Digital-signage operators could dramatically increase their revenue by offering mobile services to advertisers, according to Never.no’s Kelly Moulton.
Moulton, marketing VP at the Norwegian specialist in linking out-of-home to online and mobile, told delegates at this week’s Integrated Systems Europe (ISE) event in Amsterdam that “trying to think of yourself as a mobile company is a way to rejuvenate your strategy with distribution”.
They should consider digital signage not as an end in itself, but as a distribution mechanism for a call to action delivered via a coupon on a mobile phone, he said.
For example, suggested Moulton, operators of medium-sized retail networks in smaller European cities can typically expect gross revenue of about €3-5000 ($4800-6850) annually per screen.
But if they add mobile they can charge their advertisers a further €0.10 ($0.13) for every barcode, coupon and suchlike that they deliver.
They could therefore need fewer than 100 mobile interactions with each screen each day to double their revenue. “And that’s a volume price,” said Moulton. “I think for premium lead generation you can do a lot more than that.”
He added that mobile revenue per display could be maximised by micro-charging for every interaction: for example, the user’s original SMS text message to the screen, the network’s response, the sending of a coupon, its redemption, and so on.
But he warned that operators should ensure they support older phone models as well as smart devices such as the iPhone and Android-based handsets, and – like many commentators on digital signage before him – underlined that none of these revenue-boosting tactics would work without effective content: “Most content is crap,” opined Moulton. “We’re all in the industry, we all know it, and we’re bored by it.”