The marketing mode of the advertising industry has become more and more diversified, in the saturated advertising market, Billboard ROI has become an important indicator of whether the advertising investment is worthwhile.
Today, let’s learn some knowledge about Billboard ROI, which will help to improve your subsequent investment in billboard revenue.
What is billboard advertising?
Billboard advertising broadly refers to the text or images set on a board based on the purpose of publicizing and conveying information.
Initially, billboard advertisements were mostly text and static images, and then as time progressed, billboards began to enter the digital era, with the emergence of digital billboards that can play pictures and videos. Digital advertising billboards have become an essential and basic component of business due to their excellent image quality and amazing display.
Then in recent years, 3D billboards began to be introduced in the market. Once 3D advertisements appeared, they were frequently discussed for their stunning visual effects.
Types of Billboards
Traditional Billboards
Traditional billboards are mainly graphic signs set up at bus stops, building facades, along highways, etc. The large and stable flow of people on the roads creates a solid foundation for the spread of traditional billboards.
Digital Billboard
Digital billboards usually use LED, LCDs, OLEDs and other display types as the basic equipment for graphic or video displays. Unlike traditional billboards, digital billboards are extremely convenient and easy to replace the content, and are still visible even at night. Because of its good image quality, it is currently used in the mainstream billboard.
Outdoor digital billboards are LED screen billboards due to the lack of brightness of LCD and OLED.
3D Billboard
3D billboards through the three-dimensional technology will be realistic. Three-dimensional video presented on the LED screen, its shocking picture effect and visual impact is amazing, it is always easy to take people’s attention, so in marketing advertising, 3D billboards have a natural advantage.
Mobile Billboards
This type of billboard can be attached to the vehicle, either traditional billboards or digital billboards, but now for good display effect basically use mobile billboards, it can move around in areas with high traffic flow, expanding the scope of advertising advantages.
Billboard Advertising Costs
Location
Plazas with high traffic flow and intersections with heavy traffic, this type of location allows more potential customers to see the advertisement content of the billboard, so the price of advertising in this type of location will also be higher.
Billboard Size
The larger the size of the billboard, the greater the visibility distance, the more people will be able to view the billboard content, and the greater the impact of the billboard content will be.
But again, the larger the size of the billboard, the more it will cost and the more you will have to pay to place the advertisement.
Duration of the advertising campaign
The longer the duration of the advertising campaign, the higher the cost to be paid.
Billboard Type
Between different types of billboards, the difference in cost is very significant. Digital billboards have much better functionality and visual effects compared to traditional billboards, so digital billboards are more expensive; 3D billboards have shocking visual effects added on top of digital billboards, 3D billboards are more costly and expensive, and the more expensive you need to pay to place ads.
Calculating Billboard ROI
Understanding Billboard ROI Basics
Billboard ROI is a marketing metric that is simply the ratio of net profit to cost and is used to measure the impact of placing billboard ads on brand and product sales. Calculating Billboard ROI allows you to visualize whether your advertising campaigns are effective and whether there is room for improvement.
When it comes to advertising and marketing, Billboard ROI is one of the most important marketing metrics to consider when evaluating the return on ad placement and advertising budget.
Key metrics for Billboard ROI
Number of Displays
An important factor in Billboard ROI improvement is the total number of times a billboard is seen, which determines the number of people made to see it and the number of people made to remember the ad, both of which contribute to increasing Billboard ROI.
Reach
This metric is related to the number of times a billboard is displayed, but they are not exactly the same; the number of times a billboard is displayed may be the number of times a person sees the billboard and is counted in the data, whereas the reach indicates the base of the population that sees the billboard. The broader the reach, the higher the Billboard ROI.
Brand Lift
This is measured by market research on how much the brand and product’s favorability in the mind of the user improves before and after the billboard ad is placed. The higher the brand lift, the higher the sales and the higher the Billboard ROI.
Engagement
The change in user visits to the website, social media mentions, and brand searches after a billboard ad is placed. The higher the user engagement, the higher the Billboard ROI.
Sales Lift
Sales are the most intuitive measure of Billboard ROI, and the degree of sales lift after a billboard ad placement is one of the main figures used to calculate Billboard ROI.
Determining Billboard Costs
Calculate the cost of the billboard, including the cost of renting the billboard (if you rent it, calculate the rental fee; if you install it yourself, calculate all the costs of the billboard and the installation fee), the design fee of the advertisement content, and other related costs, the cost of the billboard is also one of the main figures for calculating Billboard ROI.
