How to Create a Digital Signage Budget That Works for Your Small Business

It can seem overwhelming to create a budget for new technology in your business that you may not be familiar with. However, mapping out the exact components and their potential costs will prevent you from overspending or undershooting your needs. 

This article will provide you with price estimates based on industry standards. It assumes that you’re running a small business with essential digital signage needs in mind, such as clear and crisp visuals, real-time updates, and ease of use. We’re keeping things simple—this guide is meant for small businesses that don’t need overly complex features like advanced interactivity or sophisticated data analytics.

1. Understand What Digital Signage Will Cost You

Before setting a budget, you need to understand what factors drive digital signage costs. Your budget should cover hardware, software, installation, content creation, and ongoing maintenance.

Here’s a breakdown of typical cost elements:

• Displays: This is likely your largest upfront cost. You’ll need to decide whether you want commercial-grade displays or consumer-grade ones. Commercial screens are built to withstand longer hours of use(typically 24/7), but they come at a higher price. They cost anywhere from $ 300 for 32” to $3000 for 80” and above. 
• Media Players: These are compact devices that connect to your screen and send the content from your computer or software to the screen. Some systems come with a built-in media player, while others require a separate device. Most traditional setups use a separate media player for each screen, but this can be expensive. Instead, opt for a centralized player that distributes content to all screens via a network connection. 
• Software Licenses: This is the brain of your digital signage system that enables you to create and manage content. Options range from basic solutions to more powerful, cloud-based platforms. Don’t forget to factor in subscription fees, which are typically billed monthly or annually. 
• Installation and Setup: You’ll need someone to mount the display, connect the media player, and configure the software. If you lack in-house expertise, this can add to your budget.
• Content Creation: For professional-looking content, you’ll want to hire a designer, invest in templates, or subscribe to a content service. But these costs can be reduced or even eliminated by investing in good software. When selecting a software provider, make sure they offer design tools, pre-made templates, and easy drag-and-drop functionality.

This means you can create eye-catching content without needing a design expert. Although software can’t replace the creativity of a professional, it gives you enough flexibility to create content that still looks polished and professional.

• Ongoing Maintenance: After everything’s set up, you’ll need to maintain the hardware and keep the content updated. Allocating funds for maintenance ensures that the system continues to run smoothly over time.

2. Determine Your Business's Specific Needs

Small businesses come in all shapes and sizes, and so do their signage needs. Are you a retail store trying to display promotions? A restaurant offering digital menus? Or maybe an office space looking to communicate internal updates? Your specific use case will influence your budget.

Let’s break it down by common business types:

• Retail: You might want multiple screens across the store, showcasing deals, product demos, or brand videos. This setup requires several displays and possibly advanced content management software to handle different zones. Your budget will lean heavier on hardware and software.
• Restaurants: In a quick-service environment, digital menus are a must, meaning the focus will be on screen readability and quick content updates. Your budget here should account for high-brightness displays (to be visible in daylight), easy-to-use software, and potential integration with POS systems.
• Corporate Offices: Here, digital signage is used for internal communication, like announcements and event schedules. Your hardware demands might be lower (since the signs don’t need to be ultra-bright), but you’ll want a user-friendly content system so your team can update it regularly.

3. Evaluate the Type of Content You’ll Need

Your content strategy will directly influence how much you need to allocate for content creation and management.

Here are the main questions to ask yourself:

• Do you need dynamic, frequently updated content? If your signage displays live data like sales figures, social media feeds, or real-time promotions, you’ll need software that integrates with these systems, which typically comes with higher costs.
• Will you need professional content design? If you want your signage to stand out, having high-quality graphics and videos is important. Hiring a designer may seem like an upfront expense you could skip, but poor content will reflect poorly on your brand.
• How often will you update your content? If you’re a restaurant updating your menus daily, you’ll need a solution that makes it easy to refresh content on the go. More frequent updates usually require more powerful content management systems with scheduling features and automation options.

4. Find the Right Hardware Without Overspending

Hardware choices can make or break your budget. Although it’s tempting to cut corners, investing in reliable equipment can save you money in the long run. Commercial displays cost more but are specifically designed to handle long hours of operation and higher temperatures. They also typically come with longer warranties.

