While video walls have surged in popularity since the late 2010s, their journey began decades earlier. Today’s stunning displays share little similarity to those early predecessors, thanks to the advancement in LED and LCD panel technology. What was once considered an extravagant investment has transformed into an essential competitive advantage across many industries. In a market where capturing audience attention is key, businesses use these large immersive experiences to deliver impactful messaging that smaller displays cannot match. In this blog post, we’ll be looking at the cost of video walls versus their ROI (return on investment).
Understanding your investment
Before you can start calculating video wall ROI, you must understand the cost to you if you were to invest in a video wall, which includes the actual video wall cost, the installation charge and your ongoing running costs.
Video wall costs
There is a range of video walls available to choose from, with either LCD or LED displays, meaning that putting a single figure on the cost for a video wall wouldn’t be a fair assesment but to give you an idea of costs we’ll list out what the more basic end of the market for each would cost based on a 2×2 formation with 55″ displays.
For an LCD video wall, the cost of the displays would be around $6,500 or £4,700.
While an LED video wall would set you back around $13,000 or £10,000.
There will also likely be additional costs for items such as advanced video wall processors (basic processor with 2 inputs, 4 outputs, approximately $3,200/£2,000) for your content requirements and mounts to hang the display (pop-out mount, approximately $270/£250).
Delivery of the video wall will also be an additional cost, but will vary dramatically by location.
Cost of video wall installation
There will also be an additional cost for video wall installation, which will vary greatly depending on your location, your environment and the size of the video wall.
It is also worth noting that a site survey may be needed before installation takes place to help determine the requirements, which will also be of varying cost.
Ongoing costs of having a video wall
Once your video wall has been purchased and installed there are then a few ongoing costs which include maintenance and support (with most video wall suppliers, you are likely to be offered different levels of support which you may be billed for annually – you will usually confirm this during purchase) and the cost of the power consumption which will vary but choosing between either LED or LCD will affect this cost.
Check out our video wall buying guide to help you to find the best solution to fit your needs.
Quantifying the true ROI of a video wall
Now we have an idea of the cost of a video wall, let’s look at the ROI and business benefits of video walls, which can be felt both directly and indirectly.
Revenue generation
Revenue generation is often a big reason for the investment in a video wall, especially within industries such as retail, hospitality, restaurants and stadiums.
Advertising on video walls can significantly increase sales by enhancing customer engagement and drawing attention to products and promotions. Interactive digital signage increases sales by clearly communicating information to assist in making informed purchasing decisions. Studies believe it can increase sales by up to 30%.
There is also the potential for some industries to sell advertising space on their video wall to local businesses or other brands, creating another channel of revenue generation alongside its everyday use.
Brand perception and visibility
Brand perception and brand visibility aren’t something that can be easily quantified, but are elements that can’t be forgotten about.
Large digital signage resonates with passersby and makes a clear impression, for example, in retail the brand being advertised will be at the top of customers’ minds when they have a need for the product.
Studies have found that dynamic digital displays like video walls can increase brand awareness by up to 48%.
It can also help with brand perception as viewers see a company making smart investments and are likely to be thought of as a forward-thinking brand. They effectively immerse clients and employees in the brand experience, creating a lasting impression.
Video walls are also a great medium for storytelling, and research shows that when a customer feels a strong emotional connection to a company, they are more likely to become loyal customers. 57% of consumers spend more on brands that they are loyal to.
Cost avoidance
By investing in video walls, you eliminate a myriad of other costs and lost time. This includes print costs of alternative advertising.
Imagine as a company you are looking to get your key messaging out there to your audience, you don’t want to have to wait for your ads to be printed, digital signage minimises the turnaround time.
While the initial cost of a video wall can seem significantly higher than a few printed displays, the long-term savings from removing printing costs, reduced waste, and easier updates can make it a more cost-effective solution. It is reported that businesses can reduce printing and maintenance costs by up to 50% through digital signage.
Video wall success stories
To get a true understanding of video walls and their benefits on an individual basis and for different industries, we’ve included a couple of snippets from case studies with our customers who have purchased our video walls. Make sure to read the full case study if you are interested in getting more details.
Florida Atlantic University
Florida Atlantic University (FAU) is a student-centered public research university committed to providing life-changing academic experiences.
LamasaTech provided our extreme narrow bezel 55″ LCD video walls, a total of 18 panels in a 6 x 3 configuration. The video wall provides an immersive viewing experience with lifelike colours and HD resolution, and near-seamless image.
The FPL InETech Center provides students with real-life learning experiences with state-of-the-art technology that they will potentially use once in their careers.
The team at FAU believe that the video wall solution at the center will help the university to recruit the brightest students, attract great professors from across the nation and create amazing career opportunities for graduates.
Spearhead Hospitality (Valedor)
Spearhead Hospitality is a Chicago-based hospitality company that manages a diverse portfolio of properties.
When planning the opening of their latest venue, Valedor, their vision was to create a customer experience that stands out from other bars in the area.
LamasaTech provided our zero bezel 55″ LED video wall cabinets in a 4 x 2 configuration, spanning across 5 metres behind the bar.
For Valedor, their truly seamless video wall is a focal point of the bar and showcases eye-catching, high-resolution digital artwork, which contributes to the dark and moody ambience, complementing the interior design and creating a memorable customer experience.
The seamless screen has been pivotal in bringing the vision to life, contributing to the ambience of the bar and playing an important role in the customer experience and standing out from other venues.
Is a video wall worth the investment?
Video walls are no doubt a significant initial investment for businesses, but they can deliver equally significant returns over time when properly implemented in the form of increased sales, brand awareness, visibility, cost elimination and more!
For organisations considering video wall technology, the benefits and return on investment can be endless when used strategically.
To help ensure you make the most out of your video wall, we have a variety of other posts which can help:
The Power of Video Walls for Creating Eye-catching Advertising Campaigns
The Best Video Wall Uses For Your Industry
How to Create a Video Wall Content Marketing Strategy that Engages Your Audience
Success lies not only in the hardware itself but in the strategic approach to implementation. By clearly defining objectives, right-sizing the solution, investing appropriately in content, and measuring outcomes, businesses can ensure these impressive visual technologies deliver returns long-term that justify their upfront investment.
Ready to add the benefits of a video wall to your organisation?
We’d love to hear about your project, so get in touch and we’ll help you find the best solution for you.
LamasaTech is a leader in digital display technology. We support customers across a range of industries including retail, military and defence, government and public sector, technology, hospitality and education!
