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How to set digital billboards advertising rates in 2021

How to set digital billboards advertising rates

First you should know what is Digital Billboards Advertising?

Digital billboards are computer-controlled LED displays or electronic controlled off premise signs capable of displaying ads, words, symbols, figures, content, or images which will be digitally or electronically changed by remote or automatic means. Advertisements on digital billboards and signage rotate in slide show fashion every 6-8 seconds. Digital billboard displays combine the advantages of traditional billboard advertising with the convenience and innovation of current technology. Digital billboards also are mentioned as LED signs or digital signage.

The Effectiveness of Digital Billboards Advertising

Through the most recent study on DOOH, among consumers noticing digital billboards reported:

  • 52% noticed digital billboards that gave directions to a store, business, or restaurant
  • 57% of them immediately visited the business after viewing the ad
  • 93% of these visiting the business made a sale
  • 52% of viewers with smartphones have engaged in actions on their mobile device after seeing a digital billboard within the past year


Billboard ad costs are below.

How to set digital billboards advertising rates
digital billboards advertising rates

After understanding the general information of digital billboards advertising, so how to set digital billboards advertising rates?

Researching other media rates in your market.

Researching other media rates in your market and using CPM calcuations can assist you set digital billboards advertising rates. Remember that advertisers tend to be more successful once they use digital outdoor and keep their content fresh.

A little homework is required to set billboard rates that give you a good return on your investment but also compare well to other forms of advertising in the area. Start with some solid research in your market. Look at rates for other digital billboards in your market. Check out who is on the billboard and ask those advertisers about what rates they’re paying.

Look at the cost of traditional media in your market.

No other digital billboards in your area yet? No problem. Look at the value of traditional media in your market. The cost of a page ad within the Sunday paper may be a good start line for spots on your digital billboard.

Once you’re within the ballpark on rates, get a traffic analysis finished your board’s location. Use the figures from the traffic analysis to calculate the value per thousand impressions – or CPM – for your customers. This figure lets them compare your rates to traditional media. They’ll see that your digital billboard offers a significantly lower CPM than the other sort of advertising.

How to set digital billboards advertising rates

Educating customers on the real value of digital advertising.

A key aspect that always gets overlooked is educating customers on the important value of digital advertising. Spend time learning about and understanding the capabilities and advantages that digital billboards offer over static boards. Things like ad timeliness, day-parting and dynamic content are all huge selling points which will sway many purchasers faraway from static media.

Once you get advertisers curious about the facility of digital billboards, don’t charge them for creating content. Instead, build that cost into your rates and offer content help as a value-added resource. This gives you the chance for tons of interaction between sales and customers and really strengthens relationships. Businesses that change their content more often during a contract are much more likely to renew.

Begin with a higher digital billboards advertising rates

A final thought on setting digital billboards advertising rates – always begin with a rate that’s a touch above what you initially calculate. If you set your initial rate too low, you’ll find it’s very hard to extend it later. It’s easier to start out high, then discount your rates if competition requires it.

Remember, the CPM of your digital billboard goes to be far less than the other advertising medium. Doing a touch research up front ensures you will not start too low and miss out on tons of revenue potential.

BIG TREE is a Chinese trusted suppliers of outdoor digital billboards for sale and has designed and produced all types, sizes, and configurations of steel structures to the outdoor advertising industry for more than 20 years. Being in the business for two decades, the company offers a wide range of products including LED display billboardbus sheltersoutdoor billboardsstreet furnitureled display billboardlight box,etc. Till now our products have been successfully exported to over 35 countries.

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