Introducción
How much profit can pantallas de visualización LED bring in different scenarios? Should we choose a busy outdoor advertising space or an indoor conference centre?
How to control the investment cost? How to maximise the advertising value? This article will reveal them one by one to help you accurately grasp investment opportunities and maximise your profits!
Tabla de contenido
1. What is the return on investment of LED display screens?
Return on investment (ROI) is like the relationship between the fruit and the seed you harvest after planting a seed.
In simple terms, it is the ratio between the money you invest and the money you earn back through this project.
In layman’s terms, it is how much money you spend and how much money you can earn back in the end.
Suppose you buy an LED display screen and install it somewhere to play advertisements.
- Costo:
The cost includes the money you spend on the display screen, the money you spend on installing the display screen, and the money you spend on daily maintenance. These add up to your total investment.
- Income:
The income is mainly the money advertisers pay you because they want to place advertisements on your display screen.
If your display screen is in a good location and has a large flow of people, advertisers are willing to pay more.
- Calculate the return rate:
You subtract the cost from the revenue to get the net income.
Then, divide the net income by the cost and multiply it by 100% to get the return on investment. The higher this number is, the more cost-effective your investment is.
2. What factors affect the return on investment of LED screens?
1.1). The money to buy the screen
The money to buy the screen is the first key factor in the return on investment. The screen size, quality, and brand will affect the price.
Generally speaking, the larger the screen and the better the picture quality, the higher the price.
For example, a small indoor LED screen may be relatively cheap and suitable for some small stores with limited budgets.
A large outdoor high-definition screen may be very expensive and suitable for places with high traffic to attract attention.
Brand is also important. Although the screens of big brands are expensive, they are of guaranteed quality and are more reliable to use.
Although the screens of small brands are cheap, they may have quality problems and the cost of repairs will increase later.
1.2). The money to install
The money to install the screen is also important. The installation location will affect the cost. If the display is installed on flat ground, it is relatively simple to install, and the cost is low.
However, if it is to be installed on the exterior wall of a high-rise building, professional equipment and personnel are required, and the cost will increase. The amount of installation work is also a factor.
During installation, it is necessary to build brackets and lay lines. The larger the amount of these works, the higher the cost.
For example, installing a display on some complex building structures may require more brackets and lines, and the installation cost will increase.
1.3). Daily expenses
Daily expenses include maintenance costs and electricity bills. Maintenance costs are inevitable expenses during the use of the display.
The display will get dirty after a long time and needs to be cleaned regularly.
Sometimes there will be failures and repairs. If the display is installed in a dusty place, the cleaning frequency will be higher, and the maintenance cost will increase.
Electricity bills are also an important cost factor. The energy consumption of the display depends on its size and brightness.
Generally speaking, large and high-brightness displays consume more electricity. If the display is running 24 hours a day, the electricity bill will become a considerable expense.
2.1). Advertising value
Advertising value is a key factor affecting the income of LED display screens. The location of the display screen is very important.
If the display screen is installed in a place with a lot of traffic, such as a downtown square, the entrance of a large shopping mall or a transportation hub, the advertising exposure rate will be high, and advertisers are willing to pay higher rents.
On the contrary, if the display screen is installed in a place with less traffic, the advertising value will be greatly discounted. The audience group is also important.
If the audience around the display screen is a high-spending group or practitioners in a specific industry, advertisers will feel more valuable and willing to pay higher rents.
The duration of the advertisement is also critical. If the display screen can play advertisements for a long time and at a high frequency, advertisers may be willing to pay more.
2.2). Advertising market environment
The advertising market environment will also affect revenue. The degree of competition in the advertising market will affect the rent.
If there are many advertising spaces around, advertisers will have more choices and the rent may be lowered.
On the contrary, if advertising spaces are scarce, advertisers may be willing to pay higher rents. The economic situation will also have an impact on the advertising market.
In times of economic prosperity, companies have sufficient advertising budgets and strong advertising demand, and the rent of the display screen may increase.
While in times of economic recession, companies may cut advertising expenses, resulting in a decrease in rent.
