Are you planning to promote your business with outdoor advertising campaigns but unsure how much it will cost to run them? What is the pricing structure of the billboard? Will it expand your business reach to your audience? And further….
Although Outdoor advertising has numerous benefits that can help your business reach your target market and gain more traffic, without knowing how it works and the pricing models of a Digital out-of-home ad campaign, you cannot opt for an outdoor advertisement.
In the article further, you will get an overview of how much DOOH advertising costs for your business and every aspect related to its pricing.
Introduction-
Digital out-of-home advertising presents marketers and publishers with a vital opportunity to target audiences within specific, real-world settings and optimize revenues.
DOOH is a marketing channel in which promotional media is displayed dynamically and digitally in public, outside spaces. In recent years, DOOH has reinforced OOHs presence on the outdoor landscape, becoming one of the fastest-growing channels in advertising.
Digital out-of-home advertising is expected to increase annually, accounting for the entire increase in the outdoor market. DOOH advertising, on the other hand, is the combination of OOH advertising done in the physical space, adding in digital elements.
Digital Out-of-Home advertising allows for monitoring, tracking, editing, managing, and showing content all on its own in real time. DOOH ads powered by digital technologies are shown to users in a public location, not their own devices.
Digital Out-of-Home Advertising offers different benefits than traditional out-of-home advertising, using technologies such as digital billboards, digital signage, screens, and more. The digital advertisement uses a digital screen rather than a static billboard and is placed there through digital advertising platforms.
OOH, advertising is just the traditional format for advertising outdoors, where an audience may see an advertisement at a public location, transit stop, street, business location, etc. The benefits of technology are numerous, but DOOH advertising offers it via online display ads, enhanced creativity and targeting, consistent traffic, better visibility, and many other eye-catching elements.
What is DOOH Advertising?
A new approach to traditional outdoor advertising, DOOH uses modern technology to improve billboards, posters, and signs. This allows for exciting new features, including audience targeting, remote control of campaigns, and interactivity between the ad and its viewers.
Technology has many benefits for the marketer. It enables them to gather data on their target audience through geofencing technology near their digital billboard for better targeting and to provide information about their ad.
With the rise in digitalization and technology, the growth in the field of DOOH, to advertisements used for business purposes, located in public places, includes screens and other digital and interactive tools.
On the other hand, Digital-Out-of-Home Advertising aggregates OOH Advertising, adding digital elements.
Like other forms of outdoor advertising, DOOH media takes advantage of the public's spaces to ensure that the maximum number see your ads.
Digital out-of-home media allows for delivering media advertisements into the public setting, for example, digital billboards, signage, and screens displayed at places of commerce.
Programmatic DOOH is a crucial advertising component because it automates the media purchasing process and ads served in the digital out-of-home inventory. DOOH advertising is essentially the process of showing ads running on the Internet to digital billboards, interactive bus stops, and pieces of street furniture supporting the delivery of interactive ads.
DOOH offers advantages over technologies used in online display advertising, such as targeting and enhanced traffic data. Still, at the same time, DOOH is entirely impervious to ad blockers, and users cannot skip OOH ads.
While traditional OOH media takes advantage of the public's place to get the word out about your brand, digital OOH takes this to a new level, allowing for customized, interactive content while providing valuable insights into your audience.
With growing interest in digital outdoor advertising, more companies are discovering the DOOH -and learning how this form of media delivers value for marketers everywhere.
DOOH advertising is transforming how advertisers get their messages out into the real world, reaching targeted customers in a more direct, completely non-skippable manner. Digital out-of-home DOOH screens are everywhere. From mainstream locations like billboards and city-based panels to more niche venues like gyms or offices, the medium has an ever-present presence.
Types of DOOH media.
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Digital Billboards
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Street Furniture and Digital Screens at Bus Shelters
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Mobile Billboard Trucks
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Screens in Shopping Malls, Restaurants & Airports
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Auto Roof Top Signs and Mobile Billboards
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Gas Pump Advertising Screens
Pricing Model
What are CPI, CPE, and CPA? What are the differences between each strategy, and how can these be used to plan an outdoor campaign?
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CPI (Cost per thousand Impressions)
This is a metric that shows the ratio of impressions to conversions. CPI (cost per impression) shows which ads get the most conversions from images.
Every time an ad is shown. You have a chance to convert. To get an actual conversion, a user must first see your ad and then convert, but measuring by impressions shows the total possible modifications—an act only after seeing the brand's marketing many times. Therefore, you need images of your brand before potential customers respond.
Let's look at how CPI can be used to understand your ad spending better.
CPI is calculated by dividing the total number of impressions by the total number of conversions.
CPI = conversions / impressions
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CPE (Cost per Engagement)
Pricing has been the dominant buying model for premium display advertising space for years. CPE allows publishers to generate revenue based on volume and will enable advertisers to pay for their impressions at a fixed rate per thousand.
