"Free" Ad Networks have long been frowned upon by the DS Experts. Too expensive, not enough Tier 1 advertiser interest, the reasons for an average Joe to stay away from the ad sponsored projects are abundant. Is that really the case though?
The "Free" business model (ad supported, "freeminum" or otherwise) is thriving in many industries: Video Games, Online Content, Medical Software and more. It works for a few large networks in the DS space as well - WalMart, Beer Store, Mac's Milk and the latest Korean Business Association (dominated by convenience store locations) network by Toronto's ArtCube.
The best we can offer to shed light on the ad-based model is our personal experience with "Free Networks". In the past we encountered a number of failed ad-based networks. At the same time, we've worked with a few that exceed our expectations and remain paying clients. How do they do it? When we interviewed a few companies (both among our client base and unaffiliated) common thread of "relevance" emerged. Each of these companies has picked a niche. In many case it's an ethnic or vocational niche such as ethnic grocery stores (such as pictured live from a Toronto neighborhood), specialty doctors or veterinary clinics. Also worth noting is that most often, the businesses were lean operations with minimal overhead. In many cases they represented a side project with 50-100K annual revenue. Not quite a pot of gold, but profitable, plausible business model to get you thinking.
We believe that if you are thinking of setting up an ad-based digital signage network and have access to a niche audience, don't give up the idea. Consider the target advertiser base, evaluate the size and demographics of the audience. Look for opportunities with advertisers directly related to the audience, as well as local businesses that may want to speak to area's consumers. Consider your business model - will the screens be totally free to the host facility or will they be willing to share the cost to gain time on the network? Is there an opportunity to offer the network free of charge and then supplement with content creation fees for ads for the host facility? Can the equipment be leased and then written off as a business expense? There will be a million and one questions with even greater possible outcomes. Don't dismiss anything until you investigate and explore the pros and cons of each option.
Finally, don't hesitate to find an expert or someone that has been down the same path before. Aside from providing any of our services, we will be always happy to direct you to someone with real life experience. We are all part of the same network!
Planning a video wall in your store? Consider the following musings. An average 3×3 video wall requires a minimum of $20-25K hardware investment (assuming costs of premium-priced thin-bezel displays). Installation costs are high as well. Let's peg the total at a moderate $30,0000. Where is content cost in all this? Often completely ignored.