3.1). Usage time
Usage time has a direct impact on the efficiency and revenue of LED display screens.
If the display screen can operate around the clock and make full use of every time period to play advertisements or other content, its efficiency and revenue potential will be higher.
For example, some places that are open 24 hours a day, such as large Centros comerciales, transportation hubs, etc., their LED display screens can play advertisements all day to attract audiences in different time periods, thereby increasing revenue.
If the display screen is only used in a specific time period, such as day or night, some potential advertising time may be wasted.
However, by rationally planning the content playback in different time periods, the efficiency of use can also be improved.
3.2). Content update frequency
The frequency of content updates is also important. Frequently updating the content of the display screen can attract more audience attention and improve advertising effectiveness.
If the content of the display screen is outdated and single, the audience may lose interest, resulting in a decrease in advertising effectiveness.
Advertisers hope that their advertisements can be updated in time to keep them fresh and attractive.
If the display screen can quickly respond to the advertiser’s content update needs, it will increase the advertiser’s satisfaction and willingness to cooperate, thereby increasing the revenue of the display screen.
4.1). Technology update
Technology updates will affect the competitiveness of LED display screens.
With the continuous development of display technology, new display technologies such as higher resolución, lower el consumo de energía, and thinner display screens are constantly emerging.
If your display technology is backwards, you may be at a disadvantage in market competition.
For example, some new LED displays have better display effects and lower energy consumption, which may attract more advertisers and thus improve the return on investment.
The compatibility and expandability of the display are also important.
If the display is compatible with multiple signal sources, supports multiple playback formats, and can be easily upgraded and expanded, such as adding interactive functions and linking with other devices, it will make it more competitive, extend its service life, and improve its return on investment.
4.2). Policies and environment
Policies, regulations and market environment will also have an impact on the return on investment of LED display screens.
Government policies and regulations on the advertising industry will affect the operation of display screens.
For example, some regions may impose restrictions on the setting of outdoor advertising, including advertising content, height of advertising space, area, etc.
If the display screen does not meet the relevant policy requirements, it may face rectification or punishment, incur increased operating costs, and even affect its normal use.
The market competition situation will affect the rental and income of LED display screens. If there are many local competitors, it is necessary to attract advertisers by improving service quality and optimising advertising content.
In addition, cooperation opportunities with other companies or institutions will also affect the return on investment.
For example, cooperating with local governments, large companies, event organisers, etc., to jointly hold promotional activities can increase the exposure and income source of the display screen.
In short, when investing in LED display screens, you should consider these factors comprehensively, try to reduce costs and increase income, so as to achieve a higher return on investment.
3. What is the return on investment of LED display screens in different scenarios?
1). publicidad exterior media scenario
1.1). Overview of return on investment
In outdoor advertising media scenarios, the return on investment of LED display screens is usually quite high.
For example, you spend a sum of money to install a large screen in the city centre square or on the side of the main road to broadcast advertisements.
In general, the principal can be earned back in 1-2 years, and there will be good returns every year thereafter.
Some people have done statistics and found that this kind of screen can increase the number of customer consultations of advertisers by about 30%, and sales can also increase by 15%-20%.
1.2). Key Factor Analysis
- High Exposure Rate:
Places with large traffic, such as downtown squares and shopping mall entrances, have many people coming and going.
The advertisements on the screen can be seen by more people, which naturally attracts customers and brings in revenue.
- Advertising Value:
Compared with traditional billboards, LED display screens can move and display various colours and pictures, which can attract people’s attention more.
Just like electronic billboards on the roadside, they can catch the eyes of passers-by more than ordinary posters, so advertisers are willing to spend more money to rent them.
- Operation Cost:
Although it costs a lot of money to buy and install the screen at the beginning, LED display screens are more energy-saving and have a long service life (generally several years), so the long-term cost is not high.
2). Estadio Scene
2.1). Overview of Return on Investment
In stadiums, the return on investment of LED display screens is also quite good. For example, you invest in a screen in a large stadium for live broadcast of games, display of athlete information and advertising.
Generally speaking, the cost can be recovered in about 5-8 years, and there will be a return of more than 20% every year thereafter.
