I have had a few conversations recently with operators who are putting up their first digital billboards and are unsure what size they should build. At the crux of the decision lies a choice between a more expensive 14’ x 48’ bulletin or a smaller poster billboard that might cost less to build but could bring less revenue.
Assuming the operator has permits that are broad enough to encompass a range of billboard size options, here are the questions I would use as a guide when deciding what size digital billboard to build:
- Where is the location? If it is surrounded by a mountain of clutter (competing signs, power lines, vegetation, etc.), you may want to go taller and larger.
- Is it on an interstate? If so, something 360 sq ft (10’ x 36’) or larger may be in order. Motorists are driving much faster and setbacks are usually further due to large sections of right of way between the road and property lines. Making the sign larger makes it more noticeable and easier to read.
- Is it on a secondary road? If so, you may want to make the sign lower to the ground and smaller. You can still get high impact this way.
- Is it a large or small market? Advertising rates may be the same in a smaller market whether you build a 10' x 36’ or a 14’ x 48’. It may be best build a smaller sign if the revenue would be the same regardless of size.
- What size are the surrounding signs? If predominant size of the signs in the area is 14’ x 48’, you may want to keep to a similar size in order to compete. Then again, you may want to go smaller, which gives you the ability to offer the area a lower price point. The winning strategy may depend on the market and your tolerance for risk.
- Will these be the only signs in the market? If so, you may be able to set the standard. Owning the only digital billboard in town gives you some freedom to set standards for size and pricing. You may be able to get away with a smaller sign and keep the rate high. If you worry about competition coming in later building larger and more marketable signs, you may want to beat them to the punch and go big right out of the box.
Of course certain municipal factors may impact how large you can go, including city and state regulations. Remember that each location and each market is different and your strategy should be tailored individually. Learn as much as you can about the market and talk with other billboard owners in similar situations.
Download our free white paper, "10 Strategies to Succeed with Digital Outdoor" for more tips and advice about going digital.
This is a post I recently wrote for my Digital Signage Today blog.
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ately I have noticed a digital billboard trend that has pleasantly surprised me. In my own experience and through some of Watchfire’s customers, I have seen success in several pretty small markets, markets which could be perceived as a risky place to install a digital billboard. It would seem to go against conventional wisdom for a small-market digital board to be able to bring 2-3x what static boards net, but the fact is it is happening in many small markets.
I believe that it is the absence of local media outlets creates a huge opportunity for digital outdoor. Many of these smaller towns are part of a larger DMA but are 20 - 30 miles from the larger population base they are grouped with as a market. These "satellites markets" as I call them, rarely have their own local television or radio station, with closest signals typically located in the larger neighboring city. Some might have a local weekly newspaper with more ads than content and predictably low circulation. In short, the sparse media mix leaves little way for local advertisers to target this smaller market without paying large market rates and generating wasted impressions. Herein lays the opportunity for digital outdoor.
To illustrate my point, let’s say that a restaurant in a satellite market wants to advertise daily drink and entrée specials. Traditionally, drive time radio would be the first to get these advertising dollars. Due to the fact that they may be 30 miles from the city where the majority of the radio listeners will be, this medium would generate a ton of waste. They are stuck paying big market dollars to reach a 50 mile radius when they only want to reach the local folks in a 5 mile radius who would actually be good prospects. It is true that they will reach the local prospects using broadcast, but consider what they have to pay to do it and how many impressions reached prospects who are too far away geographically to head in for dinner on their way home from work.
This is where I see local digital boards excelling. These satellite advertisers want that flexibility that broadcast and newspaper bring, without all of the waste. Digital outdoor delivers that flexibility in a more targeted manner.
So don’t write off the satellite markets as being too small to justify going digital. Take a look at the local advertising options and see if you can fill a need. It's a lot cheaper and easier to put up a digital billboard than it is to license a radio signal.
Back in 2006, when I was preparing for my first digital billboard deployment, I read every piece of marketing material, industry report and product description that I could get. Putting up one of these billboards was a big investment for my small company and I wanted to get it right. As with many business-related purchases, price was a big issue, but there were other issues that I felt were very important.
Since that first purchase, I have learned that the price of two digital billboards can be very different. A buyer can never truly do an apples-to-apples comparison. There are three things that I will choose over a lower price every time. If you are spending this kind of money, you really need to understand the value of what you are buying in relation to its price.
The three things that I have found to be very important are reliability, image quality (not just from day one, but over time) and software usability. Here is why I think each shoulde be investigated carefully when you consider which digital billboard manufacturer to choose.
