What is a billboard?

Billboards are large signs that display advertisements outdoors, typically in high-traffic areas, such as along major roads or highways. Companies place billboards at various heights to help make them visible to both pedestrians and drivers.

Here are several characteristics that set billboards apart from other signage:

• Size: Billboards are large so passersby can view them from a distance.
• Location: Companies typically place billboards along interstates, highways and busy city streets where thousands of individuals pass daily.
• Bold, simple designs: Billboards tend to have bold visuals and minimal text, as truck drivers, personal drivers, cyclists or pedestrians need to be able to read the message in a few seconds.

Types of billboards

Most billboards fall into one of three major categories:

Static billboards

Static billboards, or classic billboards, are traditional vinyl displays. They feature large, printed graphics designed to withstand weather conditions and remain visible for long periods.

Benefits of classic billboards can include:

• Affordability: Ads on static billboards may cost less than displays on digital alternatives, such as transit advertising on public buses, depending on ad settings and location.
• Continuous exposure: Static billboards provide 24/7 exposure for your ad.
• Bold, eye-catching visuals: A billboard’s large canvas supports unique designs that can help you connect with consumers.

While static billboards are cost-effective, their messaging is permanent and cannot be easily updated. For example, you can’t update the visuals or rotate ads on these boards. They can be an ideal option for businesses that want a consistent brand presence and have a long-term value proposition, such as law firms or healthcare providers that help clients in a specific way.

Digital billboards

Digital billboards use light-emitting diode (LED) technology to display dynamic, high-resolution ads that can rotate between multiple advertisers.

Benefits of digital billboards include:

• Animation support: LED screens generally support basic animation, so your ad can include engaging motion or changing text.
• Ad rotation: You can run multiple ads throughout the day for A/B testing, which compares the success of two separate ads, or to target different audience needs.
• Flexible scheduling: You can easily schedule ads to inform local customers about flash sales or upcoming events, such as seminars or classes.
• Easier to update: Because teams don’t have to remove and install new signage, updates are typically easier and less expensive.

Digital billboards may cost more than static options, but some companies split digital billboard time between several advertisements, with messaging rotating every few minutes. This option can make this form of advertising more cost-effective, while still attracting attention throughout the day.

Digital billboards may be well-suited for businesses wanting optimal advertising flexibility, such as restaurants promoting lunch versus dinner menus or event venues advertising upcoming shows.

Mobile billboards

Mobile billboards are ads on vehicles, such as trucks, buses or rideshare cars. These ads can be printed wraps, mounted panels or digital displays on the side of moving vehicles.

Benefits of mobile billboards may include:

• Increased reach: Because the billboard likely travels through a city or neighborhood, you can potentially reach more people with a single sign.
• Better cost-effectiveness: Mobile billboards may have a lower cost-per-impression (CPI) than non-mobile digital billboards.
• Unique design: Ads that move through the neighborhood may be more likely to capture full attention than ads that people have been driving or walking by for weeks.

Mobile billboards don’t guarantee repeat impressions, as routes vary and people may not pass by the same time the billboard does each day. However, they can be an excellent option for local businesses wanting neighborhood coverage or brands targeting event attendees. For example, a wellness organization hosting a spa seminar in Times Square may have a mobile billboard that commutes around Midtown Manhattan.

Factors that impact billboard pricing

Factors like market demand and exposure metrics often determine billboard pricing. When evaluating pricing for billboard ads, consider:

• Location and traffic volume: Ads in higher-visibility areas, like near a busy intersection with a traffic light, tend to cost more.
• Format and size: Digital boards and larger displays can increase costs.
• Impressions and audience demographics: These metrics estimate total traffic volume and the specific characteristics of the viewers. For example, high-income earners may result in increased pricing.
• Campaign duration: Longer-term contracts could mean lower monthly costs, while short-term ads may have premium prices.
• Regional market demand: Prices vary by city and state, and local competition for billboards can impact your cost.

Average billboard costs

Location, such as traffic volume or city versus suburban areas, billboard type and size can influence billboard pricing. For example, companies may pay $800 monthly for a smaller static billboard. Others may pay up to $20,000 monthly for a large or digital billboard.

Reasons businesses use billboards

Billboard advertising can offer various benefits depending on your business goals and target audience. Organizations might invest in billboard space for the following reasons:

• Building brand awareness: Billboards help law firms, restaurants, retail stores and other businesses familiarize large audiences with the company’s name.
• Providing directional signage: Billboards can guide people to your physical location, which may be helpful for businesses near highways or in hard-to-find areas.
• Promoting events or seasonal offers: Companies can use billboards to advertise limited-time promotions, entertainment events or new product launches.
• Making a premium purchase: Premium billboard locations, like Times Square or the Sunset Strip, offer unique visibility for brands that want to attract a specific consumer type with their advertisements.

Tips for maximizing ROI on billboard advertising

Billboards can be a cost-effective advertising method when you know how to maximize your ROI. Consider the following tips:

Understand your CPM

Consider your cost per thousand impressions (CPM) when determining how budget-friendly billboards are for your business. Billboard companies estimate how many people pass the billboard location and how many passersby view the billboard each month. If you pay $1,000 a month and people pass the billboard 100,000 times during that period, your CPM is $0.01.

Keep messages simple

Instead of transferring ad components that work on smaller screens to a billboard, hire a graphic designer to create new graphics and text. You can use your brand colors, logo and other elements, but consider simplified forms that work well in big, bold designs.

Pair billboards with online campaigns

Most people only read a few words on billboards as they pass them, so you want your messaging to be strong and invite further interaction. For example, you might use a billboard to direct people to your website, social media page or another online campaign.

Negotiate long-term contracts for better pricing

You might reduce the cost of your billboard ad campaigns by purchasing placement in bulk or negotiating a long-term placement at a lower per-month cost.

Billboard advertising costs vary by location, traffic, format, size and duration. Static billboards are often more affordable with continuous exposure, while digital ones allow rotation, animation, and easy updates at higher prices. Consider factors like high-traffic areas and campaign length drive pricing when deciding, and keep in mind that longer contracts typically reduce monthly costs.