Billboards are designed to turn heads and encourage drivers or passers-by to want to find out more. Advertising statistics tell us they can be beneficial for businesses of all sizes, but whether they’ll be beneficial for your company depends mainly on the cost of billboard advertising.
The average billboard rental cost varies according to several key factors, including the location, billboard type, and the duration of the rental agreement. In this guide, we’ll explore billboard advertising, highlighting the pros and cons and discussing billboard prices in detail.
There are three main types of billboards to choose from when drawing up plans for a billboard advertising campaign. These are:
Some billboards are better suited to specific businesses and campaigns than others. When deciding which kind of billboard to use, it’s an excellent idea to think about these factors:
How much is a billboard? Statistics suggest that the average cost of traditional billboards ranges from $750 to $5,000 per month. Digital billboards are more expensive and usually cost in the region of $1,200 to $7,000 per month. Mobile billboards cost upward of $500 per truck per day.
The exact cost of renting a billboard will depend on several factors.
The location is one of the most significant driving factors for billboard advertising costs. Rural areas tend to be significantly cheaper than prime spots in big cities because of the lower levels of exposure. Costs also vary according to the state. The average cost of billboard ads is higher in densely populated areas.
Here are some examples of average prices in various states:
Prime slices of advertising real estate come with premium prices. On Sunset Boulevard in Los Angeles, for example, the billboard sign cost can reach $35,000 per month. In Times Square, home to the most famous billboards in the world, day rates can exceed $50,000.
Targeting specific demographics may increase advertising costs. If you’re looking to reach out to customers searching for luxury products, for example, you will need to target prime locations where rental costs are higher.
The cost of renting a billboard will vary according to how long you want to rent the billboard for. You may decide that you want to rent a billboard for a day, a week, a month, or several months. You’ll need to consider the day or monthly rate and the term of the agreement.
Digital billboard advertising cost tends to be higher than physical billboards and mobile advertising. However, this is not always the case. A digital board in a rural location, for example, will cost less than a traditional billboard in a sought-after city-center location.
The cost of designing and installing billboards will increase the cost of your advertising campaign. Always make sure you’re aware of the total cost before you proceed.
Billboard advertising costs are presented in cost per mille, a common measurement in advertising. “Mille” here stands for thousand impressions and relates to the impact of the billboard. Impressions, along with circulation and demographics, contribute to the billboard’s out-of-home rating, formulated by billboard rating bureau Geopath:
1. Circulation: The volume of traffic your billboard is exposed to. Data is collected by transport authorities. It ‘s important to note that this figure doesn’t take the number of drivers or passers-by that actually see the advert into account.
2. Demographics: The cost of a billboard reflects the target demographics. Examples of key demographics include age, gender, and average income. The higher the average income, the higher your advertising costs are likely to be.
3. Impressions: Impressions indicate the likelihood of prospective customers to see the advert. This figure is calculated based on the location of the billboard, the size, and the average speed at which people pass the board.
Due to its specific advantages and disadvantages, billboard advertising is not ideal for every business. After going through this list of pros and cons, you may well come to the conclusion that other forms of marketing, for example, SMS campaigns, are better suited to your business.
Billboard advertising is most beneficial for:
To maximize the chances of success, here are some useful billboard renting tips:
The cost of renting a billboard varies according to the type of billboard, the location, and the out-of-home rating. The average cost ranges from $500 to over $10,000 per month. Weekly costs are likely to range from $100 to more than $5,000 in prime locations.
Billboard advertising can be highly beneficial for some companies, but it’s not always the most impactful type of advertising. Typically, renting a billboard is best for local businesses, companies trying to raise brand awareness, and organizations advertising products or services to a mass market.
Times Square is one of the most iconic locations in terms of billboard advertising. The cost of renting a billboard in Times Square, New York, can reach $50,000 per day.
Owning a billboard can be profitable, but the level of success is dependent on how popular the location is and the rental rate. To generate an income, you have to ensure that companies want to rent your billboard and that your rental income is higher than fees and running costs.
Your email address will not be published.