Digital Asset Management: focus on economic factors

DAM: costs, savings potential, increased efficiency & competitive advantages

Let's be honest - why do you buy new software as a company? In the vast majority of cases, you want tangible economic benefits. And yes, Digital Asset Management (DAM) initially incurs costs: licenses, service fees, implementation and internal effort. On the other hand, however, there are considerable potential savings and efficiency gains. A DAM ensures that all media files can be managed faster and more securely - and this is not only more convenient, but also saves a lot of money (and nerves) in the long term.

To help you make an informed decision for or against a DAM, let's take a look at the most important economic aspects together. At the end of the day, you should know how the investment in a DAM pays off in the long term and what competitive advantages are possible as a result.

What does a DAM cost?

A basic distinction is made between on-premise and SaaS solutions:

1. On-premise
   Here, costs are incurred for the hardware, licenses and installation. In addition, there are often maintenance or service fees as well as additional expenses for customizations. If you opt for an on-premise solution, you either need your own IT department to take care of it or you use external service providers.
2. SaaS (Software as a Service)
   With this option, you pay a monthly or annual fee. In return, you don't have to worry about updates, server infrastructure or maintenance - the provider takes care of all that.

What factors influence the cost of a DAM?

• Costs per user and month
  It's worth taking a look here in particular: 50 euros per user per month may sound harmless at first. But extrapolated to five users, you're already looking at 3,000 euros per year. With our TESSA DAM, all users are free, which can already give you a cost advantage.
• Storage volume
  There is usually a certain basic volume (e.g. 1-2 TB). If you need more, there are additional fees per TB. 500 or 1,000 euros per year are not uncommon here, as this includes not only pure hard disk costs, but also data transfer, data backup and the entire operating costs.
• Range of functions
  Many DAM providers differentiate between basic and additional functions. For example, if you want to connect Photoshop directly to the DAM or require special interfaces to third-party systems, this can result in additional license costs. Some AI features are also free of charge, but can quickly add up if you need large quantities of automatic clipping or image optimization, for example.
• Implementation costs
  A DAM is not just a piece of software that you simply put on your laptop. You need to integrate it into your processes so that you can exploit its full potential. Consulting, data migration, customization and individual developments start at around 10,000 euros for smaller projects. For very complex requirements, this can quickly rise to over 200,000 euros.
• Training & Support
  You will also incur costs here, depending on the size of your team and the specific requirements.

Admittedly, a DAM is a larger investment than standard office software. However, it can also be adapted much more flexibly to your business processes - and this is precisely what will ensure considerable savings in the future. Incidentally, it doesn't matter whether you photograph your products yourself or purchase images from the manufacturer as a retailer. A well-established DAM pays off for both scenarios.

What savings potential is there with a DAM?

To give you a realistic estimate, we have put together a few examples here. Of course, the exact figures vary from case to case, but you should definitely keep the following points in mind:

1. Saving time
   Who wants to waste 20 minutes a day searching for the right image in the file chaos? If 50 employees work like this, you have an average of two full-time equivalents (FTEs) tied up in the search alone. With a DAM, you can massively reduce this effort.
2. Reduced costs for new production of assets
   There is hardly anything more annoying than having to repeat a shoot or buy a new image just because the original file cannot be found or is damaged. A DAM guarantees you always have access to your assets in the best quality. You can expect to save 1/5 - 1/4 of your previous expenditure.
3. Optimized storage costs
   You do have storage costs with DAM, but the automatic avoidance of duplicates will reduce them in the medium to long term. Savings of between 10 and 15 percent are realistic. And if you also avoid data waste, you are even doing something for the environment - a positive, albeit difficult to quantify, side effect.
4. Personnel savings
   Of course, filing in a DAM can be more time-consuming at first because you have to index and enter every asset properly. However, you will save a lot of time later on when it comes to finding, processing and distributing your files. All in all, you can expect a net effect of around 20 percent time savings.
5. License management
   If you work with models, advertising partners or use award seals, you will be familiar with the problem of usage rights that are limited in terms of time or content. A DAM can automatically warn you before licenses expire. This helps you avoid expensive breaches of contract. If you previously had to pay penalties, you can expect to save at least half.
6. Reduction in sales costs
   In short: If you can answer inquiries quickly, comprehensively and with high-quality media, you will save time and therefore money. You can expect 20 percent less effort in the sales department. There is also a positive effect on your turnover because you can provide high-quality material more quickly and thus increase your conversion rate.

What sales potential is there with a DAM?

There are not only strong arguments in favor of a DAM on the cost side - it can also give you a real boost in terms of sales:

Supply more retailers with better quality

Especially in e-commerce, the fast and reliable provision of high-quality assets is a decisive competitive advantage. Nobody likes to wait forever for images or videos. And if you as a provider deliver at lightning speed, you make yourself indispensable for your retailers. The exact amount of your sales increase will of course depend on your market and your negotiating position. However, there is a noticeable increase in almost every sector.

Customer satisfaction through more consistent presentation

If your brand message is presented in a consistent and high-quality manner, your customers' satisfaction will automatically increase. This is reflected in both better conversion rates and customer loyalty. In short: anyone who buys from you will be happy to do so again.

Quality improvement and job satisfaction

Don't forget the “soft” factors, which can often only be measured indirectly in euros and cents. A well-established DAM generally means less stress in your day-to-day work, faster results and greater satisfaction in your teams. Yes, admittedly: The introduction of such a system can initially trigger discussions, require training and establish new processes. But once the DAM has been introduced, your colleagues will wonder how they ever managed without it.