It makes perfect sense to invest in an industry destined for continuous growth, that is, an 8.2% increase in the global market size in the next five years.
The numbers don’t lie, and it applies both to the profitability as a result and the capital investment required to get your business on the ground. After all, you get back what you put out.
A digital signage business is a significant investment that you shouldn’t rush into without proper planning.
You’re going to learn the different ventures you can pursue in the digital signage industry and how to go about the planning process.
Types of Digital Signage Businesses
For a business to get a network of screens running, or even just one, there is a lot that goes into the process; consultations are made, and expenses are incurred. Your digital signage business can take on one of these tasks:
Hardware Manufacturer: As a hardware manufacturer, your company will design, produce and sell hardware components to host content intended for display purposes; Think LG or Phillips.
You’ll work closely with Software vendors and AV integrators to ensure the hardware is compatible with various software applications and digital signage systems.
Software Vendor: A digital signage system needs a software solution to create, manage and distribute digital content. Your work as a software vendor will be to create software applications such as content management systems, scheduling software, and analytics tools.
You’ll need to have expert knowledge of cloud-based technologies, database management, and cybersecurity to ensure there is data privacy and system reliability.
AV Integrator: Digital signage for use in different settings requires audiovisual systems to enhance the impact of visual content and improve user engagement. AV integrators design and deploy these systems by integrating displays, media players, sound systems, and other components into a cohesive solution that meets the client’s needs.
They also provide ongoing maintenance and support so that the system runs smoothly and delivers the desired results.
DOOH Advertising Company: Digital Out of Home advertising is common in public areas such as shopping malls and airports. Your digital signage business will create and distribute digital content across a network of screens to reach a large audience.
This will involve designing and implementing advertising campaigns, analyzing data to optimize campaigns for better performance, and managing the hardware and software components of the digital signage system.
How to Create Your Digital Signage Business
Here comes the necessary planning process, especially for a business that requires quite a lot of initial investment on your part.
Step 1: Determine the Business Model and Choose a Niche
Depending on your expertise and experience, you can choose to major in any of the niches mentioned above. Usually, software vendors also integrate their services to offer certain hardware solutions, such as media players.
You can set yourself apart by determining your target market and identifying the needs and pain points that your business can solve.
For example, you may find that the existing digital signage solutions are too costly or complicated for small businesses; tailoring your services and marketing strategy to address their unique needs will differentiate your business from competitors.
Step 2: Conduct Market Research and Assess the Competition
Once you have decided on a niche, conduct thorough market research to gain insights into the industry, your target market, and your competitors.
Digital signage cuts across different industries; you can target retailers, the hospitality industry, or even healthcare providers.
Setting yourself apart requires that you assess the competition to understand their strengths, weaknesses, and strategies. Analyze market trends, customer preferences, and the demand for your services to identify opportunities and threats.
Step 3: Create a Business Plan
The insights you gain from the market research should help you create a comprehensive business plan that outlines the objectives, strategies, financial projections, and marketing plans for your business.
If you’ve decided to target small businesses that need affordable signage solutions, you need to:
- Develop a pricing strategy,
- Outline your marketing and sales strategies,
- Identify key partners and suppliers, and
- Develop a financial plan.
Step 4: Acquire the Necessary Equipment and Technology
You need several assets to get your business up and running; this includes displays, media players, servers, and other hardware components.
Depending on your business model, you may also need to invest in software applications, advertising space, and other digital signage-related technologies.
Step 5: Build a Team and Network with Industry Professionals
Putting yourself out there will help you gain perspective and insights on how to run your digital signage business successfully. Remember you are not reinventing the wheel; attend trade shows, conferences, and other industry events and connect with potential clients and partners.
You can also hire a team of professionals who are experienced in digital signage technology; building a network of industry professionals will give you the support and guidance you need to get started.
Step 6: Create a Marketing Strategy
Nothing beats prior planning; an effective marketing strategy will set you up to better reach your target market.
You can try to blend digital and traditional marketing channels to promote your business and services. Your marketing plan should also include strategies for building brand awareness, generating leads, and converting prospects into customers.
Step 7: Launch the Business
When it’s finally time to launch your business, find a suitable location to set up your office or workspace, launch your website and social media channels, and begin marketing your business.
Remember to use the right metrics to measure your performance and be flexible enough to adjust your strategies for better performance.
It Has All Been Done Before
Digital Signage is a booming business, but even so, most people have something in common: overthinking and overanalyzing. Try not to get stuck in the research phase, trying to get everything right.
For what may seem like a steep road ahead of you, remember that others have done it and succeeded.
