OOH media stands for out-of-home media and has been one of the best ways to spread brand awareness for a long time. This method of marketing is one of the oldest methods and has stood the test of time for the simple reason that it is very effective. The billboard is the most well-known piece of OOH media and is a great example of what OOH media is.
Any kind of outdoor advertisement that is set up in areas of high traffic, or circulation, could be considered OOH media. The sheer variety of options is one of the characteristics of OOH media that has made it so popular through the years. For businesses, choosing to use OOH media in their marketing campaigns presents a wide array of options. This not only allows you to pick the best options that would reach your target audience but it also allows for flexibility in pricing.
When it comes to figuring out billboard prices and the cost of other forms of OOH media, you have to take in a few key factors that always impact this price range. If you have been curious about the price of billboards here is everything you need to know.
How Are Billboards Priced?
In general, OOH media is priced off on three factors. The first is the overall duration of the campaign, this is very important because it can change from company to company. The second is the estimated impressions that a certain location has to offer. The third factor is the CPM, which is based off the estimated on the estimated amount of impressions.
Let’s take a closer look at all three of these.
An important aspect of a marketing campaign is defining exactly how long it will run. Marketing departments are no stranger to figuring out how much time a product needs either to be announced or to be publicly advertised. This can be different for different services. For instance, a company that sells car insurance may reserve a billboard on a popular highway for months at a time. This is very different from an entertainment platform advertising a movie, tv-show, or even live play that usually runs for a short time before and after the release.
Impressions are the estimated amount of interactions that a billboard or piece of OOH media will have. This is estimated mostly by the circulation, which is a term that refers to the number of people that will pass by the advertisement. This is something that can fluctuate greatly. For example, a billboard outside of a rural town in Kansas will have a drastically lower estimated amount of impressions than one that is situated on a busy highway going into Denver Colorado.
Lastly, CPM stands for cost-per-thousand-one-thousand-views (mile). This is going to be the actual cost per thousand views and is based on the median impressions. So, in essence, if the location has a higher circulation, it will naturally have a higher estimated impression. The impressions are the total number of interactions during the set campaign length. Taking this, you can then find the CPM which will help to quantify the final cost of the total campaign length.
Other Factors To Consider
As you can see, the most important factors when it comes to finding billboards you can afford is going to be located. The more premium the location, the higher the circulation and the higher the CPM will be. While this is the most important factor that affects billboard pricing, there are other factors that can influence it as well.
Type of Billboard
One factor that can affect the price of a billboard is the type of billboard. There are two general forms of OOH media, traditionally printed media, and digital media. DOOH, which stands for digital-out-of-home media is an exciting way to amplify your message and get even more attention. Using high-end digital panels that are clearly visible both during the night and day, these billboards can have a huge impact on your desired audience.
The only drawback is that these billboards can tend to run a higher CPM based on being a more premium format. Digital billboards pose a unique advantage over traditional billboards, and if your budget allows should be something you invest in.
Another factor that can impact your price point is the companies you use to advertise. There are options on the market that allow for different budgets. While there are the popular, and premium OOH companies, there are also other options to explore that may have a more affordable service fee.
Using OOH media in your next marketing campaign can be cost-effective. With flexible options like placement, style of advertising, and choice of OOH company, you can find an option that’s right for you.