How Much Does A Billboard Cost?

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Key Takeaways:

• There are three primary types of billboards: classic, digital, and mobile, such as the ones on buses.

• The cost of a billboard is primarily determined by impressions, demographics, and circulation. Or in other words, how many people are likely to see it, what type of people are likely to see it, and how many people could possibly see it.

• Additional cost factors include the size of the billboard, how in demand the space is, installation costs, design costs, and how long you’re able to rent the space for.

What Is a Billboard?

Most people are familiar with billboards on the highway. They’re huge advertisements that are put up beside the road, advertising anything from perfume, to jewelry, to cars, to fast food. As most people only get a quick glimpse of billboards, they should be largely focused on image, with a bit of text. It should also be memorable so that it stands out to passersby.

More or less, a billboard is just a large space that the owner rents out to someone who wants to put information up on it – usually advertisements. In essence, it allows a giant poster to be put up.

There are three primary types of billboards:

• Classic. This is the type of billboard everything thinks of when you say billboard. They’re large stands by the highway – or in a city – that allow businesses to put up an advertisement. They are occasionally used for public service announcements as well. They’re static and often made of vinyl so as to be durable in different types of weather.

• Mobile. If you’ve ever seen an advertisement on the side of a bus, you’ve seen a mobile billboard. There can also be ones on trucks, cabs, or other vehicles. This type of billboard has the advantage of not being static, so it’s more likely to be seen by a larger number of people.

  Picking a route that’s likely to go through an area with your target audience is likely to get more eyes on your billboard. Drivers are going to be more likely to see it than those who don’t drive, as you’re more likely to notice it in the car. And once someone gets on a bus, they can’t see the exterior ad anymore.

• Digital. If you’re looking for something more dynamic, then a digital billboard may be a good choice. As they’re programmable, it allows the advertisements to shift depending on the time of day, allowing you to advertise different things in the morning than evening. And for businesses like a restaurant, that can come in quite handy.

  Digital billboards have the drawback of generally being more expensive than their lower-tech counterparts. There’s also the risk of a glitch or being shut down by a power outage. Drivers also tend to find digital billboards more distracting, as motion draws more attention.

Should Your Business Advertise on a Billboard?

Billboards have been around as a way to advertise for a very long time. They’re in specific locations – or routes, for mobile billboards – which make them better suited to brick-and-mortar stores. They’re unlikely to generate instant purchases – most viewers will be driving at the time, after all – but it is a way to get brand recognition and draw attention to a store location.

How Much Do Billboards Cost?

Unfortunately, billboard cost isn’t static or broken down by a square inch. The cost of a billboard will be determined by several different factors that will be calculated by the billboard’s owner. Many companies that sell billboard space determine the cost by impressions, or cost per mile (CPM), which is based on per thousand viewers.

A billboard’s cost is based on a billboard’s out-of-home (OOH) rating. Here are the factors that determine that:

• Circulation. As with magazines or newspapers, circulation is a huge factor in determining the value of advertising space. This statistic is typically determined by information based on traffic authorities, which study the amount of traffic in a given area. This doesn’t mean each of these people will look at your ad, only that they’ll go by it.

• Demographics. For all types of advertising, demographics are extremely important. Both you and the billboard owner will need to take into account the age, gender, and socioeconomic status of the people who are likely to see the billboard. Generally speaking, billboards in higher-income areas are going to cost more.

• Impressions. This takes the billboards’ size, location, and size into account to calculate how many people are likely to see the ad. Other factors are included, such as the speed limit – a higher speed limit means it won’t be seen for as long – and terrain. Flat open areas make billboards easier to see than mountainous or wooded areas.

The cost of a billboard will take all of these factors into consideration. A classic billboard may only run you $250 per month but can end up costing as much as $14,000 in high-traffic areas such as cities.

Digital billboards are usually more expensive, as they’re rarer. Advertising on one is likely to cost between $1,200 and $15,000 per month. However, the cost can be lowered if you choose to advertise alongside others via rotating ads. That means that you’ll get lower exposure, hence it being less expensive.

Mobile billboards are usually cheaper, as they tend to be smaller. However, there’s a large range because they can also include digital or moving billboards. The cost for these ranges between $800 and $3,600 per month.

There are a few other factors to consider in terms of cost:

• Installation. As a rule, you’ll be responsible for all costs associated with installing your advertisement. Depending on where the billboard is and its size, that may be a substantial investment. The size of the image you put up may end up costing your business a lot of money.

• Cost of design. You’ll also have to consider the labor and material costs that go into designing the advertisement itself. If your marketing department works on the design for a month leading up to installation, that ends up being a substantial labor cost.

• Duration. Different billboards will have different durations for how long your ad can be displayed. Many do it per month, but billboards that are in higher demand will shorten it to two weeks. Ones in rural areas may even give you longer durations to make sure that the space is used.

• Popularity. How much billboard space is in demand will have a big effect on price. If everyone wants to put their advertisement there – like a billboard in Times Square – then it’s going to be very expensive. And will likely have a short duration, which makes it more expensive per day.

  On the other hand, if a billboard doesn’t have a current renter, then the company that owns the billboard may be willing to offer it to you at a fraction of the cost just to make sure that the space doesn’t go to waste.

• Size. A billboard’s size is going to have an impact on its price. Smaller billboards will generally cost less, as it’ll lower the impressions. In addition, size will affect your material and installation costs, with bigger billboards needing more material and more labor.

Billboard FAQ

1. How is the cost of a billboard determined?

   A billboard’s cost is determined by three primary factors:

   • Demographics. Or, who is likely to see your billboard.

   • Impressions. How many people in an area are actually going to see your billboard – and for how long. This takes into account conditions such as speed limit, terrain, and billboard size.

   • Circulation. How many people can possibly see your billboard is usually determined via traffic data.

2. Are billboards worth the expense?

   Yes, billboards are worth the expense for some businesses. Billboards are widely used and rarely empty, so many advertisers certainly find them worth the money. That being said, a billboard may not end up being worthwhile for your business.

   Some of this will depend on the location of the billboard itself, the nature of the advertisement you put on it, and what percentage of people will actually be interested in your product.

   Billboards are often useful for restaurants, as they draw attention to them. They’re also helpful for rest stops, as they’ll show what’s available there and may entice highway drivers to stop there instead of somewhere else.

Author

Di Doherty

Di has been a writer for more than half her life. Most of her writing so far has been fiction, and she’s gotten short stories published in online magazines Kzine and Silver Blade, as well as a flash fiction piece in the Bookends review. Di graduated from Mary Baldwin College (now University) with a degree in Psychology and Sociology.