What is Outdoor Advertising? Definition, Cost, and Statistics
Outdoor advertising, often referred to as Out-of-Home (OOH) advertising, is a powerful marketing strategy that targets consumers when they are outside their homes. This form of advertising is displayed in public areas and can reach a large audience, making it an excellent medium for communicating simple messages or building brand recognition. Moreover, it is cost-effective and has the potential to reach people at various times throughout the day.
What is Outdoor Advertising?
Outdoor advertising is any kind of advertisement that is displayed outside, usually in public areas. This includes a wide range of formats, from roadside billboards and digital displays to posters and signs hung in public areas such as buildings, parks, and beaches. It also encompasses transit advertising like bus or train ads, and even mobile billboards on trucks and buses.
Types of Outdoor Advertising
There are several types of options available:
Static Billboards: These are giant posters displayed in popular locations. They are effective in informing crowds about a product or service.
Mobile Billboards: These are graphics and advertisements seen on trucks and buses. Any form of advertising media which is mobile can be used as Outdoor media.
Digital Billboards: These billboards display different advertisements every time. They are an innovative form of outdoor advertisements that bring excellent results to the company.
Transit Ads: These include advertisements on buses, trains, taxis, and even business vehicles.
Street Furniture: This includes posters and ads on bus benches, interiors and exteriors of buses, and signage posted on the exterior of brick-and-mortar locations.
"The average CPM for OOH in the U.S. is around $5.22. This means that for every $1,000 spent on OOH, an advertiser can reach about 191,570 people."
Cost of Outdoor Advertising
The cost of outdoor advertising depends on several factors, such as the type, size, location, duration, and design of the media format. According to some sources12, the average cost of a standard billboard (14’ x 48’) in a metropolitan area in the U.S. ranges from $2,000 to $20,000 per four-week period. Smaller advertising panels, such as bus stop shelters or posters, can cost from $1,000 to $5,000 per four-week period. Digital billboards, which can display rotating ads and dynamic content, can cost from $15,000 to $80,000 per four-week period.
The cost of outdoor advertising can also vary depending on the market and the demand for the media space. Some of the most expensive U.S. cities to buy billboard space are New York, Los Angeles, Chicago, San Francisco, Miami, Las Vegas, Dallas, Houston, Washington D.C., and Seattle. In these cities, premium billboards can cost from $25,000 to over $100,000 per four-week period.
Another factor that affects the cost of OOH advertising is the design and production of the ad. Depending on the complexity and quality of the design, graphic design can cost from $500 to $1,000. For static billboards, vinyl printing and installation can cost from $300 to $500 (sometimes more depending on size). For digital billboards, there is no printing or installation cost, but there may be additional fees for creating dynamic or interactive content.
One way to measure the cost-effectiveness of OOH advertising is to use the metric of cost per thousand impressions (CPM), which is the amount of money spent to reach 1,000 people. According to some estimates, the average CPM for outdoor advertising in the U.S. is around $5.22. This means that for every $1,000 spent on outdoor advertising, an advertiser can reach about 191,570 people. Compared to other forms of advertising, such as TV ($11.51 CPM), radio ($10.25 CPM), or print ($11.66 CPM), OOH advertising has a lower CPM and a higher reach.
"71% of consumers often look at the messages on out-of-home advertisements. Additionally, 34% of consumers reported having made a purchase due to an outdoor ad’s influence."
Outdoor Advertising Statistics
Outdoor advertising is a powerful marketing tool that has been proven to deliver impressive results. Here are some statistics that highlight the effectiveness of OOH advertising campaigns.
Key Statistics
- Revenue: Outdoor advertising revenue reached approximately 8.94 billion USD in 20191. The global OOH advertising market was valued at 54.33 billion USD in 2020.
- Growth: The global outdoor advertising revenue is expected to grow at a CAGR of 4.8% between 2021-2021.
- Consumer Engagement: 71% of consumers often look at the messages on out-of-home advertisements. Additionally, 34% of consumers reported having made a purchase due to an outdoor ad’s influence.
- Online Interaction: Outdoor ads can lead to a 38% increase in mobile interaction between brands and consumers3. Furthermore, 28% of consumers engaged in some form of online search in response to an outdoor ad.
- Recall Rate: Mobile billboards have an impressive 97% recall rate among viewers.
- Consumer Conversion: Outdoor advertising increases consumer conversion by 14% when combined with a mobile or online campaign.
- Future Projections: The global out-of-home advertising market is projected to grow at a CAGR of 10.1% between 2021-2028.
These statistics clearly demonstrate the power and potential of OOH advertising campaigns. Whether you’re a small business owner looking to increase local awareness or a large corporation aiming to boost brand recognition, outdoor advertising can be a highly effective part of your marketing strategy.
Conclusion
In conclusion, outdoor advertising is a versatile, affordable, and efficient mass-market medium. It can be used for branding, broad messages, support campaigns, and more. Whether you’re driving down the highway or waiting at a bus stop, chances are you’ve been influenced by outdoor advertising. Thank you for spending the time to read our article on outdoor advertising.
