How to Increase Arcade Revenue With Digital Signage

The authentic arcade experience is fortunately still alive and well. In the 1980s and 1990s, amusement arcades were vibrant social hubs for children and teenagers.

It was heaven on earth, where kids could forget about their parents, have fun with their friends, and get lost in pursuing the ever-elusive high score while escaping the pressures of school.

Today, the expanding global gaming community cuts across various social backgrounds and demographics. Digital signage has been a vital part of arcades from the 1980s until today. How can you increase your arcade revenue with digital signage?

The 21st Century Arcades Comeback

When you were a kid, did you ever go to the arcade with your friends? Although most gamers today play at home, people still love the vibe of arcades.

Before the pandemic, the industry was booming and is now making a solid comeback. It is up nearly 50% from its low point in 2020 and is projected to grow by nearly 17% in 2022 alone. If you have your own arcade, learn how to make more money by helping others have fun.

An arcade is a type of entertainment venue that typically houses a variety of video games, pinball machines, and other similar electronic games. The term "arcade" is often used to refer to a type of venue where a group of people can play various video games together, often with the assistance of a game console.

Arcade games are also available in various formats, including physical media such as cabinets and cartridges and digital versions often accessed through the Internet.

Each machine in an arcade generates an average of $300 per week in revenue. After rent, expenses, and labor, your profit margin should be around 30%.

You can make more profit from your arcade if you have some digital signage. How? First, let's look at some trends and how you can capitalize.

Arcade Industry Trends

Video games have come a long way since the 8-bit and pixelated graphics of our childhood. In the next 12 months, we can expect to see some of the most significant and exciting trends in the gaming industry, like the following:

Virtual Reality

The industry has also seen a shift in consumer preferences toward more interactive, immersive, and engaging games.

The past five years have seen an uptick in the usage of virtual reality (VR) in the gaming world, with famous and well-known franchises such as Grand Theft Auto, Minecraft, and Doom all accessible through headset technologies.

This has been a longer-term trend than its cousin, augmented reality (AR)—which still hasn’t found mainstream success since Pokemon Go six years ago—and it is becoming increasingly affordable thanks to the falling price of hardware, like the Meta Quest 2.

VR gaming is expected to grow in popularity this year. The hardware can now function independently or when connected to a gaming PC for a more immersive and graphically rich experience. More and more arcades are allowing gamers to enjoy the immersive experience of their favorite games.

eSports

Another trend is the ability to go live or live chat with other gamers through the console.

Esports has undergone a remarkable evolution in recent years, becoming a significant source of entertainment for millions of viewers. The industry has become integral to professional sports, from live audiences and tournaments to sponsorships and salaried players.

In 2022, eSports debuted as an official event at the 2022 Asian Games, further cementing its recognition as a legitimate form of entertainment. Arcades can use esports to attract more customers and increase revenue. Esports tournaments can be held in arcades, which can help draw in both experienced and novice gamers.

Arcades can use these tournaments to showcase the latest games and offer participants prizes and rewards. Arcades can also use streaming and broadcasting to reach a larger audience and promote tournaments.

They can offer a variety of activities, such as hosting game-related events, to create a more engaging and enjoyable atmosphere. By leveraging the power of esports, arcades can create a vibrant and exciting environment that will draw in both hardcore gamers and casual players.

The arcade industry faces several trends, including the increased demand for virtual and augmented reality gaming, the popularity of mobile gaming, and the emergence of new genres like eSports. This has shifted consumer preferences towards interactive, immersive, and engaging games in physical arcades.

Digital Signage in Arcades

Digital signage in arcades is becoming increasingly popular, as it allows arcades to better engage with their customers and provide an interactive experience.

Digital signage can range from simple displays with promotional messages to interactive touch screens with gaming functions. It's an ideal way to get people interested in the games and advertise special offers and promotions.

Arcades can use digital signage in various ways to enhance the gaming experience. For example, they can use digital signage to display game rules and instructions, advertise upcoming games and events, and provide information about the arcade.

Arcades can use digital signage to promote special offers and discounts, display upcoming tournaments and competitions, and showcase leaderboards and high scores.

Digital signage can also add a modern, interactive element to the arcade by displaying gameplay videos, running interactive quizzes, or providing live updates of tournaments and competitions. Many profitable arcades use digital signage to provide directions and help customers find their way around the arcade.

Digital signage also adds a personal touch to the arcade. Arcades can use it to create custom menus, personalize game recommendations, and even reward customers with virtual currency. Digital signage can also be used to provide customers with a real-time map of the arcade, as well as to display the latest games and updates.

Digital signage can be used to make the arcade more appealing and create a more immersive gaming experience. For instance, they can use digital signage to display game trailers and review videos and provide gamers with tips and tricks to improve their skills.

