Navigating the Hidden Costs of Digital Signage: A Guide to Avoiding Unexpected Fees
The global digital signage market was valued at $18.7 billion in 2020 and is projected to reach $26.1 billion by 2028. This rapid industry growth is no surprise, as digital signage has become the driving force behind the advertising and communication strategies of businesses across various industries—including corporate, transportation, healthcare, and especially events and hospitality.
And the organizations implementing digital signage aren't the only ones who love it—Infotrends reports that digital signage can increase brand awareness by 48% and boost purchases by 30%. Digital signage captivates and informs guests at the same time via massive LED walls, interactive touchscreens, digital menus, and more.
“The beauty of digital signage is that it sends the right message to hotel guests and attendees at the right time—whether it's an event update, timely guest information, or property navigation.” Rich O’Brien, Vice President of Business Development at Xpodigital, said in a recent interview with the Modern Hotelier.
With such compelling benefits, investing in digital signage is seen as a no-brainer for hotels and event venues looking to elevate guest experiences, improve satisfaction, and drive revenue. However, many businesses interested in investing in digital signage are falling victim to hidden fees, otherwise known as, “Oh, by the way(s),” when contracting with digital signage providers.
Picture this: you're reviewing a proposal from a digital signage provider, eager to see the bottom-line cost. But as you scan through the document, you realize that certain costs including taxes, shipping, and installation are missing. You either forget to inquire about these costs or assume they're already included. This single oversight can lead to big unexpected costs down the line, adding as much as $10,000 or more to the final bill.
Ultimately, hidden fees can make or break a digital signage deal, sour relationships, and erode trust between providers and clients. In industries like hospitality and events, where multiyear contracts are common and strong partnerships are vital, these concealed costs can be particularly arresting.
To reap the benefits of digital signage without falling prey to hidden fees, it's essential to be proactive and remain informed. In this article, we'll explore the most common hidden costs to look out for when considering a digital signage provider and offer actionable tips for how to avoid hidden fees.
5 Common Hidden Fees in Digital Signage
While every provider is different, there are several hidden fees or “Oh, by the way(s),” that can catch businesses off guard when implementing digital signage solutions. Here are five common ones to be aware of:
Installation and Setup
These fees can be substantial and are often not included in the initial proposal, making them one of the most important hidden costs to evaluate when considering a digital signage solution.
Taxes and Shipping
Be cautious of providers who advertise attractive base prices but omit taxes and shipping fees from their initial quotes. Always request a full, itemized quote that includes all applicable taxes and shipping costs to avoid unexpected expenses and accurately budget for your digital signage investment.
Content Management and Creation
Creating engaging, branded content is crucial for the success of a digital signage program, but the costs associated with content creation tools, stock media libraries, or professional services can add up quickly and are often overlooked.
Hardware and Software Upgrades
As technology evolves, upgrading displays, media players, or software to keep pace with new features and content demands can come with significant costs that may not be apparent at the outset.
Integration and Customization
Integrating digital signage with other systems or customizing the CMS and content creation tools to fit specific needs can provide valuable capabilities but often involve extra development work and support costs that can catch buyers off guard.
4 Tips for Avoiding Hidden Costs
Uncovering and avoiding hidden fees in digital signage proposals can be challenging, but it's essential for ensuring a successful investment. Here are some tips to help you navigate the process and make informed decisions:
#1: Request Detailed Proposals
Insist on receiving comprehensive, itemized proposals from potential digital signage providers. The proposal should clearly outline all costs, including hardware, software, installation, content creation, and ongoing maintenance. If any costs are missing or vague, ask for clarification before proceeding.
#2: Understand the Total Cost of Ownership
Evaluate the total cost of ownership (TCO) for your digital signage solution, not just the upfront expenses. Consider factors such as:
Hardware and software upgrades
Content management and creation
Integration and customization
Training and support
Onsite maintenance and repair
By understanding the full scope of costs involved, you can budget accurately and avoid surprises down the line.
#3: Ask About Scalability and Flexibility
As your digital signage needs evolve, you may need to add new displays, locations, or features. Discuss scalability and flexibility with potential providers to understand any additional costs associated with expanding or upgrading your solution. Look for providers that offer modular, scalable solutions that can grow with your business.
#4: Prioritize Transparency and Service
Choose a digital signage provider that prioritizes transparency in their pricing and service offerings. Look for a company that openly communicates about all costs involved and provides clear, detailed proposals. Additionally, consider the level of support and service offered, as a reliable partner can help you avoid costly downtime and technical issues.
Transparent Pricing: A Win-Win for Hotels and Vendors
The Walt Disney World Swan and Dolphin Resort partnered with Xpodigital to support the digital signage needs for their annual Gartner Supply Chain Symposium. By outsourcing to Xpodigital, the resort saved on costs related to infrastructure, staffing, and benefits.
Xpodigital's transparent pricing and reliable service made the partnership a sound financial decision for the resort. Xpodigital provided detailed proposals outlining all costs, helped the resort understand the total cost of ownership, and offered a scalable solution to meet evolving needs. Most importantly, Xpodigital prioritized transparency in their pricing and provided exceptional ongoing support, including 24/7 IT access to ensure smooth operations.
Choosing the Right Digital Signage Partner
Impressive digital signage, like LED walls and interactive touchscreens, can transform how hotels and venues engage guests. Xpodigital provides end-to-end digital signage solutions that deliver maximum ROI for your business.
When you partner with Xpodigital, you benefit from:
State-of-the-art displays that captivate guests
Easy management of branding, promotions, and dynamic content
Expert installation and maintenance support
Transparent pricing and a focus on your success
To learn more about how Xpodigital can elevate your guest experience with cutting-edge digital signage solutions, visit www.xpodigital.com.
