Billboards are part of the resurgence of out-of-home (OOH) advertising options available to anyone with something to share. OOH advertising may include advertising on benches, bus shelters, billboards, or other large displays in print or video. OOH advertising is not just for those placing ads. If you have a building with wall space in a prime location, you can bring in some extra income by renting out OOH advertising space.
This post focuses on billboards, what they are, the best locations, optimal sizes, and other factors that will help you decide if your building is a prime location for OOH advertising.
Billboards are an essential part of out-of-home advertising. Originally established as a larger form of poster advertisements, billboards have grown into a large constructed feature showcasing images and text to communicate messages to people driving or walking by. For example, Times Square is a well-known location full of OOH advertising using digital, standard, and static billboards.
For many years online marketing has received increasing attention; however. Still, OOH advertising is so effective that even big tech companies like Google and Samsung use billboards to promote their new products. Businesswire reports that 96% of marketing professionals achieved their ROI goals in 2022 using OOH marketing campaigns.
5 Factors that Affect the Cost of a Billboard
Location is critical for billboard success. Areas with high-traffic pedestrian or vehicular traffic reach a larger audience. Considering traffic density, there are many options for billboard placement. Near schools, office buildings, public transportation terminals, busy town center locations like malls, hotels, and restaurants, and the more traditional placement of billboards along busy highways. Billboard advertising costs are typically based on impressions or cost per mile. Pricing factors are dependent on traffic estimations and demographics.
Billboards come in various sizes ranging from large highway bulletins to smaller sidewalk billboards called junior posters.
The three most popular sizes of billboards are:
- Bulletins, famously located on the side of highways, are typically 14 feet high by 48 feet wide but may come in a few other sizes.
- Posters are typically 10 feet tall by 30 feet wide. They are often placed in urban areas with high pedestrian or vehicle traffic.
- Junior posters are comparatively small, typically measuring 6 feet high by 12 feet wide. Like poster-sized billboards, junior posters are often placed in urban areas with high pedestrian or vehicle traffic.
Importance of Visibility
Visibility is essential for billboard success. The view must be unobstructed for the target audience, pedestrians, people driving or riding by, or both. Factors affecting billboards’ visibility include size, location, angles, height, and lighting. Another vital aspect affecting billboard visibility is the color, contrast, font sizes, and style chosen for the advertisement.
Demographics and Billboards
Demographic profiles help marketing professionals understand advertising audiences using characteristics like age, ethnicity, income, education, and other factors. This demographic information can provide valuable insights into what a group of people buys, where they shop, forms of payment used, and other behavioral characteristics that can influence the success of an advertisement when placed in different areas. Due to how demographics affect advertisement success, companies want to know if they are placing an ad in an area that will reach their target market. Understanding the demographics of the area surrounding billboard placement provides that information.
Seasonality and Pricing
Peaks in sales reflect seasonality in sales. Seasonal peaks and valleys in sales, foot traffic in stores, or website traffic provide seasonal advertising opportunities. A common approach to seasonal advertising occurs annually leading up to and during the holiday season. For instance, days like Black Friday or Cyber Monday are perfect times for increased marketing.
Billboard advertising is also affected by seasonality, typically seeing peaks in OOH revenue from advertising sales during the second and fourth quarters of the year. Based on this information, examples of seasonal billboards may include local flower shops using billboards to promote flowers for Mother’s Day. Another example includes big companies like Samsung or Apple using billboards to promote new tech gadgets for the holiday season.
Billboard Owners: Things to Know
Billboards are an excellent way to create a semi-passive income. It is not 100% passive because keeping a billboard filled with paying advertisers takes some work. In addition, there are maintenance and upkeep tasks involved. Billboard displays require rotation as companies replace old ads or new companies place ads. In addition, they require repair or cleaning and other maintenance tasks as needed.
Zoning, Permitting & Insurance
Zoning and permitting regulations are involved with billboard placement. These regulations vary, and it is best to check with local authorities for information and compliance requirements. Another requirement for billboard owners is securing a general liability insurance policy.
Finding Advertisers for Your Billboard
Creating consistent income from your billboard space includes constantly expanding your network of potential advertisers. For example, if your billboard space is new and empty, contacting local businesses and organizations to spread the word about a unique advertising opportunity is a great place to start. Including key points about location and demographics may also help you find potential customers.
How much is a Billboard?
Costs associated with billboard ownership and advertising vary based on type, size, and location. In addition, demographics, seasonality and administrative costs affect pricing for advertising and billboard owners.
Are you interested in using your building for advertising to generate a new source of income? Contact Pearl today for more information. We help with every step, from finding advertisers to planning the best format for your building. We can work with you regardless of the type of space you have to offer. If your space has an unobstructed view and receives massive amounts of foot and automobile traffic daily, we have an advertising format that will work for you.
At Pearl Media, we specialize in street-level out-of-home advertising, placing ads in prime locations nationwide. Providing vivid, large format, eye-level billboards where people shop, live, and play. Our high-quality products include large-format outdoor media perfect for massive reach in areas full of pedestrians and traffic. We also offer eye-level billboards, streetscapes, and storefront advertising spaces.
You can enhance your property and increase revenue with our help, Contact us today for more information!