Digital and traditional advertising aren’t always the opposing forces many marketers make them out to be. Yes, there is a general sense of, “Out with the old, in with the new,” but sometimes, the two intertwine. This particularly happens in digital outdoor advertising. That might sound like a mouthful, but it’s an amazingly effective medium because it can be applied virtually anywhere with significant traffic (whether foot or vehicle). Let’s examine why digital billboards work and how much the cost would be to install one. It’s an investment, but it’s worth it.
“Out with the old, in with the new,” but sometimes, the two intertwine particularly in digital outdoor advertising. Photo by LEDtronics.
Why Digital Outdoor Advertising Needs Your Attention
It’s not necessarily getting someone’s attention that makes digital marketing so challenging and competitive, rather it’s holding their attention long enough for them to make a purchase or contact you. With the advent of LEDs, advertisers can incorporate brilliant colors and motion into digital outdoor displays. There are many stats and studies that show that outdoor digital signage performs notably better than other types of advertising (including online) in terms of engagement. Here are a few highlights from various sources:
- Of the 70 percent of people who recall seeing a digital ad in the past month, 47 percent specifically remember the ad
- Drivers spend significantly more time looking at digital billboards than they do traditional billboard advertising
- 55 percent of people who see an ad on digital signage are able to recall the specific message displayed
Noting the trends above, it’s no coincidence that digital signage is expected to grow nearly 9 percent annually between now and 2020.
Digital Out of Home (or DOOH) is becoming increasingly popular, but is advertising on digital billboards more cost effective? How does it compare to more traditional forms of outdoor advertising, and is it worth the investment?
For several years now experts have been hailing DOOH as the future of outdoor advertising. The industry has indeed seen much growth over the last decade and, with recent advancements in technology, DOOH is predicted to transform the face of outdoor advertising over the next few years.
Digital signage is expected to grow nearly 9 percent annually between now and 2020. Photo by Saketh Garuda on Unsplash.
How Much Does Digital Billboard Advertising Cost?
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 other 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 outdoor advertising, prices are negotiable. You should rely on an agency that has longstanding relationships with the major out-of-home advertising providers.
The average cost of a 2 by 8′ display size DOOH with a pixel pitch of 16mm is about $4400 per face plus parts and shipping. The average cost of a 4 by 8′ DOOH with a pixel pitch of 16mm is about $7800 per face plus parts and shipping. The average cost of a 40 by 90′ DOOH with a pixel pitch of 10.66mm is about $8600 per face plus parts and shipping. And, the most expensive being, a 14 by 48′ DOOH with a pixel pitch of 16mm is about $154,000 per face plus parts and shipping.
As you can tell, the rates are estimations and vary depending on billboard provider, location, size, and what not.
The cost to display your ad on a digital sign can vary greatly from one market to the next. Photo by Brandon Holmes on Unsplash.
Advertising on Digital Billboards Can Save You Money
In many ways, advertising on a digital billboard can be more cost effective. Production costs are cheaper because there is no printing required. That’s a good saving of $225-$300 per billboard (based on printing costs for a 48-sheet billboard).
Digital billboards also allow for greater flexibility when it comes to the length and timing of a campaign. Whilst traditional outdoor advertising tends to work in 2-week blocks, digital billboards do not. Production and placement schedules are far more flexible for digital out-of-home, which means a digital advert can begin and end on whichever day you want.
As such, you only pay for the weeks, days or hours that your campaign will actually be effective. For example, advertising a bar on a Friday afternoon as people leave work is likely to be more effective than advertising it on a Monday morning. Digital billboard advertising caters to your needs as an advertiser/business owner.
For more accurate pricing depending on your billboard needs, I would suggest trying out this calculator: