertising spaces.
The most common standard sizes of giant advertising screens are 15x5 m and 11x3 m (for both horizontal and vertical orientation screens), but fortunately LED technology offers a very high customization capacity of the dimensions, just look at the billboards Multipurpose LEDs that are placed along entire streets or the 360º screens of stadiums and shopping centers.
From iLED México we do not want to cause you a false belief, because it is a fact that the bigger the screen, the greater communication value it will have. But if you also have the opportunity to decide between several perspective, position and visual air options, you can further increase said value and thereby help your return on investment to occur more quickly.
Limits the number of projectable ads.
One of the main advantages of giant advertising screens over static billboards is that they can house and project several advertisements during the day, while those frames designed to hold print can only be rented by one advertiser at a time. This translates into multiplied earnings in this regard, contributing of course to your return on investment.
However, as part of the culture of measurement that we have already explained, at iLED México we always recommend that, as part of the administration of each outdoor advertising screen, aspects such as the number of advertisements to be projected, the duration of projection of each one, if there will be split-screen ads (two or more ads at the same time), if the giant screen will have one or two faces (the latter can double advertising revenue depending on the directions of traffic in your area) and In the end, plan how many sequences you will complete the screen per day to have better monetization.
The trend indicates that the sequences projected by each side of the advertising screens are more commonly made up of six or eight ads.
Plan your offer.
For this, it is best to study the level of demand for advertising space that prevails in the town where your screen will be installed, as well as the price range and the characteristics of the promotional services offered in this regard. Once you have information about these factors, it will be easier for you to integrate a competitive offer of the services of your advertising giant screen, being able to choose arguments related to price, technological potential, projection time, etc.
In general, the rates in the world of outdoor advertising spaces are governed to a large extent by demographics, in the same way that it occurs with real estate or the minimum wage in the Mexican Republic. An example is the wide range of prices in the United States, which goes from two thousand to seven thousand dollars a week.
The more competitive the promotional services of your giant screen are, the more priority you will have in the process of buying spaces in your market, a fact that will have logical consequences in your return on investment.
The best thing to do is to create a standard package of plans that will bring you closer to the objective of extending the periodicity contracted by your advertisers and, above all, induce their loyalty to your spaces. In the same way that a cell phone company designs plans that respond to the current needs of its multiple target markets (such as Internet included, discounts for advance payments, monthly sets of minutes, etc.), at iLED México we suggest you create service packages oriented to three axes: satisfying the most frequent needs of the advertiser market, organizing your plans in such a way that they satisfy different categories or niches and finding a competitive advantage, that is, an important benefit that you can give to your clients that your competitors cannot offer so easily.
Let's do it.
After having understood what ROI (return on investment) consists of and taking into account the considerations that we have described, we are sure that it will be easier for you to plan your business and structure a process that allows you to reach your break-even point as quickly as possible. soon as posible.
Outdoor giant screens are quite a profitable business, because as long as there is at least a silver lining on the physical plane, the visual exposure of brands, their products and services in large formats will be an essential resource. To this we can add that LED technology will most likely take decades to become obsolete, thanks to its continuous evolution, high adaptability and customization capacity, guaranteeing the durability of businesses based on giant LED screens for outdoor advertising for a long time, after all. , it sounds more logical if we take into account that LED has become the best nature of giant screens from its inception to the present.
If you want to undertake through giant outdoor LED screens, at iLED México we can provide you with advice, support and technological resources to integrate your advertising business with the most optimal and profitable structure possible.
