Return on investment, or ROI, is a critical consideration for any technology investment. With digital screenmedia networks (digital signage, kiosks, etc.), the need for calculating and considering ROI is especially important, given the capital costs of many networks and the ongoing expenses required to maintain them.

The Digital Screenmedia Association’s task force on ROI was formed with the goal of providing an ROI framework to be created and maintained by a cross-functional team comprising industry analysts and consultants, vendors and association members that represent end-users.

ROI considerations reflected in the framework:

• Type of venue (retail, corporate, healthcare, transportation, etc)
• Type of screenmedia (digital signage, kiosks, multipurpose displays)
• Goals of the network (sales lift, customer experience, advertising, self-service applications)
• Scope (number of locations, number of displays per location)
• Content strategy
• Deployment model (on-premise, hosted, managed services)

ROI task force members:

• Chair: Matt Schmitt, Reflect Systems
• Sean Andersen, Six Flags
• Michael Chase, St. Joseph Content
• Bill Collins, DecisionPoint Media
• Scott Francis, PRN
• Rocky Gunderson, SeeSaw Networks
• Pat Hellberg, Kaicon
• Bob Michaels, Magenta Research
• Mike Parkinson, LG Electronics
• Mark Webster, Rollouts

We have gathered data from respective organizations and industry sources, discussed the scope and the approach to be used in the ROI framework release cycle and plan a near-term introduction of the first deliverable. The current plan is to introduce a first-version ROI document and calculator package October 1, 2010. This first version includes an introductory document outlining the assumptions and considerations used, along with instructions on how to use the included ROI calculator to easily input relevant information and arrive at a simple ROI model. This version of the framework is most useful for "passive" digital signage implementations and does not yet dive into some of the elements specifically related to interactive kiosks or self-service applications.

Future plans of the committee (certainly to be influenced by association membership and feedback) may include considerations for multiple analysis models based on network types and goals of the organization. It's well understood that it is difficult to maintain a single ROI input and calculator model that will work accurately for all types of screenmedia projects. Based on feedback on the first version (which is document- and spreadsheet-based) the committee may then work with the DSA to launch an online tool that uses a wizard type of approach to reviewing the ROI models.

It's exciting to work on such a critical project. There is no doubt it's a challenging endeavor – not because ROI is difficult to explain, but because there are so many flavors of digital screenmedia deployments and business models. But I'm confident that with the committee members, their respective organizations, and the DSA and association members we'll provide some beneficial tools and information for the benefit of everyone.

The committee could greatly benefit from member input on a number of things, including:

• opinions on the most critical ROI elements
• most important measurement criteria (sales lift, ad revenue, cost savings, etc)
• realistic cost savings criteria when using digital (over static signage, non-networked digital solutions, etc)

This type of valuable input is always appreciated and will greatly help the ROI task force deliver the best information possible.

Feel free to forward any feedback, ideas, or questions to me at matt@reflectsystems.com anytime.

Matt Schmitt is CEO and founder of Reflect Systems, a leading provider of digital media solutions. He also serves as chairman of the DSA's task force on ROI.

See also: DSA's webinar on Digital Signage ROI