In the ROI advertising drive, truckside ads make rates rise due to its captivating effect on people.
Truckside advertising is considered to be a successful marketing strategy that makes people look at ads more and brings positive attention to businesses. Before discussing how high ROI can raise through the help of truckside ads, it is important to understand how ROI functions and the significance of knowing this rate.
What is ROI?
ROI is the abbreviation for “Return on Investment”. ROI works as a performance measure that calculates the profit (or return) of an investment and is divided by the cost that was used to invest in that investment. By calculating the ROI, the effectiveness of an investment can be measured. It is normally interpreted as a percentage or ratio.
What is the Importance of knowing Your ROI Rate?
Businesses calculate this rate because it factors in their decisions about the company. Knowing your ROI rate can help determine the following things:
- If your initial business investment was worth investing in
- Whether you should switch marketing strategies to maximize your gains
- To see a clear pattern of how well your investment is going
- If you are gaining money or losing some
- Whether or not you should continue your business
How to Calculate It?
ROI is represented in a formula and it can be measured in one of two ways:
These formulas are simple and straightforward but I’ll provide an example for further understanding.
If an investor spends $1000 in order to advertise a truckside ad, it acts as the cost of investment. After the first two months of campaigning, that investor gains $1400. In order to get the net return/profit, the investor subtracts the final value of investment which is $1400 from $1000 which is the investment value to get $400. The $400 acts as the net return/profit and is multiplied by 100 percent to make the ROI be represented as a percentage value. By using both formulas, this example can be broken down in one of two ways:
Formula 1:
· ROI = {(1400 – 1000) / 1000} X 100 = 40%
· ROI = 400/ 1000 X 100
. = 40%
OR
Formula 2:
ROI = (400 / 1000) X 100
. = 40%
By using both formulas you should be able to get the same result which is a return of investment rate of 40%.
If you don’t want to personally calculate the rate yourself, there are online ROI calculators that can do the work for you. Here is a general list of some ROI calculators available online:
- https://www.calculator.net/roi-calculator.html
- https://financial-calculators.com/roi-calculator
- https://www.omnicalculator.com/finance/roi
What is Considered As a Good ROI Rate?
What is considered “good” is a subjective term so I can’t personally determine what is good but in the grand scale of things, most people have a collective agreement that an ROI of 12 percent is considered good. Aim for this ROI rate and if your numbers exceed and go beyond 12 percent, you can think that your company to doing excellent or even outstanding. There is also the possibility of the ROI to go beyond 100 percent which is quite rare.
How Effectively do Mobile Ads Drive ROI Rates?
Now that you finished learning about ROI, its time to discuss the main topic. How effectively do mobile ads drive ROI rate? In the ROI game, on the truckside ads make rates rise due to its large reach and captivating effect on people. It is said that mobile billboards circulate between 30,000 to 70,000 vehicle impressions daily. Through multiple studies, It is proven that moving billboards are more memorable to people than traditional standstill ones. Research done by the American trucking associations reveal that 98 percent of In-car audiences are likely to notice truck-side ads. This impression rate is 2.5 times higher than the impressions made by a standard static billboard. This impression rate is not a coincidence or a lucky result because another study had similar findings.
An early 2000’s issue of Outdoor Advertising magazine had similar findings where they reveal that 97 percent of respondents were able to recall the messages written on mobile ads. Mobile ads manages to be an effective marketing method that produces high end results that capture the attention of others at a higher rate than regular stand-still billboards.
With all these studies done, it shows how mobile ads catches the eyes of others but how does the added attention affect a company’s ROI? When a company gets a lot of exposure, it can be really positive for the entire branding. More attention leads to:
- More people who know about your company
- People who take interest in what you have to offer
- The likeliness of sales going up
If people are able to recognize your brand more, they can probably recall what type of services you offer and these people could possibly become potential clients. Other times, they can tell others about your services instead. Just think of it like this:
More Positive Attention = More Business and Sales = More Money Made in Your ROI
ROI rates can continue to rise due to a business’ attempt in capturing the attention of others. If a company was offering a good quality product for a cheap price but have no exposure do you expect them to do well? Sadly no, because how can people buy what you sell when they don’t know what you offer? No matter how great a company is, it can’t do well without some type of exposure to potential consumers. The large exposure truckside ads produces is why they make ROI rates rise . In the long run, mobile billboards creates a positive effect on brand strength, advertisement recall, as well as influence towards purchasing decisions.
Is the Initial Investment of Truckside Ads an Expensive First Step?
When making any company investment, it will become a factor that affects your business’ ROI. it is good to take note of how expensive the first step can be. Compared to google ads, traditional billboards, and commercial television, truckside ads are considered the most cost-friendly marketing channel.
