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Why VARs Should Focus on Digital Signage Today

April 08, 2017

Why VARs Should Focus on Digital Signage Today

Value-added resellers (VARs) are seen as a jack of all trades in the technology world, and it’s a position that holds significant benefits. As certain technologies really take off, and others experience a lull, you have the freedom to tailor your product offering appropriately, responding to the needs of the industry. Today, digital signage is one of the biggest boom markets, which is why a growing number of VARs are focusing their efforts on this lucrative field.

Why should you apply more time and resources to digital signage? Here we take a look at the top reasons that VARs can benefit from focusing on digital signage:

Demand is growing.

There’s no denying that digital signage is growing steadily. Customers now come from nearly every segment of society, including healthcare, education, retail, hospitality, houses of worship, events and entertainment, and casinos. Recent research indicates that revenue from digital signage increased about 10 percent in 2015 and should hover around 7 percent this year.  

In certain verticals, demand for digital signage is skyrocketing. Take, for example, retail, which is growing at a rate of about 35.7 percent a year. This market shows no sign of slowing down, as retailers are continually looking for new ways to incorporate digital technology into their stores in order to compete with their online counterparts and make the shopping experience faster, easier and more enjoyable.

Digital signage is becoming even more popular—in retail and elsewhere—as the technology continues to advance. Today’s systems provide a “high-touch” experience to the end user, creating a more interactive, increasingly memorable platform that communicates information in a unique way. From large-scale video walls to wayfinding kiosks to social-media-integrated displays to gesture-recognition screens, digital signage is all about filling a need for the client by using today’s incredibly versatile digital technology.

Prices are falling.

The cost of digital signage hardware has fallen steadily over the last 10 years or so, putting the technology within reach for a much broader swath of customers. Screens in particular have become much more affordable, enabling smaller customers to enjoy a high-quality display for a fraction of what it would have cost a decade ago.

As prices continue to edge downward, expect even more small to medium-sized businesses to join the digital signage movement. For many VARs, this growing market has become their bread and butter.

You can harness recurring revenue.

Today’s digital signage technology also offers a compelling opportunity for VARs to create ongoing revenue. You can provide both hardware and software to your customers through a lease or on credit and can collect monthly payments throughout the term. As with other technologies, you can offer technology warranties and service/support agreements, which help your customers rest easy after the initial installation.

In addition, consider offering to supply your customers with fresh content, whether from a third-party creative agency or through a streaming service. Outsourcing their content creation to someone they trust will enable your customers to focus more on strategy, rather than getting bogged down with daily content demands.

How much of a role does digital signage play in your company? Do you plan to focus more of your efforts in this area throughout 2016?