The buying model is ideal for premium inventory, where the value proposition focuses more on branding than direct response. For example, A person buys a full-page ad in a glossy magazine. On the other hand, the CPA (cost per action or earned) model is used as an alternative to CPM by publishers looking for the highest fill rate to ensure that their ads serve all available impressions.
CPA is considered more suitable for performance-oriented advertisers. These methods allow one to manage costs based on a predefined number of users visiting a website or performing an action. However, from a publisher's perspective, generating revenue only when a user completes a click or activity is risky. It is understood that there is no value in showing someone an ad that you have not interacted with directly.
Therefore, when purchasing on a CPM basis, there are restrictions on the types of inventory. Still, the reality is that quality publishers know the value of their stock. Purchasing the CPA model will limit your reach through these premium channels.
CPE = (Advertising Cost / Total impressions) x 1000
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CPA (Cost per Action)
CPA grew in popularity because many companies claimed it would take the risk out of marketers. You only pay for real action.
The actions defined in the cost-per-action contract are directly related to the type of conversion, with sales and registration being the most common.
The cost per action (CPA) model is on the opposite end of the spectrum from the cost per impression model, with the cost per click (CPC) model (which does not apply to DOOH channels) somewhere in between. In the CPA model, the majority of the advertising risk is borne by the publisher, as campaign success depends on reasonable conversion rates of the advertising medium and the advertiser's marketing strategy.
As a publisher, approval of CPA campaigns depends on inventory utilization, with priority given to CPM campaigns.
CPA = Advertising Costs / Number of Actions
Why should you opt for DOOH?
Undoubtedly, DOOH advertising is having a significant impact on the market. Its content-specific targeted ads are dynamic and reach more people. But at what cost is this happening? Can you afford it if you're a newly formed startup? Sure you can. With a clear budget, you can opt for DOOH advertising campaigns.
1. Cheaper than online advertising
Putting your campaign right at the right time will be much cheaper than an online campaign. Choosing the right service provider can help you avoid crowded online spaces and make your brand stand out more.
DOOH campaigns are generally charged based on slot-based pricing. This means that each time slot has a flat rate. A campaign-based model is another model with campaign goals.
2. Reach users on the go
Statistics show that billboard advertising has led more people to visit online websites to gather additional information about the company. So you can serve your customers exactly when they need them. This also improves visibility. In addition, brands have become more accessible and more attractive.
3. It's easy
Easily optimize and personalize campaigns for your users. You can design and change your campaign according to your audience's time, day, and behavior. The Digital campaign's display may be changed at any moment, and it may present the advertisement under the location's real-time data.
What makes one impression better than the other?
The answer to that question is simple. Measuring this means making sure you have clear performance goals. These goals may be based on actual CPA results calculated from CPM or related to brand awareness and measured accordingly. Simply put, the best impressions are those that most often produce the desired results.
Identify impressions that deliver the right results. Determining which images fall into this category requires testing, learning, and fine-tuning. The campaign testing phase depends on how quickly the system and the resources manage its work. Once these are found, campaign management is managing budgets and adjusting targeting.
Things that can change Digital ads pricing
Digital outdoor advertising is a growing medium, but it still has a long way to go to make up the bulk of the pie compared to total media spending, which includes TV, print, and web. We are preparing to be more competitive in the years to come. Here are three things that will power DOOH CPM going forward:
1. Supply and demand
Unlike the Internet, digital outdoor advertising is a finite media model. We have a limited number of screens and a limited daily time to display ads. If the network is 100% sold out, it's not getting enough loads, and more needs to be done.
Filling all of the available screen space in the world, but as media becomes more prevalent, it could be in the future. In that case, the power to "price" is in the hands of his DOOH network owner, with advertising agencies and media as his buyers.
2. Ease of purchase
One of the reasons for the lack of demand is that planning, measuring, and purchasing DOOH campaigns have, until that point, been limited to media buyers. You want to buy audiences, not screens, but getting ads across multiple networks can make planning and billing difficult.
Several aggregation companies have emerged to simplify the process of driving DOOH ad sales based on audience demographics and location rather than individual networks.
Some software tools allow advertisers to target specific demographics locally, thus increasing her CPM for those networks.
3. Interactivity
New technology in the DOOH space allows users to interact with messages rather than being passively exposed to them. This change creates more meaningful contacts that can be used for higher CPMs.
We have the option to run passive advertisements as part of our attractor loop.
Still, we can also run interactive applications to collect information such as mobile phone numbers and email addresses.
Such interactivity allows networks to move from a unit cost per impression to a cost per acquisition (CPA) or cost per engagement (CPE) pricing model. This model guarantees user interaction because you can charge more for your ads. and information.
Conclusion-
Digital outdoor advertising is a marketing channel in which promotional media is displayed dynamically and digitally in public, outside spaces.
Digital media will give you data about the natural world for your audience and make your digital ad more data-driven and accurate. The outdoor campaign becomes easier to execute and more relevant if the pricing model is transparent, and a marketer should know about the conversion from their ad campaign.
