How To Price Your Digital Signage Ad Space (Part 2): Answer From an Expert

In continuation of the earlier discussion on how to sell your ad space, we received an answer to the following question posted by Darin Gilstrap:
“BroadSign Bloggers: Since there are several media math formulas currently being used to calculate digital signage media buys, I truly wonder which formulas are really apples-to-apples. Can you charge a national advertiser a flat ad-spot rate/per month/per location across 500, 1000, 2000+ locations? As a network grows do advertisers hesitate to pay more based on network growth? What about niche audiences for example women-only, Hispanics, African American networks, do they garner higher rates based on tighter targeting.”

Here is the expert answer from Jeff Dickey, Founder/VP Business Development, SeeSaw Networks:

“While standards have yet to be agreed upon, one emerging currency for digital signage buys is CPM, where the impressions are determined using the combination of a validated traffic number multiplied by an awareness number. This formula truly brings an apples-to-apples comparison to digital out-of-home media buys that span multiple digital out of home networks.

National advertisers are reluctant to buy on flat rates simply because not all locations are equal, even within the same network (different demos, different traffic, etc.). Some networks have gotten away with requiring nationwide/network-wide buys, but those days are numbered as the advertisers push toward more specific buys with greater and greater levels of targeting.

If the research is available to support the demographics of female, Hispanic, or age groups — even better if the demographic data can be day-parted — a premium can definitely be applied to the better opportunities the advertiser has to reach their target audience.”

Jeff Dickey, Founder/VP Business Development, SeeSaw Networks

Click here to read the whole discussion.

Add comment October 13th, 2007