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Billboards are on the rise, yet they often come with a hefty price tag. How much does it cost to put up a billboard? What factors go into deciding its price point? This article will answer all your questions and help you make an informed decision when buying billboards in the future.
Billboard advertising costs are determined by the format, circulation, demographics, and impressions. In rural locations, physical billboards cost $750 to $1,500 per month, $1,500 to $2,000 in small to medium towns, and $14,000 and more in major markets. Depending on the region, digital billboards might cost upwards of $15,000 per month.
What Is the Cost Billboard Advertising?
The cost of billboard advertising is influenced by the geographic market, out-of-home (OOH) rating, and whether the billboard is physical vinyl or digital. Physical billboards are less costly than digital billboards, costing anything from $750 to $14,000 per month, depending on the region. Digital billboards may range in price from $1,200 to $15,000 per month.
Costs of Additional Billboard Advertising
The cost of renting a billboard isn’t the only expense associated with billboard advertising. You’ll almost certainly need to engage an expert to design your billboard, which may cost anywhere from $150 to $500 per hour. Then you’ll have to pay for the billboard’s materials, as well as maybe an extra price for the installation.
- Design costs: Depending on whether you hire a freelancer or a billboard design service, the cost of creating a billboard may vary from $150 to $500 per hour.
- Vinyl is the most common medium for physical billboard advertisements, and it costs between $1 and $1.50 per square foot.
- Cost of installation: This may be included in your monthly rental payment, but double-check with your supplier.
Billboard Ads’ Advantages and Disadvantages
Billboards may be costly, difficult to see, and inflexible, yet they can still be advantageous due to their potential high exposure and straightforward, focused message. Before committing to a billboard, acquaint yourself with the benefits and drawbacks of billboard advertising.
Factors Affecting the Cost of Billboard Advertising
The cost of a billboard ad is measured in cost per mille (CPM), or cost per thousand impressions, and is influenced by circulation, demographics, and impressions. The billboard’s out-of-home (OOH) rating is calculated by a combination of several criteria, as assessed by Geopath, an audience location measuring tool.
The OOH rating of a billboard is determined by three factors:
- Circulation: According to transportation authorities, circulation is the total amount of traffic passing by the billboard. The circulation does not account for whether or not passers-by view your advertisement.
- Demographics: A billboard’s demographics are a breakdown of the individuals who normally pass by the billboard by age, gender, and economic level. If you want to promote to consumers with higher income levels, expect to spend more.
- Impressions: Based on the size of the billboard, visibility, the pace at which people pass, and other considerations, impressions are the number of people who are likely to view the ad. This is determined by the billboard’s circulation and position.
Street Billboards Vs Online Billboards
Digital billboard advertising has a number of benefits over physical billboard advertising. Because the infrastructure has been in place for decades, physical billboard advertising is readily accessible. Furthermore, unlike digital billboards, printed ads are not affected by faults or power outages.
Who Should Use Billboard Advertising?
Businesses that want to raise brand recognition or advertise particular retail locations should use billboard advertising. Because the audience is already close, billboards situated on highways that promote local companies are particularly actionable. Furthermore, if you don’t want fast conversions, billboards are an excellent tool to market your company.
Consider the following questions if you’re still undecided about whether billboard advertising is good for your company:
- Is your product able to withstand the eight-second rule? Billboards are not for you if you can’t make your point in eight seconds. Traditional billboards’ static nature is also unhelpful if your message demands interpretation.
- Is your product appealing to a large number of people? You’ll squander a lot of money on “unnecessary” billboard impressions if your product is only relevant to 10% of the audience. A vegan food distributor, for example, is likely to appeal mainly to the 7% of Americans who identify as vegan.
Let’s take a closer look at who billboards are most effective for:
Increasing the visibility of a local business
The biggest advantage of billboard advertising is that it allows you to reach a high number of people in a small area. This is ideal for people who are just establishing a company or for local firms in general whose target audience is large yet concentrated in a single geographic region. Restaurant advertisements, for example, are successful because everyone eats. A local firm that provides in-home chefs for high-end clientele, on the other hand, would not be a good fit for billboards due to its niche target.
- Restaurants and retail establishments
- Real estate agents
- Firms of lawyers
- Financial institutions in the area
- Medical services
- Centers for fitness
- Providers of on-site education
- Service providers (e.g., heating and oil, landscaping, construction)
- Public service announcements and nonprofits
Keep in mind that billboard advertising should not only be appropriate for your target demographic, but also for your marketing objectives. Billboards are often used to raise broad awareness of a local company, service, or group, rather than to convert consumers on the spot. For certain kinds of companies, this may result in a speedy sale, but the goal of billboards is not to create leads or convert leads into purchases as soon as possible.
Reminder
Coca-Cola, for example, does not need to market. It’s not as if no one knows it exists, but huge, national corporations like it spend millions of dollars on advertising each year, including billboard billboards. Unlike small businesses, which often use billboards to raise awareness (e.g., to let you know about a new restaurant in town or a new apartment complex that will be opening soon), major firms typically utilize billboards to remain top of mind, which helps them produce more sales.
How to Hire a Billboard for a Specific Event
If you’ve already decided on a billboard site, make a mental note of the advertising business the next time you pass by. On the building itself, the corporate name is generally placed underneath the picture. Lamar, Clear Channel, and CBS Outdoor are among the major billboard firms in the United States, although there are numerous smaller and regional suppliers as well.
Where Should You Put Your Billboard?
When it comes to outdoor advertising, the position of the billboard is the most crucial factor to consider. Traffic speed, sign closeness to the road, and passenger destination are all factors that impact the efficacy of a billboard. If you determine that a billboard is ideal for your company, consider a few different sites before settling on the one that will reach the most people.
A billboard’s attractiveness is influenced by a number of variables, including:
- People are more likely to notice your ad if they’re on a busy highway than if they’re traveling at 40 mph on a rail line. As a result, you should select a billboard that is situated on a route with a low-speed restriction or one that is prone to traffic congestion.
- The distance between the billboard and the road has an impact on how visible it is to passing motorists. As a result, choose a place near enough to the road to be seen.
- Consider if you’re targeting locals or those traveling through town while promoting your company. Consider if customers are likely to stop by on their route to or from work.
This information is usually accessible from the firm that sells billboard space. However, before committing to billboard advertising, it’s a good idea to pay a visit to the spot. Make sure you know where your customers are coming from and place the billboard where they’ll see it the most.
Consider purchasing a billboard immediately across the street from your competition. The McDonald’s billboard below, for example, mocks Starbucks’ exorbitant costs.
Most Commonly Asked Questions
What is the best way to put up a billboard on your property?
To put up a billboard on your land, check local rules to see whether it’s allowed under the zoning restrictions. To find out how your property is designated, contact your local city or county office. You may build the billboard yourself if it complies with the zoning regulations. A regular billboard will cost between $2,000 and $10,000, while a digital billboard will cost between $20,000 and $30,000.
How do you lease property to a billboard advertising company?
Advertising firms such as Lamar and Lang Media constantly seek out new places for billboard advertising space and sign long-term agreements with landowners. If you hire an advertising agency, they will usually manage everything for you, including construction, client acquisition, and ad replacement. Expect to receive 40 percent to 60 percent of the sign’s net income on average.
Conclusion
Billboards are an excellent approach to entice viewers to act or just present your company to a large audience. The price of a billboard ad is determined by its format, circulation, demographics, and impressions. Digital billboards may cost $10,000 per month or more depending on the location, whereas vinyl billboards can cost $750 per month or more in rural locations and $14,000 per month or more in big markets.
