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Digital Signage ROI Calculator — What Should You Expect to Earn Back?

· R52 Digital Signage Alliance · 3 min read

ROI calculation showing digital signage return on investment

Building the Business Case for Digital Signage

Before investing in digital signage, you should be able to quantify the expected return. The ROI calculation is different for different use cases, but the framework is the same:

ROI = (Benefit - Cost) / Cost × 100

Where “Benefit” includes both revenue gains and cost savings, and “Cost” includes hardware, installation, software, and ongoing maintenance.

The Three Sources of Benefit

Revenue generation — Sales uplift from promoted products, increased average check, upsells driven by content.

Cost savings — Reduced print costs, reduced staff time managing communications, reduced administrative overhead.

Risk avoidance — Elimination of compliance risks from outdated printed information (incorrect prices, allergen errors, incorrect safety information).

Restaurant: Menu Board ROI Example

Scenario: A QSR with 3 locations, each with 3 menu board panels.

Investment:

  • Hardware: 9 × commercial screens + Alliance Players = £8,100
  • Installation: £1,800
  • Alliance software: £1,620/year (9 screens × £180)
  • Year 1 total: £11,520

Benefits:

  • Average check increase (conservative 15%): £340 average daily revenue × 15% × 365 days × 3 locations = £55,845/year
  • Print cost saving: £6,000/year (reprints, design, distribution eliminated)
  • Total annual benefit: £61,845

ROI Year 1: 437% Payback period: 2.3 months

This assumes modest average check uplift. Many Alliance customers report 20–30% uplifts for specific promoted items.

Retail Store: Promotional Display ROI Example

Scenario: A fashion retailer with 10 stores, 2 screens per store.

Investment:

  • Hardware: 20 × commercial screens = £18,000
  • Installation: £4,000
  • Alliance software: £7,200/year (20 screens × £360)
  • Year 1 total: £29,200

Benefits:

  • Sales uplift for promoted products (25% uplift on 10% of product range): £2.4m annual sales × 2.5% net uplift = £60,000/year
  • Print POS cost saving: £24,000/year
  • Reduced reprints and waste: £8,000/year
  • Total annual benefit: £92,000

ROI Year 1: 215% Payback period: 4.4 months

Corporate Office: Internal Comms ROI Example

Scenario: A 500-person headquarters with 15 screens.

Investment:

  • Hardware: 15 × commercial screens = £13,500
  • Installation: £3,000
  • Alliance software: £5,400/year (15 screens × £360)
  • Year 1 total: £21,900

Benefits:

  • HR communications efficiency (save 4 hours/week of internal comms time at £35/hour): £7,280/year
  • Reduced printed notices and bulletin boards: £3,600/year
  • Reduction in support desk enquiries for communicated information (save 30 min/day × 2 FTE): £9,100/year
  • Improved employee alignment with targets (10% productivity gain from better-informed staff): Difficult to quantify — typically used as qualitative benefit in the business case
  • Total annual benefit: £19,980

ROI Year 1: -9% (Year 1 negative due to high upfront cost) Payback period: 13 months Year 2 ROI: 270%

For corporate deployments, the ROI is typically positive from Year 2 onwards, with Year 1 negative or break-even when hardware costs are amortised over 3 years. The business case is stronger when hardware costs are spread over a 3-year period (ROI becomes positive in Year 1).

Hotel: Guest Experience ROI Example

Scenario: A 150-room hotel with lobby, restaurant, and spa screens (8 screens total).

Investment:

  • Hardware: 8 × commercial screens = £7,200
  • Installation: £2,400
  • Alliance software: £2,880/year
  • Year 1 total: £12,480

Benefits:

  • Spa booking increase (20% more bookings at £80 average): 1,200 bookings × 20% × £80 = £19,200/year
  • Restaurant cover increase (15% increase in hotel guests dining in-house): £180,000 restaurant revenue × 15% = £27,000/year
  • Front desk time saving (30 min/day): £4,550/year
  • Total annual benefit: £50,750

ROI Year 1: 307% Payback period: 3.6 months

Soft Benefits (Hard to Quantify)

The quantifiable ROI calculation above excludes several benefits that are real but harder to measure precisely:

  • Brand equity — Professional screens improve brand perception
  • Staff satisfaction — Better-informed employees are more engaged
  • Customer satisfaction — Informed customers are more satisfied
  • Competitive differentiation — Looking more professional than the competition
  • Compliance — Reduced regulatory risk from always-current pricing and allergen information

Include these in your business case as qualitative benefits alongside the quantitative analysis.

Calculate Your Own ROI

Start your free trial and use your first 30 days to measure the actual impact in your environment. Alliance customers consistently exceed their projected ROI — the conservative assumptions in these examples are designed to be achievable, not aspirational.

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