How much does digital signage cost? 

Digital signage refers to the use of digital media content for advertising and information purposes on electronic displays or projection surfaces. These are remotely managed digital displays that are typically used for sales, advertising and marketing. Digital signage is a growing trend in corporate communications that can improve customer loyalty. By using digital signage, companies can present visually appealing and dynamic content that captures the attention of the target audience. Whether in retail, catering or office environments, digital signage offers numerous applications and benefits. In this guide, you will learn what digital signage costs and which factors influence the costs. This will enable you to better assess the investment required to benefit from the many advantages of digital signage.

1. Digital signage components and their costs

The following cost examples refer to the one-off purchase. Rental and licence models - which we will discuss below - are generally cheaper.

1.1 Hardware

Displays/screens: The displays are the centrepiece of every digital signage solution. They vary in size, resolution and functionality. Smaller screens (20-32 inches) cost around 200-500 euros, medium-sized screens (33-55 inches) are between 500-1500 euros, and large displays (over 55 inches) can cost 1500-5000 euros or more. Specialised displays such as video walls or interactive touchscreens increase in price accordingly.

Media player: Media players are small devices that play digital content on screens. The cost of media players varies depending on performance and functionality. Simple media players cost around 100-300 euros, while more powerful devices can cost up to 1000 euros or more.

Brackets and mounting solutions: Depending on the installation location and method (wall brackets, standing, ceiling-mounted), the costs for brackets and mounting solutions vary. Wall brackets and stands cost around 50-200 euros, while more complex mounting solutions, e.g. for video walls, can cost several hundred euros.

1.2 Software

Content management systems (CMS): A CMS enables the management and distribution of digital content. There are various pricing models, including one-off payments, monthly subscriptions and usage-based fees. The average costs range from around 20-100 euros per month. It should be noted that many CMS providers offer subscriptions that include regular updates and support. This increases the functionality and longevity of the solutions.

1.3 Content

Content creation and design: The cost of content creation depends on the complexity and scope of the project. Simple graphics and text can be created in-house, while professional videos and animations often require external service providers. The costs for external designers and agencies can range from 50-150 euros per hour. A professionally created video can cost several hundred to a thousand euros.

1.4 Installation and setup

Installation costs: Installation costs vary depending on the scope and complexity of the project. Professional installations cost around €1,000 per screen.

1.5 Maintenance and support

Regular maintenance costs: Regular maintenance is required to ensure the long-term functionality of digital signage solutions. These can cost between 50-200 euros per month, depending on the scope of the system and the service contracts.

Technical support: Technical support is often offered as part of a service contract. The costs for this are usually between 50-150 euros per month, depending on the service level agreement (SLA) and the specific requirements of the company.

2. Cost example for a small digital signage project

Cafes, small offices, bakeries or smaller retail outlets are typical clients for a small digital signage project with one or two screens. The costs can be as follows:

• Hardware: 500-1,500 euros (for 1-2 medium-sized displays and a media player)
• Software: 20-100 euros per month (simple CMS)
• Installation: 500-1.000 Euros
• Content creation: 200-500 euros (for basic content), or use of existing content such as social media posts, website content, content from external brands
• Maintenance and support: 50-100 euros per month
• Total costs: 1,000-3,000 euros for the initial investment, plus monthly costs of 70-200 euros.

3. Additional cost factors

In addition to the main components, there are other cost factors that should be taken into account when planning and implementing a digital signage project:

Training costs: Training is required to ensure that your employees can use the digital signage systems effectively. This training can range from an introduction to the operation of the content management system to the creation and management of content.

Typical costs:
In-house training courses: 500-1,500 euros per course
Online courses or webinars: 100-500 euros per course

Software updates and upgrades: Regular updates are necessary to ensure the security and functionality of the digital signage software. Some providers charge additional fees for this, especially for major version upgrades.

Typical costs:
Minor updates: Often included in the subscription
Major upgrades: 500-2,000 euros, depending on the scope of changes and new functions

Energy consumption: The continuous operation of digital signage hardware incurs energy costs. These costs can vary considerably depending on the number and size of the displays and the operating time.

Typical costs:
Average energy consumption of a display: 50-150 watts
Monthly energy costs per display: 5-20 euros, depending on local electricity tariffs and duration of use

4. Cost-benefit analysis

The investment in digital signage may initially seem very high, but the benefits and savings realised by using this technology can quickly justify the initial outlay.

Effective customer approach: Digital signage enables companies to reach their target groups in a modern and appealing way. Dynamic content attracts more attention than static posters, which increases the likelihood that customers will respond to advertising messages and make purchases.

Flexibility and timeliness: Content can be updated in real time, allowing companies to react quickly to market changes, seasonal offers or current events. This reduces the cost and effort of printing and distributing traditional advertising materials.

Reduction in printing costs: The use of digital signage eliminates the ongoing costs of printing advertising materials. This leads to considerable savings in printing and distribution costs, especially with frequently changing content.

Retail media as an amortisation option: Retail media refers to the marketing of advertising space in the retail environment. Companies can use their digital signage displays to rent advertising space to external partners or brands. This opens up additional sources of income that can contribute to the amortisation of digital signage costs.

Example: A retailer could rent the advertising space on its digital signage displays to suppliers or brands. These partners pay for the placement of their advertising messages, which helps the retailer to recoup some of the digital signage investment. The connection to retail media marketers generates additional revenue per advertising display.

Licenses with many advantages: License-based projects offer numerous advantages, which are particularly decisive in the area of system maintenance and updates. One major advantage is the integration of continuous software updates and technical support into the license costs. This ensures that the digital signage system always remains up to date without the need for high one-off investments for updates or upgrades. In addition, the security and functionality of the software is regularly guaranteed by the provider, which is particularly important when used for large-scale projects or in security-critical areas.

Another advantage is the low initial investment. Instead of making high one-off payments for the purchase of software and hardware, companies can spread the costs over a longer period of time. This reduces the financial pressure and makes it possible to start a digital signage project more quickly. This is particularly advantageous for smaller or medium-sized companies that cannot or do not want to invest large sums immediately.

Thanks to the ongoing license fees, the acquisition costs for the software remain moderate and companies still benefit from continuous updates and support services. This makes the entry into digital customer communication more financially attractive and the overall investment more predictable.

5. Conclusion

Investing in digital signage offers companies a wide range of opportunities to improve their communication, target customers and ultimately increase sales. Despite the initial costs for hardware, software, content creation and installation, a thorough cost-benefit analysis shows that these expenses can be quickly amortised by the long-term benefits.

The various components of digital signage, such as displays, media players, content management systems and content creation, are key factors that influence the overall costs. It is important to calculate these costs accurately and set them in relation to the expected revenue and savings.

Retail Media offers further potential for cost recovery, where companies can rent out their digital signage displays as advertising space. This generates additional income and contributes to the amortisation of digital signage investments.

6. Digital signage costs at Bütema