Costs of Placemat Advertising vs. Traditional Media

Placemat advertising has become one of the most effective targeting methods used by brands. Compared to putting up billboards and advertising on subways, the low costs of placemat advertising have been a significant reason why brands prefer the advertisement method. So, what is placemat advertising, and how does it compare to the use of billboards?

Placemat advertising refers to the printing of ads on placemats. Advertisers often use the restaurants’ approach where the local businesses pay to have their adverts placed on the restaurant tables. Therefore, the cost of placemat advertising results in higher returns on investment. This is considering that the advertisers will reach a higher local audience, who in most cases will convert into buyers.

The placemat advert is often printed on a card size medium and contains relevant messages to attract the audience into taking the desired action. The message can include a small graphic showing the brand’s offering, business phone number, address, and possibly a few lines describing the products or the business.

Cost of Placemat Advertising Compared to Billboards

To determine the CPM (Cost Per Thousand Impressions) for placemat or tabletop advertising in restaurants, it’s essential to consider several assumptions and core metrics. CPM is a standard metric that reflects the cost to reach every 1,000 viewers, helping measure an ad’s cost-effectiveness.

Core Variables in CPM Calculation

Number of Diners (Impressions)

In a high-traffic restaurant, an estimated 300 to 500 diners might visit each day, though this varies based on factors like location, size, and popularity. We calculate impressions by multiplying this daily customer count by the duration of the ad campaign. For example, a 30-day campaign, with an average of 3 people per table and an ad exposure time of 15-30 minutes, typically yields around 8-12 total views per table per day. This can lead to approximately 70,000 to 180,000 impressions monthly per table.

Campaign Cost

Placemat advertising is relatively economical, generally costing between $250 and $2,000 monthly per restaurant. Rates depend on the restaurant’s size, location, and the level of ad customization. For illustration, we’ll use an average cost of $500 per month.

CPM Calculation

Based on these figures, the cost per 1,000 impressions ranges between $2 and $5.

Contextual Comparison with Other OOH Advertising (Source: Solomon Partners, Media Trend Report 2023)

Billboards: CPM typically ranges from $5 to $20, depending on factors like size and location.

Digital OOH (e.g., digital displays, transit ads): CPM often falls between $15 and $35.

Key Benefits vs. Traditional OOH Advertising

Extended Exposure: Unlike billboards or transit ads, diners may spend 15-30 minutes in front of the placemat ad, leading to prolonged visibility and engagement.

Higher Engagement: With fewer distractions, diners are more likely to engage with the ad, often more effectively than with other OOH formats.

Localized Targeting: Placemat ads focus on a local customer base, making them especially relevant to nearby businesses and increasing potential conversion rates.

Placemat Advertising Metrics

Targeting: Restaurants are selected by DMA or Zip Code.

Reach: Estimated 9,000 to 15,000 visits per month.

Average Exposure: 15-30 minutes per diner.

Monthly Impressions: Ranges from 70,000 to 180,000.

CPM (Cost Per Thousand Impressions): $2 to $8.

We dive deeper into the advantages of this innovative advertising approach, exploring its cost-effectiveness and how it stacks up against other media options, in our additional blog posts.