Is it profitable to start a LED screen business? Cost of advertising on outdoor LED screens Business plan for LED advertising screens.

This question is on everyone's mind who is planning to invest in a MEVY LED screen. It will also be of interest to companies that have long occupied the niche of outdoor advertising, since the use of an LED screen is very convenient and effective. Let's consider this issue in more detail, we will give an approximate calculation with average indicators, using an example of which you will have a more vivid picture of the project as a whole. And so, after conducting research on the outdoor advertising market, our company received very interesting figures.

Calculation of payback for companies working in the field of outdoor advertising using the example of the most common size of advertising space, a 6x3 meter billboard. The minimum placement period is one month, and the cost in the company’s price list is also indicated for one month. The average for the regions is 20 thousand rubles. this is profit for the company from one surface. What to do with clients who would like to be placed on the same surface at the same time!?

As a rule, they are offered an alternative option installed in another location or asked to wait until the current client's lease expires. But advertising and advertising campaigns (meaning the planned promotion of goods and services) of clients have their own seasonal relevance and their own target audience, where the proposed alternative option is simply not satisfactory, and there is no time to wait. In such cases, the client often “takes away” his advertising budget to another advertising direction or another company. And this is lost profit for the owner of the advertising surface!

This is where the fun begins! An LED display installed in its place will help you retain current customers and not lose new ones, since one LED screen can replace up to 30 classic boards with a printed surface. And this is a completely different profit from one advertising space per month!

For those who like numbers, here is the calculation. Airtime is sold on the LED screen, usually a 5-minute block filled with customer commercials, which is broadcast in the screen operating mode. Five minutes is 300 seconds, the timing of one commercial is from 10 to 20 seconds. And so we divide 300 seconds by the timing of one video, for example, 10 seconds, and we get 30 clients at one point per month. Multiply the number of clients by the cost of placement in a specific installation location and here is the amount that the LED screen earned for you!

The cost of making a video is lower than the cost of printing a banner.
- There are no costs for installation and dismantling of printed posters
- Instant placement, as well as editing of any errors or conditions, for example, promotions/promotions.
- There is no need to maintain a staff of printed poster installers
- The LED screen always attracts attention with its dynamism

A full-color all-weather LED screen with a pixel pitch of 6 mm (P6) and a size of 600 x 300 cm, taking into account installation and substructure, costs 1088 rubles in our company. (as of 2019). To this price it is necessary to add the cost of metal structures, design documentation and installation, on average it is 200-300 rubles. We receive a one-time investment amount of 1388 tr. Monthly expenses include electricity bills. An LED screen of this size consumes an average of 8.5 kW/hour; when operating 20 hours a day, the electricity consumption is 170 kW. Tariffs are constantly changing, but the average can be subtracted and for organizations is 9.5 rubles per kWh. We get a constant monthly electricity consumption of ~ 50 tr. As for the cost of placement, let's take the already known price of 20 thousand rubles. Filling out the entire time block in the first month of screen operation is not difficult for outdoor advertising companies, but as a rule, it takes from one to two months. For a visual calculation, let's take 10 clients in the first month. With each new month, 5 additional clients come to us and so on until we are completely filled with 30 advertisers. Now let's put everything in a table:

The table shows that the payback of financial costs occurs in the fifth month of operation! This calculation is for informational purposes only and is not a real business plan. The costs do not include payment to the designer for the production of advertising videos, to the sales manager for searching for clients, as well as taxes and service costs. Also, the cost of placement may vary depending on the length of the commercial and the number of impressions. If you are interested in a detailed calculation and business plan for such a project, please contact our company and we will calculate a similar table according to your region.

LED screen under the affiliate program is first and foremost benefits from selling airtime. This program is designed for the joint purchase of an LED screen, and making a profit according to the share of each partner. If you are looking led screen at low price, then the FSLED affiliate program is what you need. The fact that over all stages of the project from development and installation to filling the screen with content, Only highly qualified specialists work- not just a reason for pride, but also a feeling of confidence in working with partners. We want to convey this confidence to you.