Because sports events have high advertising value, many brands are willing to spend money to display ads during the games.
2.2). Key Factor Analysis
- High Demand:
During sports events, there are a lot of spectators, and advertisers are scrambling to advertise on the big screens in the stadiums, so the rental is also high.
- Technical Requirements:
The screens in the stadiums need to be bright, the picture should be clear, and the refresh rate should be high, so that the audience can see clearly even when they are far away and the light is complex.
- Versatilidad:
The screen can not only play ads but also display game information and athlete data, and even interact with the audience, which increases its value.
3). Indoor Conference and Exhibition Scenarios
3.1). ROI Overview
In indoor conference and exhibition scenarios, the ROI of LED display screens is relatively stable. For example, you invest in a screen in a conference center or exhibition hall to display products, play videos, etc.
Generally speaking, the ROI is between 5% and 15%. Although it is not particularly high, it is relatively stable, and the risk is small.
3.2). Key Factor Analysis
- Alto Resolución and Colour Reproduction:
The indoor environment is relatively stable, and the brightness of the screen is not required to be high, but the resolution and colour must be good, so that a clear and realistic picture can be displayed.
- Versatilidad:
The screen can be used not only for conferences and exhibitions, but also for internal corporate training, product display, etc., which increases its frequency of use.
- Operational Cost Control:
By optimizing equipment efficiency and reducing energy consumption, costs can be controlled and the return on investment can be improved.
4). Transportation Hub Scenarios
4.1). Overview of Return on Investment
In transportation hubs, such as stations, aeropuertos, docks, etc., the return on investment of LED display screens is also quite high.
Generally speaking, the cost can be recovered in about 5-8 years, and the annual return rate is above 20% thereafter. Because these places have a particularly large flow of people, the advertising value is high.
4.2). Key Factor Analysis
- High flow of people:
Transportation hubs are crowded with people, and the advertising value is high. Advertisers are willing to spend a lot of money to rent screens.
- Information Display Demand:
The screen can not only broadcast advertisements, but also display information about trains, flights, and ships, which increases its value.
- Technical requirements:
These screens need to be bright, waterproof and dustproof because the outside environment is more complicated.
5). Special events and rental scenarios
5.1). ROI overview
In special events and rental scenarios, the ROI of LED screens is relatively high and flexible. For example, you invest in a screen for stage performances, outdoor concerts, temporary exhibitions, etc.
Generally speaking, the ROI is between 5%-15%. Because these events have a strong demand for screens and high rental costs.
5.2). Key factor analysis
- Alta flexibilidad:
LED screens can be quickly set up and disassembled according to the needs of the event, which is suitable for temporary use scenarios and increases its frequency of use.
- High demand:
The demand for LED screens in the special event and rental market is strong, especially during large events and performances, when advertisers and event organizers are willing to spend a lot of money to rent screens.
- Technical requirements:
These screens need to be bright, high in contrast, and have a good viewing angle, so that they can provide good visual effects in different environments.
In general, the ROI of LED screens in different scenarios varies.
In outdoor advertising media, stadiums, and transportation hubs, the return on investment is usually high due to the large flow of people and high advertising value, and the cost can usually be recovered in 1-2 years.
In indoor conferences and exhibitions, special events, and rentals, the return on investment is relatively stable, but also considerable.
When investing, you can choose the appropriate scene according to your own situation and needs, so that you can better realize the return on investment.
4. How can I get a higher return on investment?
1). Choose the right location
1.1). Outdoor advertising media scene
- Places with large traffic flow:
Install the display screen in places where people come and go, such as downtown squares, shopping mall entrances, and busy streets.
The more people there are, the more people will see the advertisement, and advertisers will be willing to pay higher rents.
- Places with convenient transportation:
If the display screen is installed next to a major traffic artery, such as a highway exit or near a subway station, drivers and passers-by can see it, the advertising effect will be good, and the rent can be higher.
1.2). Stadium scene
- Large event venues:
Choose large stadiums, such as venues that can host large football matches and concerts.
These places hold many events and have many spectators, and advertisers are willing to pay a lot of money to rent screens.
