Does billboard advertising work?

January 3, 2025
8
minutes to read
by
Justin Bohlmann
Table of Contents

Billboard advertising has been a cornerstone of marketing campaigns for decades, offering a high-visibility option to reach large audiences. But with the rise of digital platforms, small businesses often wonder whether this traditional form of advertising still delivers value. To answer this question, examining the effectiveness, costs, and strategies associated with billboard advertising is essential.

Is billboard advertising effective?

Billboards are designed to capture attention quickly. Positioned in high-traffic locations such as busy roads, shopping centres, and urban areas, they provide a consistent presence that is hard to ignore. Unlike online ads, which can be skipped, or TV commercials, which can be muted, billboards remain visible 24/7, ensuring continuous exposure.

Effectiveness, however, depends on several factors:

  • Target audience: Billboards work best when placed in locations frequented by your ideal customers. For example, a gym might benefit from advertising near office districts where professionals commute daily.
  • Simplicity of message: Billboards excel at delivering concise messages. Products or services that can be communicated with a few words or an image often achieve the best results.
  • Repetition: Seeing a billboard repeatedly during daily commutes reinforces brand recognition, making it more likely for potential customers to engage with your business later.

While billboards can be highly effective for brand awareness and local outreach, they may be less suitable for niche businesses or campaigns requiring detailed information.

How much do billboards cost?

Billboard advertising costs vary widely based on several factors, including location, format, and campaign duration. Here's a breakdown:

  • Location: Prime locations, such as major city centres or along busy motorways, can cost between $5,000 and $20,000 per month. In contrast, suburban or rural areas may charge as little as $500 per month.
  • Format: Traditional static billboards are generally less expensive than digital ones. Digital billboards, capable of displaying multiple ads on a rotating basis, often cost between $2,000 and $20,000 per month, depending on the location and frequency of display.
  • Size: Larger billboards naturally command higher prices due to their greater visibility.
  • Duration: Discounts may be available for longer-term contracts. A three-month campaign might offer better monthly value than a one-month deal.

Small businesses on a tight budget can explore options such as:

  • Sharing space with other advertisers.
  • Choosing less central locations.
  • Running campaigns during off-peak times.

Is advertising on a billboard worth it?

Determining the value of billboard advertising requires careful assessment of your business goals, target audience, and budget. Billboards can deliver excellent results for specific objectives:

  • Brand awareness: Billboards are highly effective if your goal is to increase recognition in a specific geographic area.
  • Event promotion: Advertising a local event or grand opening on a billboard can attract significant attention from nearby residents.
  • Complementing other campaigns: Billboards work well with digital and social media campaigns, providing an additional touchpoint for your audience.

However, billboard advertising might not be cost-effective for businesses targeting niche audiences or those relying on direct response metrics. Always weigh the potential return on investment (ROI) against the cost and consider how billboards fit into your marketing strategy.

Is billboard advertising a good marketing strategy?

Billboard advertising is a valuable component of a broader marketing strategy for many small businesses. Its ability to generate awareness and build credibility makes it a powerful tool for:

  • New businesses: A well-placed billboard can quickly introduce your brand to a large audience.
  • Local services: Restaurants, gyms, and retail stores can benefit from high visibility in their immediate area.
  • Seasonal campaigns: Holiday promotions or special offers can gain traction with strategically timed billboard ads.

To maximise impact, integrate billboard advertising with digital campaigns, such as social media or email marketing. This multi-channel approach ensures your message reaches customers in various contexts, reinforcing your brand and driving action.

How do you track the success of billboard advertising?

Unlike digital advertising, which provides detailed analytics, measuring the success of billboard campaigns requires creativity and strategic planning. Here are some methods:

  • Vanity URLs: Include a unique web address on your billboard to track how many visitors it generates.
  • Promo codes: Offer a discount code exclusive to the billboard to measure direct conversions.
  • Customer surveys: Ask new customers how they discovered your business, and include “billboard” as an option.
  • Sales analysis: Compare sales data during the billboard campaign period to previous months or similar periods.
  • Social media mentions: Monitor mentions or hashtags related to your campaign to gauge its reach and engagement.

While these methods may not provide precise figures, they offer valuable insights into your campaign's effectiveness.

What are the steps to creating a billboard ad?

Creating an impactful billboard ad involves a series of well-thought-out steps:

  1. Define your goal: Determine whether your objective is brand awareness, promoting a product or service, or driving traffic to an event or website.
  2. Understand your audience: Identify your target audience and what message will resonate with them.
  3. Select a location: Choose a site with high visibility for your target demographic. Consider traffic patterns, nearby landmarks, and competing ads.
  4. Craft a clear message: Your message should be concise and easily understood within seconds. Avoid overloading the ad with information.
  5. Work with professionals: Collaborate with a graphic designer to create a visually appealing ad. Bright colours, bold fonts, and simple layouts are essential.
  6. Choose the format: Decide between static or digital billboards based on your budget and your required flexibility.
  7. Launch and monitor: Once the ad is live, monitor its performance and collect data for future improvements.

What should you include in a billboard ad?

The most successful billboard ads share common characteristics that make them memorable and effective. Here's what to include:

  • A clear headline: Use a short, bold statement immediately to communicate your message. Avoid complex or ambiguous language.
  • Eye-catching visuals: Strong images or graphics can convey your message faster than text. Ensure they are high-quality and relevant to your brand.
  • A call to action (CTA): Encourage viewers to take action, whether visiting your website, calling your business, or attending an event.
  • Brand identity: Include your logo, brand colours, or tagline to reinforce brand recognition.
  • Contact information: Add a phone number, website, or social media handle for those who want to learn more.
  • Simplicity: Keep the design clean and uncluttered. Less is more when it comes to billboard ads.

Final thoughts

Billboard advertising continues to be a powerful tool for reaching broad audiences and creating a lasting impression. While it may not suit every business or campaign, its ability to build brand awareness and enhance local visibility makes it a valuable option for many small businesses. By understanding the costs, crafting compelling messages, and integrating billboards with other marketing channels, you can make this traditional medium work effectively in today's competitive landscape.

DISCLAIMER: Team Thrive Pty Ltd ABN 15 637 676 496 (Thriday) is an authorised representative (No.1297601) of Regional Australia Bank ABN 21 087 650 360 AFSL 241167 (Regional Australia Bank). Regional Australia Bank is the issuer of the transaction account and debit card available through Thriday. Any information provided by Thriday is general in nature and does not take into account your personal situation. You should consider whether Thriday is appropriate for you. Team Thrive No 2 Pty Ltd ABN 26 677 263 606 (Thriday Accounting) is a Registered Tax Agent (No.26262416).

Why waste time on financial admin when Thriday can do it for you?

Thriday Debit Card
Is your tax return stressing you out?

Book a free call with our resident tax expert Laura, to make tax time, relax time.

Book now
Tax got you stressed? Book a Q&A session with our expert tax agent Laura
BOOK A CALL