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Tips: Understanding the Ad Revenue Model for Digital signages
Commercially, the model implies the digital signage agency to do the investments upfront on a 1-3 year contract. It also pays a monthly fee to the property owner. (optional). A revenue sharing arrangement is then put into place between the agency and the property owner.
The total screens market in India is potentially in Millions of screens and has enough room to accommodate multiple large players. Many international players with deep pockets are entering this booming market. Most advertising networks quote a rate of between a few rupees for a 30 second spot on a single display. The rates quoted result in a calculated ROI of 3-4 months with all spots being booked and paid for. Too good to be true isn't it. Most networks who have put up displays have admitted that this is a far off target. Even an achievement of 1-2 years for ROI would be good enough. The rates quoted result in a calculated ROI of 3-4 months with all spots being booked and paid for. Too good to be true isn't it. Most networks who have put up displays have admitted that this is a far off target. Even an achievement of 1-2 years for ROI would be good enough. |
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