As digital out-of-home becomes increasingly commonplace, what effect will it have on marketing budgets? Is it more expensive or cheaper to advertise on a digital billboard?
Well, the reason why DOOH is set to expand so rapidly in the coming years is partly because the cost to produce LED screens today is significantly lower than in previous years. It can cost anything from $5,300-$180,000 to install a digital screen, depending on its size. And so OOH media owners are rolling-out more digital screens across a lot cities.
DOOH installation costs may not be directly relevant to advertisers seeking to rent a digital billboard. However, as these digital billboards become more commonplace, rental costs become more affordable.
The cost to display your ad on a digital sign can vary greatly from one market to the next, and from one sign to the next based on exposure and campaign length. Some digital billboard campaigns are ranging from $1,000-$5,500 per four-week period. The ads circulate every 8 seconds. Standing digital billboards, on the other hand, can cost between $850-$7,000 per four-week period, depending on location. Like all outside advertising, prices are negotiable. You should rely on an agency that has longstanding relationships with the major out-of-home advertising providers.
The cost of a digital billboard ad can range between $1,200 – $7,000 a week. As of 2009, Sign Industry magazine estimates that a typical 14-foot by 48-foot LED display costs $290,000 for advertising agencies to acquire. Higher advertising rates reflect both the higher initial investment for the agency and the demand for the technology. Businesses can expect to pay an average of $1,200 to $10,000 per month for a digital advertisement. They may have to pay an additional design fee. However, many advertisers have saved money by creating their own digital ads using computer design software.
The exact amount varies from digital billboard to digital billboard and is based on several factors, the most common of which being:
- Location – How many people will see the digital billboard everyday
- Demand – The more advertisers who want a digital billboard, the higher the cost
- Time of year – June/July/August rates are usually lower than November/December
- Campaign Duration – Longer term commitments can result in discounted pricing
There are many pricing factors you should consider from suppliers that will determine your overall cost of renting a billboard.
We have carried out full pricing research from the main suppliers in the UK.
On a standard two-week booking, you can expect to pay between £475 and £695 for a standard 48-sheet billboard, and £875 to £1323 for a 96-sheet billboard which are larger, 3m x 12m boards.
That said, the pricing can become considerably cheaper based on numerous factors, highlighted below.
The location of your billboard
For some UK suppliers, you will be charged more for billboard placements in busy cities and prime locations which will result in higher volumes of traffic impressions. It’s important to check with the supplier how the location affects the pricing model.
Billboard rental period
As already mentioned above, for a standard 48-sheet which is the most popular billboard size, this can cost between £475 and £695 for a standard two-week booking. However, when you commit to a longer-term campaign, you can pay as little as £100.00+VAT per week (plus the production/installation fee) from suppliers such as Airoutdoor.
Frequency of bookings
If you’re a regular customer and you regularly book with your supplier, you can often negotiate cheaper pricing agreements.
Artwork, production and installation
Almost all suppliers charge a separate cost for production and installation of your artwork. This can range between £128 and £195 for a standard 48-sheet and £193 and £323 for a 96-sheet (depending on the choice of supplier). It’s also important to take into consideration the separate fee for design artwork, unless you have your own graphic designer.
Choice of supplier
The choice of supplier can make a huge different on your overall pricing. It’s important to shop around and get the best deal possible. Don’t always look for the ‘cheapest’ as it’s more important to get the best VALUE. Take into consideration the location of your billboard and how that will have an affect on your campaign goals.