The question of “how much does a billboard cost?” remains a common one as more advertisers and entrepreneurs look to utilize this time-tested advertising format. But it’s important to understand that the answer isn’t as simple as a “price per impression.” In fact, there are multiple factors that contribute to the cost of an OOH billboard.

The most obvious factor is billboard prices in highly trafficked areas are typically more expensive than those in less-travelled areas. However, the size of a billboard also contributes to its price tag. Larger billboards offer a more prominent display and are therefore more appealing to advertisers, which explains their higher price tags.

Other variables include the frequency of the ad, as well as the type and duration of the campaign. A digital billboard can cost 4-6x more than a static one, and purchasing all of the spaces in a rotation for a 100% share of voice (SOV) will result in even higher costs.

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In addition to monthly rent, the cost of a billboard can also include production rates for the physical ad itself. The standard material for a billboard is vinyl, which runs about half a dollar a square foot to produce. Whether the billboard is printed using an agency, an hourly freelancer, or a DIY design tool like Canva, these rates are a significant part of the overall billboard cost.

Lighting is another factor that can affect a billboard’s price tag. Billboards that are lit all night can be seen by a larger audience, which increases their reach and ultimately impact. Additionally, some businesses, such as casinos and all-night restaurants, prefer their billboards to be lit so they are visible when customers arrive at their establishment.