Overall, digital signage is a great way to make arcades more engaging and entertaining. It's an ideal way to attract more customers as well as keep them coming back.

Ways to Increase Arcade Revenue With Digital Signage

After you have launched your arcade, the next worry is increasing revenue. One significant and critical way is marketing. Statistics show that 38% of US gamers are aged between 18 and 34. This is the average age of young Gen Z and Millenials, who are called "screen people" because of their attraction to motion graphics and screen content.

Here is how to increase arcade revenue:

1. Use Digital Signage to Generate More Foot Traffic to Your Arcade

Marketing is much more difficult now that we live in a digital age. Digital signage can be a great way to generate more foot traffic for an arcade. By strategically placing digital signs around the area, arcade owners can reach potential customers who may not even be aware of the arcade's existence.

You need to place the digital signage where people are likely to congregate. This may be near popular restaurants, malls, and other entertainment venues. Placing the signage in these areas will make it more visible to passersby and draw their attention.

Arcade owners should consider interactive displays. These displays can showcase promotional videos, advertisements, and even simple game demos to get people excited about the arcade. The more interactive and exciting the displays, the more likely they are to attract visitors to the arcade.

Arcade owners should use digital signage to promote discounts and special offers. Special offers are a great way to attract customers and incentivize them to visit the arcade. Offering a limited-time discount or a free game to new customers is a great way to attract more people to the arcade.

Finally, arcade owners should ensure that their digital signage is optimized correctly for the area. For example, if the area has poor lighting, the digital signage should be equipped with a bright display or have a light sensor to adjust the display brightness automatically.

The digital signage should be placed in areas with good network connectivity to ensure that the content is always up-to-date. Using digital signage, arcade owners can effectively generate more foot traffic for their business.

Arcade owners can entice more customers to their business and potentially increase their profits by strategically placing signage, interactive displays, and enticing offers.

2. Increase Food and Drink Sales with a Digital Menu Board

New arcades are mostly hybrids—they come with bars. That means gamers can enjoy playing their favorite games while junking on their favorite snacks and energy drinks.

That is heaven for an average gamer. You can use digital signage as a digital menu board to increase sales and advertise these snacks to your audience.

Having delicious food and beverage options is an excellent way to increase revenue, as your business can make money by selling these products. Additionally, having delicious food and drinks can significantly increase customer dwell time.

Customer dwell time is the amount of time customers spend in your establishment. This can result in additional revenue, as customers who stay longer are more likely to purchase multiple games.

Digital signage can further enhance these benefits by utilizing digital menu boards. Digital menu boards can display high-quality images and videos of food and drinks, making them hard to miss and much more enticing to customers.

As a result, customers are more likely to choose your bowling alley over the competition, as they know they can have a meal while they play.

3. Promote Events with Attention-Grabbing Digital Visuals

As we mentioned, you can start hosting tournaments and other high-incentive events. Using digital signage to promote arcade events can be a great way to attract attention and draw in potential customers.

Digital signage allows for visually stunning displays tailored to the event, featuring images, videos, signage, and more. It can be used to highlight the event's special activities and offerings and give visitors an overview of the event agenda.

Arcades can also use digital signage to create more interactive experiences, from gaming and other interactive activities to interactive polls and surveys to virtual reality simulations. This can all be done in real time and updated as needed.

Arcades can use this to engage visitors and collect data on their preferences, allowing for better event planning and targeting. With digital signage, arcade events can have powerful, eye-catching visuals that grab attention and draw people in.

Animations, videos, and other interactive elements can be used to create a dynamic and visually engaging experience while also providing a platform for advertising and sharing information about the event.

With the right design, digital signage can effectively promote arcade events and engage visitors.

4. Monetize Your Displays

Arcades can use digital signage for more than just advertising the game house (unless they prefer it that way). They can use interactive signage to promote different companies. Why on earth would you do that? Because you can sell advertising space to generate more revenue for your company.

You can set your ad space's price based on when there is a lot of traffic. Ad space is less expensive when traffic is light; you can charge more for better visibility when it's busy.

By displaying advertisements for other companies on your digital displays, your bowling alley can create a new source of income. Of course, it can take a lot of time and effort to locate businesses willing to advertise in your company.

Thankfully, there is an easier way. Loop TV offers a free digital signage solution. Their solution gives you preloaded advertisements. All you need to do to earn money is display the advertisements on your digital signage.

You gain all the advantages of a high-quality digital signage solution and the simplicity of a simple method to create an additional revenue stream. As we have seen in this article, digital signage can be a powerful tool for driving revenue for arcades.

With digital signage, you can create brand awareness, generate more foot traffic, improve the customer experience, and increase customer engagement, all of which can contribute to increased revenue.