On the inside, One Times Square—the host of the famous ball drop—is primarily empty office space. On the outside, it’s one of the most recognizable faces in New York City and home to some of the most expensive outdoor advertising in the world.

Jamestown Properties, the building’s Atlanta-based owner, rents out billboard space to popular brands like Dunkin’ Donuts, Toshiba, Anheuser-Busch, and others.

According to a recent Wall Street Journal Post, Dunkin’ Donuts pays $3.6 million a year for its digital signage, which displays ads as well as Facebook photos submitted by fans. The post also noted that Anheuser-Busch InBev pays $3.4 million a year for its sign of frosty adult beverages.

Of course, this money is simply for the space itself. The creation of the actual LED display can cost up to an additional few million dollars. However, with millions of people staring at the building for hours on New Year’s Eve and approximately 370,000 pedestrians entering the heart of Times Square each day, the cost pays off.

Rise of Digital Signage

Television, newspaper, and radio have always been staples in a well-balanced advertising diet. However, in the words of Bob Dylan “Times they are a changing.” And advertisers are being forced to adjust.

Think about how you watch TV nowadays. We watch some of our favorite shows through On Demand, DVR, and other Internet services like Hulu and Netflix, all with limited (at most) commercial interruption. Also, with people now having access to hundreds of channels, it’s more difficult and more costly for advertisers to pick the channels where they market products.

Similar to TV, newspaper and radio have taken significant hits from the Internet as well. We, undoubtedly, live in a world that now thrives on instant gratification—enter digital signage.

Digital signage is a non-intrusive medium of advertising. And it does so in an attractive and comfortable way. LED signs resemble the televisions and computer monitors that people are used to, and they’re capable of incorporating other technologies like Facebook and Twitter that people have become comfortable with.

More than Just Billboards

Naturally, we don’t all have millions to spend on advertising in Times Square. Even if we do, that can’t be our entire marketing strategy. Digital signage doesn’t have to be limited to billboards at all, in fact.

Malls, hotels, airports, and dozens of other places consumers frequent all use digital signage. Whether in the form of a large television display or an interactive kiosk, they all cater to the thirst for instant gratification and sleek design.

The rent in certain neighborhoods will always be high, but there will also always be gems tucked away in up-and-coming neighborhoods where the return may be just as great.

If you’re a company looking to improve your digital signage or take advantage of interactive kiosks, contact ZIVELO for a custom quote.