Since the expense of buying and deploying a digital signage network is one of the most common concerns for business owners, it's a good idea to explore this territory again. We've talked about the associated costs of hardware, software, and content in the past. But, the industry changes quickly. The rise in competition between providers and the current economic climate have put pressure on prices. Plus, as you would expect in any industry that relies heavily upon technology, you can purchase the same components today for far less than you would have paid years ago.

Below, we'll take a quick tour through the costs of investing in a signage network. I'll provide reasonable numbers for the various components and an overview of what you can expect to pay for content and staff.

First, two mild disclaimers: like the industry, these numbers change quickly. Within several months, the prices I'll describe below may become less realistic, given the economy, level of competition, and advances in the underlying technology. Also, every situation is unique. For example, you may need twelve employees to maintain a 200-screen project over 25 venues while your competitor only needs five employees for a smaller project. In the following discussion, we'll try to navigate these discrepancies as much as possible.

Hardware And Software

Several years ago, you could expect to pay nearly $1,500 for a 40-inch plasma screen. Today, the industry has migrated to LCD screens which may cost as little as $1,000 each. Each screen will need a display mount; expect to pay approximately $200 for each mount. Of course, you'll also need a player for each site at which you're planning to deploy your digital screens. Depending upon your needs (including the number of content channels), the player can cost from $500 to over $2,500.

Installation will cost approximately $1,000 for a 100-screen project; that's lower than it was years ago and typically includes a team of two or three technicians. Finally, technical support will likely cost $1,500 over a 3-year period. The prices above assume a 3-year warranty which is standard in the digital signage industry.

The Cost Of Content Production

I've mentioned before that this area is a wild card from a budgeting perspective. Unlike a media player, content doesn't have a standard price tag. If you were to ask twenty content production companies how much they would charge for a given signage project, you would probably receive twenty different bids over a huge range. Plus, keep in mind that the type of content you use will influence the cost. For example, static pieces that are created through the use of templates will be far less expensive than full motion video.

Staffing Needs

A digital signage network that includes 100 screens will likely require between 8 and 10 employees. Similar to the costs associated with the production of content, your signage network's staffing requirements will depend largely upon your goals. For example, if you're distributing content that is exclusively devoted to your own business, you may only need a few people to manage the entire operation.

On the other hand, if you're generating revenue by displaying advertising on your screens, you'll need employees to sell the spots. You'll probably also need someone to analyze traffic patterns, data feeds, and other features. Each position will typically command an annual salary between $40,000 and $60,000.

Creating A Realistic Budget

The main hurdle in getting the most from your digital signage network is allocating the necessary budget. Too often, business owners and managers will budget the money for hardware and software, yet neglect the cost of producing content. Other times, they'll underestimate the number of people they need for overseeing the project. What we've discussed above is a reasonable overview of the costs associated with a signage network. I cannot overemphasize the importance of identifying your objectives prior to investing. A signage network can deliver an impressive ROI, but it begins with creating a realistic budget for its deployment.