Whether your digital billboard is the first one within the area or you are putting up a new one in an area that already has many digital billboards, rate setting is essential for success of your digital billboard. Extremely high rates might chase advertisers away while rates that are too low might mean you are not getting the most out of your investment. All markets vary and there is no general rate for all digital billboard spots. However, do some research and you can come up with a competitive advertising rate for your billboard which will give you a good enough return.
If you are a new member in an existing digital billboard community, you will need to do some hardcore research.
- Look around and notice which advertisers rule the area. Get in touch with them to find out how much they are paying and whether or not they are satisfied with their ROI.
- If there are no other billboards within the area, refer to rates that advertisers are paying for other advertising media within that area.
- Do a traffic analyses for the location of each billboard. Calculate CPM for advertisers and observe how valuable digital billboard advertising is in comparison with other traditional media.
Besides research, there are a few more things you can do for a successful billboard rate setting:
- Inform your customers about how much potential your digital billboard has. Timeliness, day-parting, dynamic content and conditional content are factors that can be used to promote repeat digital customers.
- Assist advertisers with content for the billboard. Include content assistant cost in your rate setting to make it a value added resource.
- During campaigns, encourage advertises to change content. This increases the possibility that they will renew their contract with your billboard.
- For those who make lengthy contracts, reward them with special discounts.
- Make your initial rate slightly higher and then discount it if and when required.