Calculating Billboard ROI
Billboard ROI (%) = (Billboard ROI – Billboard ROI Cost) ÷ Billboard ROI Cost x 100.
For example, if you spent $20,000 on advertising and ended up with a $70,000 increase in sales, then Billboard ROI = (70,000 – 20,000) ÷ 20,000 x 100 = 250
Then you can calculate your Billboard ROI is 250%.
Advanced Analysis of Billboard ROI
Geographic Analysis
Considering the geographic location of the people who are in line with the brand’s positioning for advertising can increase the value of Billboard ROI.
Time Analysis
The effect of advertisement delivery has a lot to do with the time, for example, even the same place has different off-season and peak season for tourism, even the common intersection or shopping malls, the flow of people will be different at different time, so researching in advance and grasping the optimal time period for advertisement delivery can also increase Billboard ROI.
How to maximize Billboard ROI
Short message
Ads that are in bold and have as little text as possible will help your message to be clear at a glance. Nowadays, people’s attention spans are getting harder and harder to focus on, so if the text is too long and the content is too complicated, people may not continue to watch it. People watch the ad in its entirety to help boost Billboard ROI.
Images or Videos
Images or videos are more intuitive and easy to understand than text, and can be used in conjunction with text to convey the content of the advertisement. By creating images and videos that match the product information as much as possible, and by picking saturated colors for them, the advertisement will be more appealing to the eye, which will make it more likely to increase Billboard ROI.
Choose the right location for your billboard
Choosing locations with high traffic density to arrange billboards for advertising can effectively increase the visibility of ads and achieve the purpose of increasing Billboard ROI.
Create an effective design
Ads with creativity are more able to penetrate into people’s hearts, and sometimes incorporating a little humor and touching elements into the ads will have unexpected effects, using stories to show the ads, or working on images to make it more visually appealing, all of which can help improve Billboard ROI.
Focus on branding
Create content that highlights the brand’s logo without distracting from the product, which creates more brand recall and deepens familiarity with the brand.
Create a clear call to action (CTA)
At the end of the advertisement, add some instructions with strong hints, such as ordering now to get a discount, placing some phone numbers or website contact information, to stimulate the users who have seen the advertisement to become interested in the product and take consumer actions, which will increase Billboard ROI.
Test and Improve
The placement of billboards can be carried out in phases, each phase of the placement of data statistics, based on the results of the statistics to calculate the Billboard ROI, and constantly improve and improve the placement of content and placement, in order to make the billboard advertising to achieve the best results.
Utilize seasonality and special events
Adjusting the advertisement content according to the shopping trend in line with the season is more likely to arouse consumers’ shopping desire, and utilizing special events, such as holidays, music festivals, etc. for advertisement can increase users’ attention and participation, which all help to increase Billboard ROI.
Considerations for Billboard ROI
Budget
The upfront cost of advertising on billboards is a considerable amount of money, and planning and budgeting well in advance is important for the smooth placement of subsequent advertisements.
Design and Message Fit
When designing the content of the billboard, it is important to pay attention to whether the content design of the billboard is in line with the tenets of the local culture, after all, the placement of the billboard is a public place, so as to avoid unnecessary controversy and avoid Billboard ROI decline.
Regulatory and Zoning Restrictions
Some regions have restrictions on the size and brightness of billboards, and familiarizing yourself with these in advance will help you create a billboard that complies with laws and regulations and doesn’t cause disputes, before you can ensure the value of Billboard ROI.
Measurement and Attribution
Regularly organizing data and tracking the process helps us understand whether Billboard ROI meets the expected goal, and if it doesn’t reach the goal, we can also summarize the reasons and make timely adjustments.
Strategic placement and saturation
The delivery of billboards is very common in the market nowadays, how to stand out among the many billboards and improve our Billboard ROI is a point that must be considered, which makes the creative design of billboard content very important.
Conclusion
In the digital era, billboards are still a very important presence for the advertising market.
Through the above content, we understand that in order to improve Billboard ROI, not only should we pay attention to the location of the billboard, the delivery time period and the type of billboard, the content creation of the billboard is also very important.
Producing some emotional, warm content can make users have a more lasting impression of the product, and more positively achieve the purpose of improving Billboard ROI.
