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The Problem with the Digital Signage Industry is… the Digital Signage Industry Itself

Written by Ben Wey | Oct 15, 2024 9:20:50 AM

After 15 years in screen advertising, one of the biggest issues I see is that the industry is still plagued by a fundamental misunderstanding of what makes digital signage work. Instead of being driven by rich content strategies and sound operational concepts, far too many deployments are pushed forward by hardware vendors and integrators. These players often disappear once the screens are handed over and the final invoice is paid—leaving clients with expensive, shiny screens but little else.

A Missed Opportunity in Digital Signage

Handing over a completed network is just the start of a digital signage project. Screens are powerful, but without an ongoing, focused strategy, they’re not much more than digital wallpaper. A successful digital signage deployment requires more than just a physical setup; it demands a vision for engaging audiences consistently, along with a robust framework for operations and revenue generation. But the industry has a bad habit of selling the hardware without the “how-to.” Often, it’s the distributor or integrator who drives the project, only to vanish until the hardware approaches the end of its lifecycle.

Unrealistic Expectations and Empty Promises

Over the years, I've encountered a troubling pattern. I’ve seen eager retailers and leisure operators being lured into the idea that simply installing screens will lead to a tidal wave of advertising revenue. The plan usually goes something like this:

  1. Purchase our high-tech screens.
  2. Advertising revenue magically appears.
  3. The screens essentially pay for themselves, and you even make a profit!

It’s a catchy pitch, but it’s often little more than a pipe dream. Many operators end up buying into this hype, disregarding all the crucial questions about content strategies and audience engagement. And sadly, it’s a pattern I still see today, perpetuated by some of the biggest names in hardware manufacturing.

Now, with buzzwords like "Retail Media" making the rounds, we’re seeing the same misleading narratives, repackaged. But at the heart of a successful media operation are questions that too many screen deployments still fail to ask:

  1. Who is your target audience?
  2. How do you measure this audience?
  3. How do you maintain their attention?
  4. How do you monetize it effectively?

Failing to answer these questions up front is a recipe for failure. If your “target audience” is simply “everyone who walks by,” you’re already starting off on the wrong foot. Any serious media operation needs solid data—quantitative and qualitative—to demonstrate the value of its audience to advertisers.

Why Content is King

The biggest trap is thinking that screens are purely a vehicle for ads. They’re not. If all you show is advertising, people will ignore it. Would you pay for a newspaper with only ads and no articles? Or tune into a TV channel that runs nothing but commercials? People tune out if the content isn’t fresh, relevant, or engaging. So why expect that digital screens, if only showing ads, will be any different?

An effective digital signage strategy means offering content that draws viewers in—content that’s helpful, entertaining, and constantly updated. Your screen should be as much a service to your viewers as it is a vehicle for ads.

Monetizing Screen Time

Let’s say you have a well-defined audience, content strategy, and reliable data. Now it’s time to talk monetization. Instead of selling a fixed “loop” of content, think about selling your screen time in ways that match the needs of your advertisers. Locking them into fixed loops is limiting. By offering more flexible ad packages, you’re catering to advertisers' needs, not the constraints of your content setup.

Holding Hardware Vendors Accountable

Given how many operators have been burned by overly optimistic promises, I’m surprised that hardware vendors and integrators aren’t more often held accountable. Misleading customers about operational costs and over-promising ad revenue potential can lead to a whole network underperforming, casting doubt on digital signage as a whole.

As hardware prices continue to drop, more businesses will likely install screens. Yet, the lower entry barrier doesn’t negate the need for a smart, data-backed content and monetization strategy. Without that, screens will only clutter spaces rather than enhance them.

For any savvy customer considering a screen network, I’d suggest structuring contracts to give vendors a stake in the operation’s success. Leasing hardware from vendors with early termination clauses could be one approach, keeping them accountable beyond installation day.

The digital signage industry has huge potential, but it needs to move beyond its short-sighted focus on hardware and start focusing on value creation. What’s your take? How can we reshape the industry to prioritize content and operational success over simply selling screens?