Business First Family Business, Accounting, Finance, Investing, Marketing And Management
While driving on a highway or city street, you might notice a billboard on the side of the road. These outdoor advertising signs are great ways to market a business even if you have just registered a business name. However, they do not work for every business. In order to have a return on investment, the billboard advertisement must bring in enough business to pay for the placement and any costs involved with providing the service or product. If you are a business owner, the billboard advertising cost could be justified. However, you will have to consider the following factors before making that decision.
Billboard Costs By Population
Naturally, a billboard advertisement cost depends on the population of the area. If you decide to buy a billboard advertisement, the adult population can range anywhere from 30,000 in a small city to 8,500,000 in a large metro area. Understandably, a more densely populated area will demand higher costs upwards of $15,000. Meanwhile, a smaller town can sell a billboard ad for just $1,000. Still, the range of advertising costs will also depend on many other factors in addition to the population around the billboard. Remember, what is marketing, it is not just about the numbers, but the engagement.
Billboard Advertisement Size
Next, you have to consider the size of the billboard that you want to advertise on. Small and medium billboards can offer great value because they can cost below $2,000 where a large billboard in the same area could fetch as much as $30,000. This range shows how much billboard size can make a difference on advertising pricing. If you can get a smaller billboard that still gets noticed, it could provide a very good return on your marketing campaign.
Billboard Lighting Adds Premium
Of course, digital billboard advertisements have a great lighting because they are on a large display. These back-light billboards along with traditionally light billboards can demand 25% more in pricing. Some companies that run during the evening could benefit from having a lighted billboard. If you run a restaurant or bar, the billboard could attract people that very evening to come in for a drink or meal. On the other hand, some businesses could save some money by purchasing billboards that are mostly visible during the day. Depending on the type of business you would like to advertise, it could be worthwhile to pay the added advertisement costs for billboards that are well lit.
Billboard Advertisement Demand
In some areas, the demand for billboard advertisements can drive up costs significantly. While the market demographics and population might be similar, the demand from advertisers can create major differences in pricing. For example, the demand in New York has a much higher billboard advertisement cost. This is due to the fact that New York is featured in many TV shows, movies and videos. The marketing campaigns can further justify the extra costs because they receive even more exposure despite the competition for the outdoor advertising space.
Billboard Campaign Length
Additionally, your business can keep the billboard ad cost in check by agreeing to longer terms. If you buy billboard advertisements for 4 weeks, it will be more expensive than an entire year. Typically, billboard ad companies can offer discounts for 13 4-week agreements. When you buy for the year, the costs can come down significantly to meet your startup requirements. Plus, you won’t have to pay a premium for the peak seasons and months. Just like anything other type of negotiation, a larger term will give you the opportunity to get a discount.
In order to make a profit on advertising with billboards, you must have a clear idea of your marketing goals. Then, you should choose a billboard cost based on the population, size, lighting and demand. Additionally, try to negotiate further by offering a longer term or buying advertisements in more locations. By keeping the billboard advertisement cost lower, you will have an easier time justifying your marketing budget and running a profitable campaign.
