Q:

How is the cost of billboard advertising determined?

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Quick Answer

The cost of billboard advertising depends on several factors including the area, size, total impressions and type of production used for the board. Total impressions have the greatest effect on the final cost of a billboard ad.

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How is the cost of billboard advertising determined?
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Full Answer

The traffic that a billboard receives is determined through using two different numbers: the daily effective circulation number and the number of in-market impressions. The daily effective circulation number, or DEC, refers to the number of adults that pass by the board on a daily basis and have a chance to see it. "Total in-market impressions" refers to the total number of adults that are actually likely to look at the billboard on a daily basis. The number of in-market impressions is more important in determining the cost, as companies typically don’t care how many people pass by the billboard – only how many people actually take the time to look at it.

Aside from the cost of the billboard for its total number of in-market impressions, a billboard also has production costs. The billboard must first be created and designed, which is done by using either paper or vinyl. Vinyl is typically about five times more expensive than paper for constructing a billboard.

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