What is included in the price of an LED screen

A new LED screen will require some investment and time to install. The cost of a 3 x 6 screen, P10 layout, consists of:

The approximate cost of an LED screen is 800,000 rubles, excluding its metal structure

The average cost of a project, metal structure and installation of an LED screen, varies from 50,000 to 150,000 rudder, and this depends on the complexity of the design

Screen approval and additional costs average 100,000 rubles

According to preliminary calculations, we can say that the cost of an LED screen measuring 3 x 6 meters, layout P10, is 1,000,000 rubles. For one partner, the total amount is divided in half, and will be equal to 500,000 rubles.

What does profit consist of?

Profit from LED screens is achieved through the sale of advertising videos. The most common commercial is a 10-second one, which is broadcast every 5 minutes, with the screen operating for 24 hours. The total number of impressions of this video is 288 times per day. Based on all of the above indicators, it is possible to calculate the maximum number of advertisers.

Often, the average occupancy of LED screens in the 3rd month of operation is 15-22 advertisers, that is, on average there are 18. Now it is possible to determine the profit for one month of selling a 10-second commercial.

The average cost of a video is 10 seconds. for 1 month: 18,000 rubles

18 * 18,000 = 324,000 rubles profit

This profit is not pure, and from it you need to subtract the costs of electricity and pay for renting the place.

Costs for electricity (0.4KW/hour/m2) and Internet: 25,000 rubles per month

Administrative expenses (space rental 800 rub/m2): 14,000 rubles per month

324,000 - (25,000 +14,000) = 285,000 rubles of net profit per month

Having received the net profit, you can find out how many months it will take for the screen to fully pay for itself.

Predicted payback period for screen 3*6: 1,000,000 / 285,000 = 3.5 months + 3 months for promotion = 6.5 months

These calculations were made on the basis of an already existing project, which in 6.5 months achieved net profit. Objects that have fully paid for themselves are displayed in a special section “Objects for investment”, in which you can also make an investment.

What determines the return on investment of a screen?

The payback of LED screens directly depends on the installation location, operating hours and airtime sold. One of the indicators of screen payback can be considered GRP rating, which includes: audience coverage area, screen viewing angle, barrier-free visibility of advertising content and a solvent audience who saw the advertising broadcast.

To achieve a highly attractive screen, you must follow the rules

The coverage area and viewing angle of the screen should include various places of large audience concentrations, and the more such places, the higher the GRP of this screen.

Find out more about the stages and methods of paying for the screen in the "Your Investments" section or ask our manager questions by calling the hotline 8-800-700-87-60 or via

Thomas Pukas

In this issue we bring to your attention an article by Tomas Pukas, director of the Lithuanian company “Actual City Media” (ACM), which owns a network of LED screens. The article, from our point of view, is extremely useful and informative, especially the descriptions of distinct trends in the outdoor video advertising market. The article appeared on the website of the electronic magazine “Sign Industry” in English, translated and published in our magazine with the kind permission of the author.

The use of LED screens marks a qualitatively new level in the development of outdoor advertising. A network of outdoor LED screens is no longer a new product, but it is still premature to call it a traditional form of advertising. Outdoor video screens should still be regarded as an alternative to standard static outdoor advertising, which has certain strategic advantages over it.

In any case, the use of LED screens marks a qualitatively new level in the development of outdoor advertising. Numerous articles have already discussed the strengths of broadcasting information on LED screens compared to static outdoor surfaces. There is no point in repeating ourselves, and therefore this article is devoted simply to one successful example in Lithuania. We will simply present certain solutions that are very important for the development of an outdoor video screen network.

Success in a single small European state

Despite the fact that outdoor LED screens still have to prove their worth, they are the main link for all types of outdoor advertising. LED technology, due to its efficiency, is becoming increasingly respected and recognized.

One of the best examples of using networks of outdoor LED screens is the network of outdoor video screens of the Lithuanian company “Actual City Media” (ACM) with screens in 5 main cities of Lithuania. In just 4 years, ACM has successfully grown into a network of 10 outdoor screens. The company is not going to stop there. By the end of this year, she plans to install 8 more LED screens. This factor distinguishes ACM from network owners in larger European cities who stop the development of their networks at 4 or 5 screens.

