Billboard Advertising: Cost per Thousand Viewers

is a huge market that can make or break your marketing. The world of advertising has come a long way, with much of the analysis now being converted into more of a science. advertising is one of the oldest forms and therefore has a lot more data to show if a decision is a good one for the right return on investment (ROI). If you are considering billboard advertising, here are some easy summaries to help guide your decisions.

The adage ‘a picture is worth a thousand words’ should be your guideline when considering billboard advertising. A single snapshot, image and/or slogan can get your message out in the shortest amount of time. Since billboard advertising is based on the number of views, the concept is converted to a term known as CPM (Cost per one thousand impressions). This is based on the idea of the number of times that ad will be shown or viewed. It’s important to know this data, as you should be comparing it to all of the various forms of media advertising.

The formula that is used for you to get an idea of the investment and views is:

CPM = (Cost of 1 Unit of a Media Program) / (Size of Media Program’s Audience) x 1,000

The “M” in CPM is the use of the Roman Numeral that equals 1,000.

To calculate the CPM, you take the dollar amount invested, divided by the number of viewers and then multiply that total by 1,000.
An example might be: a $5,000 billboard advertisement that will be viewed by an average of 10,000 people. $5,000 divided by 10,000 = .5. .5 x 1,000 = $500. The cost would be $500 for every 1,000 viewers.

Another important factor to keep in mind is that cheap doesn’t always mean quality. You need to reach your target audience at a maximum capacity and often the lesser the cost, the lower the visibility. Marketing experts never rely on the CPM alone to offer an evaluation, but it is a key consideration for you as an advertiser. While the science of billboard advertising may now make a lot more sense, the location, target audience and message are the three additional mainstays of your decision.

A good message needs to be clear, easy and concise without any levels of confusion. It also has to be aimed at the right target audience, at the right time. Lesser costs usually equate to the fact that the location or target audience is not configured in the formula. This lesson has been learned in television advertising, where they guarantee a specific number of views. When they broadcast to the wrong group and the wrong time, the message is lost and usually ends up in free advertising to try to keep the advertising customer.

A good marketing company will work with you to assist in getting the kind of message you need to the audience most likely to buy. The bottom line in this discussion is that you need to see a good return on investment for your advertising dollar. Being aware of the formula base will help you make your decisions.

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