8 Shocking Numbers To Keep In Mind Before You Spend Big On Billboard Advertising
Billboard advertising has long been a staple of outdoor marketing, with its large-scale posters and eye-catching graphics offering businesses a chance to reach a wide audience. However, with the rise of digital marketing and decreased attention spans, the ROI of OOH (out-of-home) advertising, including billboards, has become a pressing concern for many marketers.
As a result, understanding the key numbers behind billboard advertising is crucial for making informed decisions about your marketing budget. In this article, we'll explore eight shocking numbers that will give you a better understanding of the effectiveness – or lack thereof – of billboard advertising and help you make the most of your marketing dollars.
The State of Billboard Advertising
A report by the Outdoor Advertising Association of America (OAAA) reveals that in 2022, the total advertising revenue for the billboard industry in the United States alone reached $7.7 billion. This represents a 10% increase from the previous year, indicating an uptick in investor interest and a growth trend in the industry.
Despite this growth, the OAAA also reports that the share of advertising revenue captured by digital signage and LED boards continued to rise in 2022, accounting for over 20% of total billboard revenue. This shift towards digital signage may indicate a preference for more dynamic, data-driven outdoor advertising options.
The Cost of Advertising on Billboard
The cost of advertising on a billboard varies greatly depending on location, size, and other factors. The OAAA estimates that the average cost per thousand impressions (CPM) for a standard billboard in the United States ranges from $4.50 to $6.50. However, in high-demand areas such as major cities, the CPM can reach upwards of $10 or more.
Another factor to consider is the cost of billboard placement. According to a study by the National Billboard Manufacturers Association, in 2022, the average cost of installing a new billboard in the United States was around $50,000. This includes the price of the billboard structure, the cost of materials, and installation labor.
Why Billboard Advertising May Not Be as Effective as You Think
While billboard advertising can be an effective way to reach a large audience, there are several reasons why its ROI may not be as impressive as expected.
First, the average American spends a mere 5 seconds viewing a billboard, according to research by the OAAA. This extremely short viewing duration makes it difficult for advertisers to effectively communicate their message and generate real results.
Another factor to consider is the proliferation of digital advertising channels. With the rise of social media, streaming services, and online advertising, the average consumer is constantly bombarded with targeted ads, making it increasingly difficult for billboard advertising to stand out.
The Top 8 Shocking Numbers to Keep in Mind
Here are the top 8 shocking numbers to keep in mind before you spend big on billboard advertising:
- The average person spends less than 5 seconds viewing a billboard.
- The US billboard industry brought in $7.7 billion in revenue in 2022.
- 20% of billboard revenue now comes from digital signage.
- The average cost of installing a new billboard is around $50,000.
- The average cost per thousand impressions (CPM) for a standard billboard is between $4.50 and $6.50.
- High-demand areas like major cities can have CPMs upwards of $10 or more.
- Only 1 in 5 people can recall seeing a billboard ad within a day.
- Billboard advertising has a lower ROI than digital advertising channels like Facebook and Google Ads.
The Future of Billboard Advertising
As the advertising landscape continues to evolve, it's clear that billboard advertising must adapt to stay relevant.
One potential solution is the incorporation of digital elements into traditional billboards. By leveraging data-driven insights and real-time targeting, advertisers can create more effective and engaging outdoor advertising campaigns.
However, for now, understanding the numbers behind billboard advertising is crucial for making informed decisions about your marketing budget. By considering the potential drawbacks and limitations of billboard advertising, you can make a more informed choice about how to allocate your resources.
Looking Ahead at the Future of 8 Shocking Numbers To Keep In Mind Before You Spend Big On Billboard Advertising
As the advertising industry continues to shift towards more data-driven, dynamic options, it's likely that the effectiveness of billboard advertising will become even more scrutinized.
However, for many businesses, outdoor advertising will remain a key component of their marketing strategy. By understanding the numbers behind billboard advertising and leveraging new technologies to create more engaging campaigns, businesses can make the most of their marketing dollars and reach their target audience effectively.
In the end, the key to success lies in understanding the complexities of billboard advertising and finding innovative ways to create effective, memorable campaigns that drive real results.