In Lithuania, special attention is paid to installing such video screens in strategic or simply promising places. In this regard, there is close cooperation with research companies that determine the most advantageous locations for installation: near shopping centers or busy intersections with dense traffic and pedestrians. It is estimated that approximately 4 million people pass within view of outdoor screens every week. Considering that the country has a population of about 3.7 million, the above numbers are truly impressive.

The Value of Planning

According to ACM director Tomas Pukas, one of the reasons for the rapid success of networked outdoor LED screens in Lithuania is the correct placement of video screens and a strategy aimed at serving customer needs. “The main role in the advertising business is played by the effective distribution of airtime. For these purposes, we constantly conduct research to determine the intensity of traffic flows depending on the time of day. Thus, we have defined completely different types of flows near each screen, which allows us to offer our clients the most effective layout plan,” says Pukas.

The duration of commercials broadcast on LED screens ranges between 10 and 15 seconds. The video is usually repeated once every minute or 2 minutes. This length of the video is suitable for broadcasting brief information. Constant repetition of videos allows you to better remember the broadcast information and attracts a larger audience. Although approximately 90% of videos are created specifically for broadcast on outdoor LED screens, television commercials can also be easily adapted for these purposes. It is also necessary to take into account that information for advertising on video screens should be short and understandable, made using large images or pictures and large text fonts. Otherwise, broadcasting a video clip may be completely ineffective.

The company's clients can also receive post-campaign research conducted by ACM itself. “Analysis of the research produced can help the client develop a more accurate and effective broadcast plan for the next advertising campaign. This makes it easier for them to determine in which city the video should be broadcast, how often and its duration. This allows you to achieve better results and avoid making “extra” broadcasts,” says Pukas. Videos are broadcast on ACM LED screens 18 hours a day: from 6 a.m. to midnight.

Not only advertising is broadcast

The majority, approximately 70%, of the material broadcast on outdoor screens in Lithuania is commercials. In addition to them, news, announcements of various events, and weather forecasts that are important for ordinary people are broadcast. According to Pukas, broadcasting information helps maintain attention to the materials appearing on screens. “People don’t treat our screens like regular outdoor media.” They know that when they look at the screen, they also see information about various events, weather forecasts for the next day, etc. This means they prefer video screens to regular static boards,” says Pukas.

Advertising perception factors

The findings of research agencies were used to determine the effectiveness of advertising. Respondents were shown videos on a computer screen and later asked if they had seen the videos on outdoor LED screens installed in their city. The results of the study showed that the effectiveness of advertising in the main cities of Lithuania where video screens are installed varies from 23% to 64%.

According to Pukas, the perception and memorization of an advertising campaign depends on the specifics of the information itself. It was found that auxiliary campaigns are watched several percent more than image campaigns. Potential buyers pay attention and remember mainly promotional campaigns, where they are usually lured with discounts and prizes. In addition, men and women pay attention to different advertisements. Perception is also divided by age groups.

Experts say such differences are caused by the specificity of the products and services advertised. “Each advertising campaign has its own target audience. Therefore, it is natural that it only affects a certain group of people. For example, Internet advertising on ACM LED screens was better received by men under 39 years of age, while advertising for diarrhea drugs was better received by adult women,” says Pukas. The results of a study on advertising perception showed that the use of other types of outdoor advertising during an advertising campaign, the attractiveness of the offer, the reputation of the advertised brand, the quality of the video and other factors can also significantly affect people's perception of advertising.

Growth Forecasts

Research data on the volume of advertising broadcast on LED screens showed that over the past year, compared to 2004, the number of advertising seconds sold in an advertising unit on a video screen has doubled. The increase was 90%. This year the company predicts an increase in the number of orders due to the fact that the network of outdoor LED screens in Lithuania will expand from 10 to 18 screens. New installations will also appear in cities with a population of up to 100,000 people.

New services

But again, in order to win a larger share of the market, it is necessary to offer customers new convenient services. Therefore, ACM introduced the “LiveAd” system, which allows clients to adjust the content of their advertising using a computer and Internet access. This service was introduced at an unusual time, when information about the results of the European Basketball Championship match was broadcast in “real time” on a network of outdoor screens. The results were sent to the screen by one of the workers, who watched the matches in the bar and updated the results using a pocket computer and Internet access. Thus, everyone who passed by the LED screens was aware of the progress of the matches.