- Popular sports venues:
For example, basketball halls, badminton halls, etc. These places often have competitions and activities, stable traffic, and high advertising value.
1.3). Indoor conference and exhibition scenes
- High-end conference centres:
Choose places where high-end conferences and business activities are often held, such as conference rooms in five-star hotels and large exhibition centres.
The quality of customers in these places is high, and advertisers are willing to pay high prices.
- Professional exhibition halls:
For example, science and technology exhibition halls, art exhibition halls, etc. The audiences in these places are interested in specific fields, and advertisers can accurately place advertisements, with good results and high returns.
1.4). Transportation hub scenes
- Large stations and airports:
Places with huge traffic such as railway stations, bus stations, and airports have particularly high advertising value.
For example, in the airport terminal, passengers have time to watch advertisements, and advertisers are willing to pay high prices.
- Subway stations and bus stations:
Subway stations and bus stations are also good choices, with large traffic and high advertising exposure.
1.5). Special events and rental scenes
- Popular event venues:
Choose places where large events are often held, such as large music festival venues, outdoor performance venues, etc.
There are many activities in these places, and the demand for display screens is strong, and the rent is also high.
- Multifunctional venues:
For example, some multifunctional venues that can hold weddings, exhibitions, and performances have high usage frequency and high return on investment.
2). Improve usage efficiency
2.1). Usage time
- All-weather use:
If possible, try to keep the display running 24 hours a day. For example, in places such as shopping malls and transportation hubs that are open 24 hours a day, the display can play advertisements all day to increase revenue.
- Time-sharing content arrangement:
Different content is arranged according to different time periods.
For example, commercial advertisements are played during the day and cultural activity information is played at night.
This can attract audiences in different time periods and improve usage efficiency.
2.2). Content update frequency
- Frequent content update:
Frequently update the content of the display, such as changing new advertising images and broadcasting the latest news.
This can attract more viewers, and advertisers will also feel that it is worth it and are willing to pay more.
- Contenido interactivo:
If possible, add some interactive content, such as allowing viewers to vote through their mobile phones and participate in lucky draws.
This can increase the audience’s sense of participation and improve advertising effectiveness.
3). Optimise advertising content
3.1). Attractive ads
- High-quality images:
Advertising images should be clear and colourful to attract people’s attention. No one wants to watch blurry and dim images.
- Contenido creativo:
Advertising content should be creative, such as using animations, videos, etc., to display products, which is more attractive than simple pictures.
3.2). Precision delivery
- Understand the audience:
Understand the characteristics of the people around the display screen, such as young people, office workers or the elderly.
According to the characteristics of the audience, deliver ads that they are interested in, so that the advertising effect will be better.
- Cooperating advertisers:
Cooperate with advertisers to customise advertising content according to their needs, which can improve advertiser satisfaction and increase cooperation opportunities.
4). Flexible operation
4.1). Multiple uses
- Combination of advertising and information display:
LED display screens can not only broadcast advertisements but also display other information, such as train and flight information at transportation hubs and game information at stadiums.
This can increase the use value of the display screen and improve the return on investment.
- Temporary rental:
If you have free time, you can rent the display screen to other activities or companies to increase your income.
4.2). Timely adjustment
- Market changes:
Pay attention to market changes and adjust advertising content and rent in a timely manner.
For example, when the economy is good, you can appropriately increase the rent; when the economy is bad, you can appropriately reduce the rent to attract more advertisers.
- Technology updates:
Pay attention to technology updates, upgrade the display screen in a timely manner, and maintain competitiveness.
For example, if the new display technology is more energy-efficient and has better picture quality, you can consider upgrading it, which can attract more advertisers.
5. Conclusión
Through the detailed analysis of this article, do you have a clearer understanding of the return on investment of LED display screens?
Choosing the right location, improving usage efficiency, optimizing advertising content, and flexible operation, these strategies will help you achieve high returns in different scenarios.
Investing in LED display screens can not only bring considerable benefits, but also enhance brand influence.
Finalmente, si quieres saber más sobre las pantallas LED, Por favor póngase en contacto con nosotros.
