On average, Americans spend 70 percent of their lives outside of the home. Because we spend so much time away from the house, marketing agencies invest heavily into out-of-home, OOH, advertising strategies. From massive billboards to small flyers, companies want their voices heard. As technology advances, billboard technology is shifting from traditional, printed billboards to high-resolution digital screens.
The switch to digital outdoor advertising opportunities opens the world of billboard marketing to a world of possibilities. Instead of creating a simple billboard with a photo and slogan, marketers hold the potential to produce stunning displays that update in real-time. The trend toward digital signage brings up the question — are digital billboards effective, and should you invest in them?
Digital signage is an emerging form of advertising that can be placed anywhere where people congregate—from office buildings to malls to airports. The main advantage of digital signage is its ability to change messages instantly so it can target different types of audiences at different times of day or week without any manual intervention required on the part of the advertiser. This makes digital signage very attractive because it’s cost-effective and provides advertisers with a lot of flexibility in their marketing campaigns. It can be used to educate customers, help them find the products they want, and communicate with consumers when it’s convenient for them.
Growth in the Digital Signage Market
Humans are seemingly hardwired to pay attention to screens. We pay more attention to something that moves over something that does not, making digital signs and billboards incredibly more effective at reaching potential customers than static images. In fact, marketers using dynamic displays show an astounding 400 percent more views than static displays.
Digital signs do more than capture our attention. Information on digital signage has an 83% retention rate, which makes them incredibly effective tools for advertising. The statistics supporting our affinity for digital displays are also reflected by businesses switching from analog to digital out-of-home advertising.
The prevalence of digital signage is multiplying, and the industry is trending to be worth nearly $30 billion by 2024. In addition, the North American market for digital signage looks to grow by 42 percent over the next three years. This extraordinary evidence shows that the demand for digital billboards is on the rise.
Digital billboards were initially viewed as a smaller and inexpensive alternative to television advertising — digital billboards are estimated to cost digital signage only one-sixth of what it costs for TV advertising. However, digital billboards have expanded beyond their small screen capabilities and are now viewed as a distinct form of outdoor advertising where digital screens can be placed in high-traffic areas both indoors and outdoors. They have also evolved into digital media platforms that offer a variety of digital marketing tools including digital video, digital audio, digital photographs, and digital animations. Digital billboards have also been called electronic signs, digital displays, LED signs, video screens, and screen displays.
Is Digital Out-of-Home Investment Worth It?
Out-of-home advertising is always an effective way to market your brand — with billboard advertising bringing in an average ROI of $5.97 on every dollar you invest. This fantastic return on investment, coupled with a high recall rate, makes outdoor advertising an excellent choice for your brand. However, digital billboards have the potential to work better for your business model.
Overall, the cost of digital vs. static billboards varies depending on the area you choose to target. Digital billboards have significantly higher investment costs and are 50 to 75 percent more costly than traditional billboards. However, the flexibility gained from digital billboards is staggering.
Instead of having a static image that only reflects one advertising campaign, digital billboards have the possibility of making changes to your advertisement as you see fit. The ability to transform your entire advertisement without a complete reset of the billboard opens avenues to create a more dynamic advertising experience for consumers, such as seasonal ad campaigns. The potential for change also allows you to adjust how you display your ads based on client interaction to boost your ROI further.
How to Advertise on Digital Billboards?
If you want to take steps toward a profitable outdoor advertising campaign with digital billboards, we are here to help. At MBI, we specialize in high-definition displays and oversee billboard management for your company. Our seasoned out-of-home advertising team has years of experience in the industry and can help determine the most impactful advertising strategy for you. Contact us today to find out more about how we can help make your outdoor advertising campaign successful.
We are also featured as Top Digital Strategy Agency in various online platforms.