The expansion of localized digital advertising

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The expansion of localized digital advertising

Advertising was one of the first uses for digital signage. When considering LED screens for advertising, what first comes to mind are large billboards and costly video walls. We also think about retail hubs, urban cities and bus shelters for advertising. Star celebrities are used on adverts and word of mouth in every household is considered the main advertiser.

Recently though, the platform of electronic signage has become very much accessible to the average user. For example, if we look at the education industry, it started out with large universities using LED screens for wayfinding but now, even small primary schools have invested in LED displays to communicate with students.

These developments are for two main reasons:

  • Reduction in costs of LED signs
  • Competitive nature of the digital signage industry

The same is happening with digital advertising and there is a prominent shift towards localized advertising networks.

What do we mean by localized advertising networks?

Independent retailers are now investing in LED screens to be installed on their shop windows so that they can sell that ad space to other local businesses who want more traffic within their area. For example, a local restaurant, salon or gym might advertise their business at a travel agent’s office or a post office. In this local advertising concept, sports venues, both big and small – from stadiums to small clubs, are also getting involved.

We all know that digital signage is known for the flexibility in the type of content that can be displayed. Hence LED sign investors are not only advertising other businesses on their screens but can display their own promotional content for majority of the time. The external content can be displayed at their own discretion. For some businesses the main aim with localized advertising is only to cover the cost of the digital signage investment, while their own business marketing serves as the primary purpose. Some businesses on the other hand have a goal of revenue generation with the LED sign investment.

Localized digital advertising is not always a side venture for businesses. Individuals with an entrepreneurial career in mind are looking at localized advertising agencies based on this concept. With a good financial base, they can invest in LED screens and rent them out to businesses. The operation works on an ad revenue-sharing scheme. One good thing about starting up an agency is that you don’t need to invest in the LED display until you have found advertisers willing to pay upfront for the service. Hence there is no risk involved if this business is executed correctly.

Governing bodies such as local councils are directing digital advertising networks as an official intuitive. In some cases, local councils are managing a collection of buildings or facilities like car parks. LED screens are used here to convey messages and announcements. This kind of a platform is proving to be very helpful in supporting tourism by means of advertisements.

Localized digital advertising is currently a hot an upcoming trend in digital signage. Localization has proved to be successful in bringing together a community or a network by providing essential information targeted to the right market.


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