The “LiveAd” system has become interesting to those companies that are accustomed to making changes to the content of information and advertisements. Clients who use this system include daily newspapers, gaming establishments, news portals and television channels. According to Pukas, customers are also interested in other offers prepared by operating companies of LED screen networks, which allow several operating companies to be united into one network, giving them the opportunity to coordinate calculations and prices tied to research and perception, efficiency analysis.

Pukas says customer needs will only grow in the future. Thus, advertising companies must apply new methods of work, look for successful solutions that will suit both them and the clients who place their advertising on outdoor screens.

LED screens are a medium that cannot be effective on its own. The main condition for good sales thanks to such equipment is a high-quality advertising campaign designed for a specific target audience. Subject to the intervention of competent specialists, advertising on LED screens brings maximum income and has a number of advantages:

• Large audience reach. Especially if you advertise on the street - every passerby will be your potential client.
• 24/7 operation. The screen is clearly visible day and night thanks to the bright backlight.
• Visibility. Thanks to its bright, rich colors, the LED screen attracts the attention of everyone around you.

Criteria for selecting a screen for advertising

There are several main criteria by which you should choose an LED screen for outdoor advertising:

• Size. It directly depends on where you are going to mount the screen. Or more precisely, from what maximum distance will they look at the screen. For example, an advertisement intended to be installed on the roof of a high-rise building must be quite large in order to be clearly visible from afar.
• Permission . This parameter is selected based on the minimum distance of the viewer from the screen. Screen size is taken into account. The further away the advertisement is, the less detailed it can be. This will significantly reduce the price.
• Brightness. Selected depending on the type of screen: street/indoor, as well as additional conditions.

Screens for outdoors and indoors have options with increased brightness.

For example, an outdoor screen can be located on the sunny side. Then its brightness should be at least 7,000 cd.

All this is very important, and if you are not sure of your choice, it is better to seek help from professionals, because The effectiveness of advertising and directly your profit depend on this.

It is equally important to choose the right manufacturer and supplier of the product. Please note the following factors:

• Portfolio. Naturally, an experienced company will do a much better job, especially if a specific screen installation is required (for example, on the roof of a building). Such a company should have a corresponding portfolio, which a representative will be happy to show you so that you can be convinced of their experience.
• Guarantees. Don't buy screens from companies that don't guarantee them - it's too expensive a risk to be worth it. Truly reliable suppliers are ready to bear responsibility for the quality of their goods, including service and technical support.
• Technical equipment. Professionals in their field are required to have a considerable amount of specific equipment with which to install the screen.

How much will advertising on an LED screen cost?

If you have any doubts about the effectiveness of LED screens or you do not have a suitable place for it, you can use the service of renting such advertising.

Its cost is not as high as it might seem, and is approximately similar to the price of advertising on billboards and prismatrons. And this despite the fact that LED advertising is much more effective. Such screens are most often installed in the city center or the most visited places with a large flow of people - this increases the efficiency and profitability of advertising.

On average, renting a screen for a 10-second video is about 4 thousand rubles, and they bring in much more profit. According to estimates, in the center of a large city, about 20-30 thousand people watch the screen every day - and this is a colossal audience reach that only LED screens can provide.

What if you buy?

The table shows the average cost of screen installation. However, you must remember that the price is significantly influenced by factors such as location (for example, mounting a screen on a roof is much more difficult than on the wall of a building), image quality and obtaining permission from the authorities to place advertising.

No less important is the quality of materials and components, on which not only the quality and reliability of the LED screen depends, but also the reliability of the design itself.

Special attention should be paid to protection from damage, wind and bad weather - after all, LED screens are designed for many years of operation and profit, which means the task of the craftsmen is to protect them from dust, moisture, temperature changes and mechanical stress.

How much profit can you get from renting an outdoor LED screen?

Not everyone needs advertising for personal purposes. Some businessmen buy and install LED screens in the most visited places in the city in order to subsequently rent them out, thereby ensuring regular and considerable profits.

This is due to the fact that not everyone wants or can afford a full LED screen installation, and by renting out LED advertising, you provide profit to your clients and, accordingly, to yourself.

If you are going to rent out an LED screen, you need to take into account that it needs periodic maintenance to check the reliability of the mounts, minor repairs or changes in settings.

