Yes, billboard activates brands and increases their visibility. However, one thing you need to understand is billboard ROI (Return on Investment). This assists you to know the outcome of your effort in the generation of revenues to your business.
This article will reveal the calculation method as well as how to boost returns for business success.
Performance Indicators for Billboard ROI
Impressions and Reach
Impressions means the total number of times that the specific advert placed on the billboard is viewed. If your billboard is located on a busy place, for instance, your impressions will likely increase.
Reach is, however, distinct from impression in that the former is concerned with the number of distinct people who notice your billboard. If your billboard is seen by a diverse audience, it leads to a high reach which means an increase in brand awareness.
Conversion Rates
This shows the proportion of people who make a response after observing the bill board. It could be making a purchase, visiting your website or signing up for a newsletter. It helps you to know the percentage effectiveness of the billboard in capturing leads on the market.
For instance, 100 people can visit your store after seeing the billboard you put up and only 10 of them buy a product. This is an indication that there is a positive ROI as your conversion rate is 10%.
Brand Lift and Sales Lift
Brand lift is an increase in brand awareness. Sales lift, in turn, is an increase in sales contributed to the ad campaign. If your store experiences a 10% increase in brand awareness and sales during your ad campaign, it means there is a positive ROI.
Engagement
This metric calculates how your target market engages with your billboard advertisement. High engagement means your ad is compelling and persuasive and it results in a positive ROI.
Factors that Impact Billboard ROI
Location and Visibility
Your advertisement may be affected by high traffic volume during certain time of the day or week. If you are advertising for something or someone then your billboard ought to be positioned in that vicinity. This is because demographic factors such as age, income and interests can cause impression to increase.
Having your billboard sited in areas that are visible without any form of encumbrance also ensures that there are high impressions.
Design
The message placed on a billboard can be done with few words, bright illustrations, and it can be very effective. The ROI can also be improved by associating your brand image with the design. Also, getting a call to action (CTA) can increase engagement.
Timing and Duration
To achieve greater impact, it is possible to place your billboard during certain seasons and events. Displaying your ad for longer periods can make it reachable to more people.
Campaign Goals
What is the goal of your billboard advertisement? If you are a new brand seeking attention, your ad should be placed in strategic locations to increase the return on investment.
Budget
Billboards differ in their price and this affects the ROI. Depending on your location, your marketing plan could either be expensive or affordable. Displays in high traffic areas are usually more expensive.
Integration with other Marketing Approaches
You could use billboards advert solely or combine it with other marketing approaches. While the latter increases your billboard ROI, it is often expensive. However, using billboards and incorporating it with social media marketing for instance, can enable the tracking of the level of engagement.
Method of Calculating Billboard ROI
The following steps will guide you through a successful calculation:
1. Determine the total Campaign Cost
Cost your ad this include rental cost for the board space, cost of designing the ad and any other charges.
2. Estimate the Impact of the Campaign
Engage the traffic data to assess the impression and administer polls before and after the campaign to assess brand uplift.
3. Attribute Sales to the Campaign
Determine any sales improvement in the course of the campaign. Search for things that might provide you with good information, for example, areas of geography and time.
4. Calculate ROI
Formula for calculating ROI is [(Return from Investment – Cost of Investment) / Cost of Investment] x 100.
“Return from Investment” means the monetary value of the outcomes ascribed to your campaign.
How to Boost Billboard ROI
Visibility
Placing your advert in a location that people cannot see will do you no good. Choose strategic places that is highly visible and easy for people to see.
Asides from the physical location, your design should also have eye-catching visuals to increase visibility. Use rich and vibrant colors, attractive images and clear background.
Time
Displaying content at specific times can increase ROI. For instance, if your ad topic is breakfast products or ideas, then posting your content during the morning is preferred.
Simplicity
Road users do not have the luxury of time to stop and read your message. So, keep your text to a minimum and use bold, clear fonts. No need for unnecessary or many words.
A basic call to action should be added to prompt people into doing something. You can include a website, a phone number, email or anything that will invoke thought.
Use Digital Billboards
With digital billboards, you can incorporate several designs. You can manage and manipulate your content even from a remote location.
Focus on Branding
Nonetheless, your logo should be large enough for it to be seen easily by everyone but not too large that it overshadows everything. Always bear in mind that you are promoting the interest of people in your work or business. Once again, colors, fonts and tones should be consistent.
Run Tests
Make changes in the design of your billboard and at different locations, and you can come to know which one gives you better results. Carry out polls so that you achieve the intended influence of the message.
Conclusion
Your billboard ROI is an important ingredient for business success. By understanding and using key metrics, you can turn your business into a revenue machine. Hence use these mechanisms to monitor progress and obtain outcomes.
If you want to invest in a successful billboard marketing campaign, NSE is just around the corner.