How Do Billboard Costs Compare To In-The-Hand Advertising?
The year 2019 might not have been the best for advertisers, but total ad spend will still grow by 2.5% compared to 2018. However, advertisers expect businesses to pay more in 2020. It is to say that media like billboards will get more business next year. As the market continues to shift towards digital platforms, issues like billboard costs will become significant determinants in the survival of traditional advertising media.
Billboard costs are high
Billboard costs vary across locations and other aspects. Notably, there are specific characteristics like circulation, demographics, and impressions that influence the cost of a display. For instance, billboards located in areas of high circulation attract high costs. It is because of the assumption that many people will view the ad compared to areas with less circulation. Additionally, if a billboard’s location is an area whose demographics are a wealthy population, the costs are higher. The assumption is that the business is likely to net some high net worth customers from the ad campaign.
On the other hand, the higher the impressions that the ad is likely to get, the higher the billboard cost. Typically, stronger impressions result from billboards that have excellent visibility. All these characteristics put together; they enable advertisers to compute the total cost of the billboard per the agreed period.
Billboard costs vs. In-Hand Advertising