LED screens are often rented by those who need them for one time - for example, for a concert, an important event in their personal life (such as a wedding or anniversary), advertising campaign or presentation for large companies. All this is a stable source of income, the main thing is to provide potential buyers with high quality and the maximum selection of screens. It is their purchase and installation that will be the main costs - after all, different people will choose different screens depending on their goals.

However, such an investment only makes sense for an entire company that deals with LED advertising. For a private business, one large-scale screen in the center of a large city is enough to make a profit every month.

In any case, LED advertising is your step into the future, because they are slowly replacing other, less effective methods of advertising. Which means investing in LEDs is one of the most profitable solutions of our time.

It can become a profitable business if it is organized correctly.

Advantages and disadvantages of business on LED screens

• decent profitability (up to 50%);
• modernity;
• prospects.

Now about the cons. Despite all its attractiveness, this type of activity has many nuances and disadvantages. Main disadvantages:

• large initial investments (from 1 million rubles);
• payback period from 1 to 2 years;
• many other nuances associated with creating, registering and running a business.

Where to start?

If the size of the authorized capital, payback period and other operational nuances are not scary, and a firm decision has been made to purchase an LED screen for renting it out, it is necessary to develop step-by-step, clear plan.

The first thing you need to start any business with is a thorough study of this field of activity in the locality where you plan to install the screen. It is important to study human traffic in the busiest points of the city, age categories, interests of citizens, competing companies, and demand for this type of service.

In cities with a small population, advertising on LED screens may simply not be in demand. An important point is the presence of qualified personnel who will service the screen (sometimes the service is provided by a screen manufacturer/supplier, but in the future, in-house specialists will still be needed) and a company that creates advertising content for placement on LED screens.

If monitoring shows promise and initial capital has been collected, you can move on to registering a business and purchasing equipment.

In this business, the right location is 60% of the success of the enterprise.

Central squares, facades of buildings in the business center of the city, busy highways, public transport and establishments with high daily traffic (shopping centers, centers providing services to the public, etc.)

After which you must obtain permission from the city administration to install a screen in accordance with the rules for installing outdoor advertising structures, or enter into an agreement to install a display on the facade of a building or in public transport and with this agreement apply to the administration to obtain permission.

You can purchase an interior screen and enter into an agreement for its placement inside a shopping center or other public institution. In this case, the agreement is concluded only with the owner of the building; permission from the city authorities is not required.

It is also worth considering renting an office where meetings with clients will take place. Of course, at first you can manage your business from home, holding meetings at the customer’s premises, but the presence of an office where copies of state registration certificates, administration permits and other documents are located instills much more confidence in potential clients.

The very fact of the absence of office space can play into the hands of competitors, because a company engaged in this type of activity without an office is psychologically perceived as a group of scammers.

Also, it is inconvenient to manage employees from home, who will be needed to set up the screen and download advertising videos.

Required documents

Documents for registering a business for leasing an advertising LED screen:

• A copy of the state certificate legal entity registration.
• A copy of the tax registration certificate.
• A document confirming the consent of the legal owner to install an advertising structure on a building that belongs to him.
• Confirmation of ownership or lease agreement.
• Confirmation of payment of state duty.
• The original project for installing an advertising structure with drawings, a site plan and drawings referenced to the site on a scale.

This permit is issued by the administration for 5 years.

Choosing an installation location

Is it worth assembling an LED screen with your own hands or should you give preference to finished products? All the pros and cons are described.

Average monthly earnings

The average monthly earnings on an LED screen depend on the locality, location of the screen, cost of advertising, and electricity costs. For example, when broadcasting 1000 seconds (100 impressions/day, 10 seconds each) per day, the client pays approximately 25,000-30,000 rubles per month without bonuses and discounts. If the screen works 18 hours a day, it can broadcast from 550-860 impressions. By concluding a contract with 5 companies, you can get from 125,000; from 10th - from 250,000 rubles, excluding costs for electricity, space rent, taxes, employee salaries and office rent. These figures are approximate; Each case must be calculated individually.

If you do your business competently and fill all the airtime, you can earn money 750,000 – 900,000 rubles excluding expenses for maintenance, screen maintenance, employee salaries and taxes.

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