How a Shopping Mall Can Save 50% on Digital Advertising Energy Consumption (and Forget About the Problem for 5 Years)

Zoltán Havasi

Founder of MOHAnet, IoT Expert

Post Date: 2021. 05. 10

 

How a Shopping Mall Can Save 50% on Digital Advertising Energy Consumption

(and Forget About the Problem for 5 Years)

 

If we leave our home in the morning, we turn off the TV and the coffee maker; if we leave the office in the evening, we turn off the computers and the lights. This routine is dictated by logic because leaving all electrical devices on continuously would significantly increase the electricity bill, reduce the lifespan of the devices, and pose a risk of unmonitored operation.

 

However, when we enter a shopping mall after closing hours, the picture is different from what we would expect based on this logic. The lights are off, the shops are closed, but we encounter dozens of digital advertising billboards, displays, and information terminals that continue to glow brightly in the empty space.

 

Why don't we simply turn off the ads at night and save on operating costs?

 

We cannot simply power off the entire building, and we cannot connect the devices operating from the outlets inside to separate networks. Therefore, manual solutions would remain: we would have to individually turn off and on each device every evening and morning.

 

Below, we provide a detailed description of the problem along with some calculations to illustrate how the Instant GSM socket solves this problem and makes life easier for operators. But if you're only interested in the conclusions, here's a quick summary: Operating a single display or information terminal unnecessarily (outside of business hours) could mean spending up to 700,000 Hungarian forints over 5 years. With dozens or hundreds of such devices, we're talking about tens of millions. If employees are tasked with turning the devices on and off in the morning and evening, thousands of work hours are wasted over the same period for 1-2-minute, automatable tasks. However, using GSM sockets can save even a small shopping plaza over 30 million forints on the electricity bill over 5 years. The thousands of work hours can also be saved since GSM sockets can be controlled from a single location and are automated. Overall, a single display can recoup its cost in just 2 months while operating problem-free with a stable internet connection for 5 years. Now, let's delve into the details...

 

Let's consider a specific example and do some calculations.

 

To have a specific example, we sat down to talk with the manager of a suburban shopping mall in Pest. They currently have approximately 40 standing LED displays in place, operating 24/7. Let's say we assign someone the task of shutting down these displays every evening and powering them up every morning. Let's assume it takes an average of 2 minutes per device for them to walk up, safely turn each one on or off, and ensure proper operation.

 

Now we have an employee who spends over 2.5 hours daily doing nothing but switching digital advertising displays. Whose time are we taking up with this task? Would we hire someone just to switch ads every day?

 

What if we're not talking about 40 displays but rather hundreds of advertisements and terminals in a larger shopping mall?

 

The conclusion is that it's easier to leave the devices powered on because a manual solution would be tedious and costly.

 

How much does this cost exactly?

 

A képen irodaszerek, Irodai berendezések, toll, Irodai eszköz látható

Automatikusan generált leírás

 

Let's do some calculations.

 

LED displays generally require 1000-1200 watts of power in continuous operation. At the current rate of 36 Hungarian forints per kilowatt-hour, let's estimate that it costs this much per hour to operate a single display. Most plazas are open from 10 am to 9 pm. If we keep the above-mentioned 40 displays continuously running outside of business hours, it would cost approximately 34,560 Hungarian forints per day. However, if we program the displays to turn on and off automatically via GSM sockets at 9 am and 9 pm, we could save half of this cost, which is 17,280 Hungarian forints per day - half of the previous cost.

 

A single GSM socket costs 24,990 Hungarian forints. For a single display, the saved power consumption amounts to 12,960 forints per month. Thus, a GSM socket recoups its cost in just 2 months.

 

The GSM socket, however, is designed for long-term use, specifically to not require intervention for at least 5 years. Taking into account only these 5 maintenance-free years, a single display operation would be 736,410 Hungarian forints cheaper over 5 years (including the cost of the socket). Projecting this onto 40 displays, it's 30,536,400 Hungarian forints saved, which could be allocated to salaries, development, or purchasing new equipment by the operator.

 

Time is money

 

Let's take a moment to revisit the hours of operation because this is where the lifespan of electronic devices comes into play.

 

Let's say we only operate an LED advertisement when it makes sense, i.e., when visitors see it, walk past it, during business hours. This amounts to approximately 4000 hours of operation per year. While many manufacturers guarantee a lifespan of over 100,000 hours for such devices (at least for LED displays), in the real world, due to amortization, it's not really worth considering a lifespan of more than 10 years for such a device.

 

However, if we operate the devices for only 12 hours a day instead of 24, the lifespan in absolute time doubles, meaning we can save on the purchase of new devices as well. A doubled lifespan would equate to the full purchase price.

 

Hundreds of advertisements, just one press of a button

 

If we've reached the point where we've installed GSM sockets for every digital advertisement, information terminal, and similar device (for this, all you need is the socket included in the package and a smartphone with the application, pairing is automatic, practically happening in moments via Bluetooth), there's still an issue.

 

Switching each device on and off individually remotely is time-consuming and problematic.

 

However, this can be easily avoided in several ways:

 

  • The switching on and off time can be automated for each socket, so if we align its operation with the hours of operation, we practically only need to program it once, and afterwards, hundreds of GSM sockets can be controlled simultaneously.
  • If the hours of operation change or a holiday is approaching, adjusting the automation is just a few taps in the application.

 

The conclusion:

 

  • If there's an employee whose task is switching, we save hundreds or even thousands of work hours over 5 years by fully replacing the numerous 1-2 minute tasks.
  • If there isn't, and the devices are operating 24/7, we still save tens of millions of forints on the electricity bill and the extended lifespan of the devices over 5 years.

 

Why do we mention 5 years?

 

The GSM socket as a device has a much longer lifespan. However, the package also includes internet access and a SIM card, which saves time and energy since otherwise, we would need to arrange a separate connection for each socket, as is usually the case with similar smart devices.

 

This internet access is provided for 5 years - it doesn't need to be touched, doesn't expire, and doesn't run out.

 

The essence of automation is not remote control, but minimizing the need for control. With the GSM socket, we've put together the package so that you can forget about control-related thoughts, except for one or two special situations per year (see above, e.g., holidays, changes in hours of operation, or even curfews).

 

The result is clear: a GSM socket recoups its cost after 2 months while providing automated, cost-effective operation for display advertisements, information terminals, and any other electrical devices for 5 years.

 

Even a small shopping center saves millions, which can be used for development, purchasing other equipment, or hiring staff.

 

With the GSM socket, you not only get the device itself but also a stable internet connection and a SIM card for 5 years, so beyond ordering and the one-time installation per unit, there's nothing more to do.

 

For larger orders, we can also provide custom offers for the devices.

 

If you manage a shopping mall, office building, or any other facility where controlling or, even better, automating hundreds of devices could be useful, please contact us!

 

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