How are billboards priced? How much should I be paying for my outdoor ad?
Marketing is a mix of all forms of advertising strategies. There are a lot of options to select from but, whatever your plan is, you cannot ignore the importance of adding OOH (Out Of Home) media to the mix. Well, options are plenty – but budget is definite. Whether you have a huge budget or a minuscule one, let’s understand the advertising rates for outdoor ads and how they are established and what can drive price changes. Having all the information at hand, you will then be able to prepare a marketing strategy with a definite price in mind.
Why (OOH) out of home media is more cost effective
Before we begin to discuss rates, let us understand that OOH is typically more cost effective than other means of advertising. It is known to be 80% less than running a TV commercial. OOH advertising establishes a set price – up front. This helps marketing professionals create a firmer budget. The flexible payment ads such as Pay Per Click – can then be placed into proper spend limits.
What drives (OOH) Outdoor Advertising Rates?
Unlike other products and services, there isn’t a standard rate plan for outdoor media. There are a lot of dependencies and a lot of factors affect the price of a single billboard. Here are a few points to consider:
Visibility: the location of your billboard is one of the definite factors that influences the price. The easier it is to view your billboard, the more its cost will be. A billboard placed on a spot without any obstructions is typically higher in price than another billboard that is blocked by a tree.
Traffic density: With the study of detailed traffic information, it is possible to calculate the number of cars (vehicles) that pass a specific billboard at any given time of the day. Busy junctions, high traffic areas indicate that your billboard will be able to reach out to more people and hence the cost will be high. Additionally, the information could also impact the cost of a specific billboard for a specific time of the year. Seasons and festivals could impact the number of people out on the roads and hence the cost of the billboard.
Demographics: The prices for billboards are higher in busy downtown areas and throughout major cities than in less populated, rural areas.
Format: The type of outdoor advertising you are purchasing also affects the cost. Prices differ between a traditional, vinyl billboard and a digital billboard or transit posters.
These were just a few factors that slide the price of a billboard up and down. Each billboard also receives an out of home rating – that is expressed through the cost per mile or cost per thousand impressions. These ratings are influenced by the total volume of traffic that is passing the billboard, the population that passes it daily based on age, gender and income level and the number of people that actually see the add.
The OOH advertising market also thrives on the supply and demand model where the availability of ad space impacts cost. The campaign duration also matters.
So, you can put together an advertising budget if you can easily research all these factors that affect the pricing easily. Online platforms such has www.squiboo.in has consolidated information of billboards and hoardings across your city and placed all the information in one place. You can instantly book your choice of hoarding too.