First, let’s consider the competition. A business can spend around $9000- 10,000 per month for a google ad. The profit isn’t guaranteed either because in order to get revenue, people have to click on it. The impression count may be good but a single click can rack in between $0.50- $2.00, it’s hard to even meet the break even point.
For traditional billboards, it could cost $250 monthly to rent a billboard in a rural area. In the city, it can range from $1500-4000. The numbers show that it’s not always easy to find a good spot. Other than the rent there are design costs to consider and the construction of the ad so there’s more production that goes into these static billboards. With this being said, unless the billboard is in a high traffic area, there’s no guarantee that people will even see the ad.
The costs for a TV ad is one that adds up the further along you go into production. First you have to consider the production cost of the set, crew, and actors (If your commercial has some). After that, you have to buy a time slot. For ads that from from the early evening, it can cost $200-2,000 per time. The impression rates are considered high, but you should consider that not everyone watches the commercials! Some people use that time as a restroom break or in today’s day and age, click a skip button.
Now, after looking at the competition, how expensive does it cost to invest in a truckside ad? It can cost around $1000- 5000 to design the ad and could cost about $2000-3000 to rent the ad space. It may seem like a lot but consider how many impressions the ad can get. Rolling ads can’t be ignored like online ads and isn’t cost heavy depending on the area. The ad is moving which makes it more possible to get impressions throughout the city and possibly out of the city as well. In total you can expect to spend 65 cents to reach 1000 people. If you think about it, the initial investment can be pricey but wouldn’t it be considered cheap in the long-run?
How to Check if My Mobile Ad Campaign is Responsible for Lifting my ROI Rate
ROI is a flexible rate. It is not easy to determine what factor makes your ROI rates improve, it can sometimes be a combination of multiple factors. Most businesses don’t rely on one method of marketing but turn to multiple strategies. A good indicator that your mobile ad is responsible for driving your ROI rate is when you notice an increase in website traffic in the first week of two of your truckside ad campaign.
There could also be an increase of people who recognize your brand or the number of customers starts growing. You should also give the opportunity for people to give feedback on how they first heard about your company in the first place. This can either be done through a survey or a simple email. If a high amount of people remember seeing a truckside ad on the street, you should take it into consideration and continue campaigning if that’s the case.
How to Optimize Mobile Ads for the Best possible ROI Rate
There is no average ROI rate that truckside ads produce because each on the road campaign functions with their own different set of factors. It is impossible to judge each campaign equally because certain campaigns run longer than others, the design of the ad could be more stylish and eye-catching than other ads, and the targeted demographic of a campaign can be very different from others.
Although this is the case, I can still give TIPS on how to optimize your own campaign use:
Make a Captivating Ad Design
This piece of advice may sound obvious but sometimes people but it’s important to understand that there’s no limit in creativity. When an ad is really creative it’s typically going to be more well liked and more memorable to the crowd. Remember that since the ad is going to be on a 3D surface, you can play with angles to make people look twice.
Some things to consider design wise is to make sure the ad pops in any background since the truck is moving around to different locations.
Also, now in the digital age, mobile ads can go beyond the traditional printed billboard and work digitally. Some mobile ads include LED lights so the ad can be more visible when the sun sets, and other truckside ads plays videos at the side of their trucks.
Be at the right place at the right time
Really understand your demographic and which areas they should be at what times. Remember to do your research on which times and places your targeted audience can be.
For example: If a company wants to attract students to their services, it’s a smart move to have the ad trucks go on routes near schools around 3 pm because that’s when students come normally end class and plan to go home. Understand your audience well enough to establish when and where are the peak moments for advertising.
Take a Moment to Consider How Long the Campaign Should Run
Not all moving campaigns do better the longer they run. Specific ads are better during specific seasons. It’s not wise to promote ice skates at the dead of summer. Know which months people would start considering your services. For seasonal products like ice skates, it would be wise to promote them in the middle of fall or a time before the snow hits so people have that image in their minds.
In all likeliness, investing in a truckside billboard is a good investment for the long run. It is an inexpensive initial cost, it does a good job in brand awareness, and it generates more sales. The best way to increasing your ROI is by making your campaign more attractive. The more appealing something looks, the less people want to look away. When struggling with a low ROI rate, consider a truckside billboard to give it a boost.
Key words: How truckside ads helps ROI, ROI effectiveness of mobile ads, ROI of truckside ads
Sources:
https://www.investopedia.com/articles/basics/10/guide-to-calculating-roi.asp
https://www.ssksigns.com/the-roi-for-vehicle-wraps/
https://movia.media/wp-content/uploads/attachments/oastrainingsalesresearchstats.pdf
https://bigrigwraps.ca/how-to-run-a-successful-truck-ad-campaign/
