How much do billboards cost?

How much do billboards cost?

A common question I receive on a daily basis is how much do billboards cost? Although it seems there should be a straight forward answer, billboard costs depend on many factors. These factors can include:

• Billboard location
• Billboard Size
• DEC or EOI
• Traffic Type
• Vinyl
• Billboard Supply and Demand

There can be other factors that cause a billboard to cost more or less, but these are the general criteria for pricing a billboard. Below I have outlined each of these factors.

Billboard Location
Location can mean a few things when it comes to billboard pricing; first, what town or city is it in? For example, is it in a big city like New York or Chicago, or a smaller suburban town? Cities tend to cost more than smaller towns because there are simply more people in the city that will likely see your billboard than in a small town. The second factor in billboard location is the road type. Billboards on major highways and interstates such as turnpikes and expressways tend to cost more than billboards on secondary arteries. The more people, the higher the billboard cost (also see DEC).

Keep in mind, that if you are a small business or are targeting a very specific market, sometimes secondary arteries will give you more for your money because it focuses your advertisement to your key market. This way you are only paying for the market segment you are focusing on and not others that your ad may not be relevant to.

Billboard Size
Billboard size is the dimensions of the billboard. Billboards come in many different sizes; a few common sizes are 10x24, 12x24, 14x48, and 16x60. Billboards that are larger are often called spectaculars (large or odd sizes) and wallscapes (billboards on buildings). Generally the smaller sizes (10x24 & 12x24) are found on smaller roads and the larger (14x48 & 16x60) on major roadways. Wallscapes and Spectaculars are typically found in cities or off of major roadways.
Usually when on the same roadways, smaller billboards will cost less than larger boards. Keep in mind that smaller billboards are not always the cheapest, since smaller billboards may be built on roadways with heavy traffic or a desirable demographic.

DEC or EOI
DEC or Daily Effective Circulation is the number of possible impressions your billboard receives on a daily basis. This number is generated from DOT (Department of Transportation) data. DEC shows the number or persons who are 18 years or older that have an opportunity to see your billboard. The higher the DEC the more possible impressions a billboard have. Billboards with a higher DEC typically cost more than those with a lower DEC. For example an expressway billboard may have a 95,000 DEC where a side roadway may have a 35,000 DEC.
EOI or Eyes On Impressions is a new way to calculate impressions. For more information on EOI visit www.eyesonratings.com.

Traffic Type
Traffic type refers to the types of people you have passing the billboard. When a billboard is in a high income area they may cost more because they target consumers with more disposable income. The same is true for billboards located in shopping districts, since consumers are making purchasing decisions nearby. Billboards may cost less in areas with less disposable income.

Vinyl & Installation
Most billboards use vinyl to print the advertisement on, the vinyl is then stretched over the billboard by an installer. Vinyl costs may be included in the total cost of the billboard or can be listed separately. Vinyl cost is based on the size of the billboard, so the smaller the vinyl the cheaper it will be. Typical vinyl costs are between $1.00 per sq ft - $3.50 per sq ft. Installation is also usually based on the size of the billboard. In special cases such as wallscapes and spectaculars, vinyl installation may require special equipment and several people for the install. These types of installations can cost up to $20,000.

Supply & Demand
Like many other products, if there are only a limited number they can be difficult to find and therefore cost more. This can be particularly true for billboards since building one can be a challenging process. Around the 1980’s many towns and cities put limitations on building new billboards and other restrictions that required many billboards be torn down. Today many areas have a limited number of billboards because of the limitations on new builds. For example, route 72 in Ocean County, New Jersey is protected for its Pinelands; no new billboards may be built. This means that only existing billboards are available for advertising in this area. Where billboards are limited, they tend to cost more because there are fewer options to target that market with outdoor media.

Other factors
Other factors that can change the cost of a billboard are:

• The amount of billboards in a specific buy. Often times buying more billboards will get you a better rate.

• Special events can cause a billboard to go up in cost for a particular period of time. This is also true for seasons, billboards targeting tourist areas may cost more to rent in the summer months.
• Length of contract. The longer the contract the better the rate can be.

Below is a general idea of the costs of a billboard. Remember, all the factors above can affect the costs, so these are just to give you an idea of what to expect when looking for a billboard. Rates are typically quoted on a per-month or per period (4 week) basis. Many companies will offer minimum time periods such as 3, 6, or 12 month contracts.

• 12x24 or smaller on a side road- $450-$1500 per month
• 12x40 or larger on a side road- $1000-$2500 per month
• 12x24 or smaller on a major roadway- $1500-$2500 per month
• 12x40 or larger on a major roadway- $2000- $10,000 per month (usually $4,500-$7,500)
• Wallscapes & spectaculars - $15,000 - $100,000 per month

Hopefully this information will help you understand how renting a billboard works and prepare you for the types of questions to ask when searching for the right billboard for your advertising campaign. Remember, there are several factors that can determine cost, and your negotiating skills are included. So good luck and happy billboard buying!

Katie Doyle
Jersey Outdoor Media
2010