Is Return on Investment (ROI) or Return on Objective (ROO) ultimately more important and why?
At the end of the day, ROI is the driving factor for a network. But without return on objective, the ROI will never be met. For a small network starting out, it is very easy to look at the ROI for each location/venue installed, but if you are able to provide or exceed the objective, then the ROI will follow.
I have met with a number of companies looking to start a digital signage advertising network and the belief is, if they have the screens, advertisers will line up. To date, I have not seen one of these companies succeed. First and foremost, the screens must serve a purpose in order to drive engagement from the audience. When this goal is met, the advertising will be effective.
Where we have gotten caught is when the objective is not clearly defined up front or changed during the test phase. So before starting any network or campaign, it is imperative that the goals are agreed to at the onset.
Setting the objective first may delay revenue goals, but when met, the revenue goals will be exceeded.