Here’s how to balance quality and cost:

• Display Size and Type: Choose a screen size that fits the space, but don’t go overboard. For small businesses, a 32- to 43-inch display is typically enough for most indoor spaces, especially in areas like entryways or above counters. For menus or promotional content that needs to be seen from a distance, consider something larger, like a 50- to 55-inch screen. 

If you have a high-traffic area where people will be close to the display, a smaller screen (32 inches) with engaging content can work just as effectively as a larger, more expensive one. Also, if you don’t need ultra-sharp 4K resolution, you can save money by going with a 1080p display, which still provides excellent clarity for most content. 

• Media Players: A standalone media player is not always necessary. Many displays now come with built-in System-on-Chip (SoC) solutions that eliminate the need for a separate player. This can save you money and reduce the amount of hardware to maintain. An entry-level professional media player starts from $130 to $300 while an SoC display will cost you anywhere from $400 for a 32” screen to upwards of $1,500 for a 65” screen.

Alternatively, you can use streaming devices that you probably own, such as the Google Chromecast or Amazon Firestick. They can handle basic digital signage needs such as 4K resolution and have sufficient processing power to render your content. 

• Mounting Equipment: It’s often overlooked, but mounting hardware ensures your display is securely placed and visible. For a 32-inch screen, a basic fixed wall mount can be sufficient, costing around $20 to $30. For larger displays up to 65 inches, a tilting wall mount for better viewing angles might be preferred, ranging from $30 to $50.

Pro Tip: Think long-term when purchasing hardware. Skimping on upfront costs could lead to replacements or repairs, which could end up costing you more over time.

5. Choose Software That Suits Your Budget and Needs

There’s no one-size-fits-all approach when it comes to digital signage software, and pricing models vary significantly. Some platforms offer basic functionality at a low cost but might not have the scalability or features you need. Others offer premium features like real-time analytics, integrations, and cloud storage, which may be overkill for smaller operations.

When budgeting for software, consider

• Subscription Costs: Software is often offered as a subscription, billed monthly or annually. Be sure to factor in these ongoing costs, not just the upfront hardware investment. Most software providers such as Look Digital Signage charge $15 per month per screen for features such as multi-location management, real-time updates, built-in apps and designer tools, and more. This pricing is dynamic and becomes more affordable as you scale - you save more with multiple screens, especially with an annual subscription. 
• User-Friendly Interface: Don’t underestimate the importance of ease of use. A complicated interface could require extra training (and time), or you might need to pay a third party to manage the content for you.
• Scalability: If you plan on expanding your signage network in the future, choose software that allows for growth without dramatically increasing costs. Some platforms charge per screen, while others offer discounts for multiple screens.

6. Don’t Forget the Installation and Setup Costs

A lot of small businesses forget to budget for installation and setup. Mounting displays, setting up media players, and configuring software require professional help unless you’re technically savvy.

Installation costs can vary depending on:

• Number of Screens: The more screens you have, the higher the installation costs. A simple single-screen setup will cost far less than multiple screens spread throughout a business. A typical range is from $150 to $400 for basic wall mounts. 
• Screen Placement: Installing a display in a hard-to-reach place (like hanging from the ceiling) will be more expensive than wall mounting - we are talking $400 to $600 depending on the number of screens. 
• Customization Needs: If you have specific content zoning or scheduling requirements, the installer may need more time to configure the system.

7. Budget for Ongoing Maintenance and Support

Displays and media players may need repairs or replacements over time. Factor in potential costs for hardware support, especially if your system is used heavily. With software, top digital signage systems offer support packages, but make sure you understand what’s covered. Are software updates automatic, or do they require manual intervention? And lastly, if you don’t have the time to manage the content yourself, consider outsourcing this task. Many signage software providers offer managed services for an additional fee.

Create a Flexible but Realistic Budget

As you’ve seen, allocating a budget for your digital signage needs doesn’t have to be a time suck. Once you understand the components that drive costs—hardware, software, content, installation, and maintenance—and tailor them to your specific needs, you can set a budget that's both realistic and flexible.

Remember, investing in quality equipment and software upfront can save you money in the long run. And don't hesitate to seek expert advice if you're unsure about any aspect of your digital signage project.

With careful planning and smart choices, you can leverage the power of digital signage to attract customers, boost engagement, and grow your business.