How to Calculate LED display ROI

LED display has also been favored over other advertising mediums because of its flexibility in managing content. It also requires less manpower and resources to deploy.

LED partners should be able to discuss relevant facts with their clients. This includes projected revenues, expenses involved, net sales, benchmarking scenarios and reviewing current sales. It is also essential to discuss the unique challenges that affect led return on investment (ROI), standard solution elements, best practices and some case studies that assist ROI conversations.

What is LED display ROI

The ROI (return on investment) of LED display refers to the ratio between the income obtained from the investment in LED display and its investment cost. It is an important indicator for evaluating the investment effect and can be used to measure whether the investment in LED display is economically beneficial.

Factors in determining ROI

Net Sales and Profits: After a month or two, calculate the net sales and profits. Compare the results with the previous revenue before implementing LED signs. You will begin to see the payoff of your investment.

Projected Revenue: This depends on several factors such as people passing or driving by your business each day and the number of impressions it makes.

Expenses Involved: When calculating ROI of LED display, consider these expenses- Total cost of buying and installing the LED signs, electrical expenses for running the signs and maintenance and labor costs.

LED display ROI calculation formula

The ROI calculation formula is:

ROI=(revenue−total cost)/total cost×100%

For example, if the total cost of an LED display is 1 million, and the revenue brought by advertising and other means in a certain period is 1.2 million, then the ROI is:

ROI=(120−100)/100×100%=20%

From the case, we understand that investing in an LED display project not only recovers the cost but also obtains a net profit of 20%. This investment is usually regarded as a success. For businesses or individuals using LED displays, calculating ROI can help them decide whether to continue investing or upgrade their display solutions.

Measuring LED displays ROI

P6 outdoor LED display

LED display has proven itself to provide the highest marketing ROI. It is the most cost-effective advertising solution for your business since it has the lowest cost per 1000 exposures or CPM. Its CPM is about $0.15 compared to other advertising mediums (like newspaper) with over $5 CPM. This low CPM means that a LED display can reach a broader audience for less money.

ROI is one of the most important calculations a business has to measure. The ROI of LED display is long-term. The ability to measure ROI is a critical aspect of marketing that helps determine the impact and value of the new business investment solution.

With the latest technologies, businesses today have access to every media, guides and tips to track all aspects of their LED display.

Without a doubt, customers who make proper use of LED display for their business will surely reap the benefits. According to the SBA, the US Small Business Administration, LED displays typically bring an increase in business of at least 15%.

From an increase in foot traffic to a dramatic increase in sales and greater recognition in their community, outdoor digital marquee signs proves to be a smart advertising media. The ROI from this investment allows businesses to reach their goals, expand their business and grow their companies.

Conclusion

We have briefly introduced how to calculate the ROI of LED display screens. To get the maximum ROI, the key is how to reduce the cost of LED display screens. This is the key link in investing in LED display screens. As a top second-hand LED display screen supplier, we can provide branded used LED displays at the best price, which can greatly reduce your initial LED cost. We have a large number of inventory LED screens from Unilumin Technology, Absen, Gloshine Technology, etc. There is always one suitable for you. If you need, please feel free to contact us.