If you are considering an investment in digital screen media hardware, software and services, most likely you are also looking to build out a ROI model that will justify the associated expense. It’s not impossible, but highly unlikely that the traditional ROI formulas will provide you with the useful and accurate information that you are looking for. Why? There are too many variables and unique factors in DS for the standard ROI equations, and communication tool network providers and users are running into the same ROI nightmare that agencies have run in to for years when trying to calculate and verify the ROI behind any particular medium in a campaign. The layering of messaging hitting the consumer through television, radio, print, direct mail, mobile, online and now location based digital screen media, makes it virtually impossible to determine which medium or combination of mediums caused the lift or awareness. Add in that many companies can’t and/or don’t track actual ROI on any of their communications, but rather “know” success when it happens and just assume it is a fact of the marketing efforts.
The challenge in splitting up the ROI model to address the equipment expense vs. software expense vs. the services expense is also tricky. On the expense side it is easy to identify tangible and intangible expenses; the hard part is on the benefits side. If you are unable to clearly identify what is driving the lift, how will you ever come up with a proven positive ROI?
I’m not saying that select portions of a digital screen media solution or a specific campaign can’t have a reliable ROI model to help guide decision making. What I am saying is that inside, outside and general economic variables and conditions make it extremely difficult to prove out a model prior to pilot testing and/or limited scale rollout.
And finally, with all of the choices in hardware, software and service providers, content development, management, usage, strategy, network management…the list goes on and on…looking at someone else’s successful model does not ensure the success of your model because you might be deploying with a totally different team, with different skills and experience, and once again inside, outside and economic variables may change your results.
The science and art of managing consumer expectations and experiences is evolving. Communication devices need to evolve as well. Not every device or service will be able to provide a meaningful ROI. What’s most important is to work smart and know what technologies are available, as these may be the minimum price of entry to just be in the game.
If you need a hand with ROI, the Digital Screenmedia Association (DSA) and its task force recently released the “ROI Calculator,” which is available immediately to DSA members.
To watch a video about the creation of the calculator, click here. To learn more about membership in DSA, click here.
