Costs of Billboard Advertising

By Gaebler.com Staff Writer

September 13, 2013

How much does billboard advertising cost? Are the costs of billboard advertising worth the money? Using billboards to advertise your products and services might be a smart move, and billboard prices might be less than you think.

Billboard advertising can be an effective and cost-efficient way for entrepreneurs to spread the word about their products and services. The Outdoor Advertising Association of America estimates that U.S. businesses spent more than $5.5 billion on outdoor advertising in 2003 and is anticipating a healthy increase in 2004. No matter how you slice it, billboard advertising is on the rise in America.

There are a number of reasons for the recent surge in billboard advertising, not the least of which is cost efficiency. Compared to other forms of advertising, billboards are a relatively inexpensive way to get your point across to the general public.

Consider this: A newspaper ad is only good for a day and a television commercial only lasts about thirty seconds. But a billboard ad is working for you twenty-four hours a day, seven days a week.

The cost of billboard advertising ranges from about $700 to $2,500 a month. At that rate, ten billboards could run as much as $25,000 per month. That sounds like a lot of money, until you realize that a full-page ad running for one day in a major newspaper costs about the same.

Advances in technology have also contributed to billboard advertising's cost efficiency. In the past, billboards had to be hand-painted - a time-consuming and costly venture. But with today's computer technology, billboards are designed on a computer screen, printed to vinyl or poster paper, and glued to the billboard structure. The result: Higher quality ads in less time for less money.

Before you jump into billboard advertising for your business, there are a few things you need to understand.

1. The amount of information contained in a billboard ad is limited. If you expect your billboard to convey as much information as a print ad - forget it. It's just not possible. Keep your ads short and catchy. When it comes to billboards think more visuals, fewer words.

2. Billboards are effective, but they do have their limitations. For that reason, (and others), smart business owners view billboard advertising as one part of a balanced marketing strategy. An integrated marketing strategy involving print, broadcast media, and billboards is key for attracting and retaining new customers.

3. Know your market. Since the majority of people who own automobiles are typically more affluent and mobile, billboard ads tend to target middle- to upper-income demographics. It also pays to be aware of the traffic patterns of your target customer base. This will be invaluable in helping you find the right placement for your business' billboard ads.

For more information on billboard advertising in Pennsylvania, Call "The Billboard Guy", Don Mast (814) 660-2012 or email mast@84outdoor.com . 

Magazine 1st-half newsstand sales drop 6.3 percent

Monday August 11, 12:01 pm ET
By Jeremy Herron, AP Business Writer

Magazine circulation flattens, but newsstand sales slump 6.3 percent in 1st half

NEW YORK (AP) -- Newsstand sales of U.S. magazines fell 6.3 percent in the first half of 2008, an industry group said Monday, as rising gas and food costs led consumers to cut back on nonessential spending.

Most top titles, including best-selling Cosmopolitan and O, The Oprah Magazine, had sharp declines. Of the top 10 newsstand sellers, only People, the entertainment news magazine, and In Style posted gains.

"This is nothing more than really just the impact of the economy," said John Harrington, an industry analyst with Harrington Associates. "People are shopping very cautiously and less frequently, avoiding impulse buys, which are what magazine purchases are."

Publishers redouble efforts to sign up subscribers during economic slowdowns because they know newsstand sales will ebb, which they need to offset because advertising rates are based on minimum circulation targets.

Newsstand sales are far more lucrative than subscriptions, though, meaning circulation revenue is dropping at most titles.

"It is easy to manipulate subscription numbers because publishers can sell them at a loss just to meet their rate base," Harrington said. "The growth may not be high-quality subscribers that will renew."

Overall magazine circulation, which includes subscription and newsstand sales, was flat at 349.9 million copies in the period, as paid subscriptions edged higher to 290.2 million copies, the Audit Bureau of Circulations reported in its biannual tally.

Single-copy magazine sales in the six months ended June 30 fell to 44.1 million copies from 47.1 million a year ago. The survey included 467 titles that reported results in both periods.

Like newspapers, magazines have been struggling with declining advertising revenue as readers increasingly go online for news and entertainment. In the second quarter, magazines had 8.2 percent fewer ad pages, the Publishers Information Bureau reported.

Hearst Corp.'s Cosmopolitan magazine, the top-seller on the country's newsstands, had a 6 percent decline to 1.75 million copies -- nearly 114,000 fewer magazines. Top 10 sellers US Weekly, Woman's World and O, The Oprah Magazine each posted a double-digit decline in newsstand sales.

People, published by Time Inc., boosted newsstand sales by 5.2 percent and remained the No. 2 best-selling magazine at kiosks around the country. In Style was also able to increase newsstand sales.

"People has been steady over the years and there's probably more quality to the magazine in terms of what they do" compared with the crowded field of celebrity gossip titles, Harrington said.

In Touch Weekly, down 28.7 percent at the newsstand, and Life & Style Weekly, down 30.2 percent, both added 50 percent to their cover prices in the period.

Everyday With Rachel Ray, the cooking magazine featuring the popular Food Network host, had 6 percent higher newsstand sales and a 36 percent increase in total circulation.

Rolling Stone, the venerable music magazine, said Monday that it will abandon its iconic size for a smaller, more rack-friendly format starting in fall.

Publisher Jann Wenner said the change is not to conserve costs, but partly to offer advertisers and sellers a more uniform size. Wenner Media said the new size will allow for more editorial pages and higher quality paper that will result in sharper photos.

The magazine had 6.6 percent lower newsstand sales of 115,644 issues in the latest period.