Ask the Board – December 30, 2019 | IAN GADSBY


“How do you determine when a display needs to be replaced due to visual degradation?”

This is a tough one. When determining when to replace a display, it’s a battle between Operations (me) and the CFO (them).  While we’re both invested in the best choice for the company, I tend to push towards visual perfection, and our CFO towards economic efficiency.  So we have a number of items that determine when/if we replace:

  1. Has the asset depreciated?  The accountants don’t like to write off capital assets early.  So, if the asset has been fully depreciated, we can look into upgrades.
  2. Term of Contract Left.  Because we have set terms on our lease agreements, we need to ensure that we have time to pay off the new asset if we replace it.
  3. How bad is it really?  I use that to encompass a number of things.  Sometimes, we call it ‘visual degradation’ but people really mean “old.”  Old is not necessarily bad.  It may not be as bright, it may have a thicker bezel than its newer cousin, but it’s still very viable and serviceable.  However, if CLIENTS don’t like the way it looks, causing revenue to be impacted, we’re all over making it better, 100 percent of the time.

We strive to have the best product all the time, but compromises always have to be made in business.  All things aside, if it looks like crap, we fix it … period.  It’s our brand, it’s our reputation, and that is priceless… regardless of depreciation or ROI on a spreadsheet.

About Author

Vice President, Digital Technology and Operations
PATTISON Outdoor Advertising

DOOH Networks Council

Leave A Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Send this to a friend