Reliability
Nothing makes me more upset than having to write credits. In the billboard business, all we have to sell is time and space. If the advertiser’s ad is not displayed, that is billable time you will never get back. Because of this, reducing down-time on a digital billboard is extremely important. I have seen operators who saved $30,000 on the front end by purchasing a cheaper product only to write $50,000 in credits over the course of the first 24 months due to chronic display malfunction. If you are not sure of the reliability of the product line, be aware of the high risks.
Image Quality
Often when a digital billboard is delivered and installed, it looks great. It is bright and crisp. There are a number of manufacturers that can deliver on that. However, the real test on image quality lies a few years down the road. Your digital billboard investment needs to display great images for 11-15 years. If the boards look tiled, quilted or dull after the first year or two, just imagine how bad they will look after 5-7 years. Take some time before you buy to look at units that have been in use for more than year to see how they look.
Software Usability
One thing I did not consider when I purchased my first digital board was how the software worked. I wrongly assumed that all companies had roughly the same software. I didn’t put that much value on this part of my decision. It turns out the software has become very important to me because I value my time. My time is best spent selling ads or finding additional site locations, not sitting in front of a computer fumbling through confusing uploads, day parts and scheduling. One company’s software can take 2 minutes to schedule a day-parted campaign where another company’s could take 20 minutes. Also, not all company’s software have the same capabilities. Make sure that you can deliver on the functionality that advertisers demand from digital by making sure the software can handle it.
Neil Bell helps Watchfire Digital Outdoor owners jumpstart their digital billboard sales, and is the owner of several digital billboards.
See how other Watchfire digital billboard owners are making their mark in our industry white paper, "Grow Your Business by Thinking Small".
Darrin Friskney, director of Watchfire Digital Outdoor, recently published a blog post on digitalsignagetoday.com discussing five questions to ask your digital billboard manufacturer.
For the past few weeks, the post has been the most popular blog article on the site, which has a global audience of professionals from all sectors of the digital signage market.
Darrin's advice is fairly simple, and yet so often these common sense questions go unanswered. The fact is choosing the right manufacturer is probably the most important decision you'll make when you invest in digital billboards. Your return on investment is directly tied to the quality of the board you choose because up-time, ease of use, and advertiser satisfaction all flow straight to the bottom line.
Buy your digital billboard from a stable company with referenceable customers. Ask about company history, check references, and ask to see some of their boards in operation. Find out where their boards are manufactured and ask to tour their facility.
Consider how well the billboards are built. Engineering, construction and materials can have an impact on the quality and durability of the board. Look for billboards that are energy efficient, with cabinets that are constructed from extruded aluminum and modules that are coated in silicone gel to protect against moisture. Talk to customers who have had their billboards for more than a few years. Ask them about any issues or concerns they have, and if possible, visit their sites to see for yourself how the boards are performing.
Think about service after the sale. Ask about warranty and what types of service and support are available. Does the company stock its own parts and what is the standard delivery time? Do they track service calls to make troubleshooting easier and faster? You want to minimize down-time and associated lost revenue, so efficient service is a must.
Finally, learn about all aspects of operating the billboard. Is the software provided free of charge? Does it include an artwork library? How much and what kind of training is needed? To an advertiser, the appeal of digital billboards is often in the ability to quickly change ads or adjust schedules. Will the software provided with the board be an easy-to-use interface or a clumsy, cumbersome maze of frustration? Ask for a demo of the software and talk with other customers to find out about ease-of-use.
You'll notice one theme in Darrin's advice is to talk to digital billboard customers. As you look for guidance from your peers, you'll want to be sure to watch this customer testimonial video. Watch it now to learn what Watchfire customers have to say about their experience with buying and using Watchfire Digital Outdoor billboards.
One thing that I have noticed while selling digital outdoor space is the lack of imagination that has kept some advertisers from using the medium properly. Because of this, the advertisers didn’t get the return on investment that they could have. They used digital in the same manner as they would with a static board, running only branding and directional messages.
While a digital billboard can certainly function that way, it is a bit like buying a Swiss army knife and only using the knife. There are other tools included that could be utilized. Instead of only branding, why not use it for price points, events and promotions. Day parting, dynamic content and conditional (trigger) content are the tools you should pitch so that these advertisers have the right message displayed at the right time.
As operators, we own the responsibility for properly educating our clients. Advertisers may not know all the great functionality these digital billboards have. They could be using the right tools to get a better return (and renew their space contracts). Getting them educated and engaged is the key to your mutual success.
The next time you are meeting with a new customer, why not get them excited about digital billboards by showing them how to use the can opener, fish scaler and nail file. A little education up front may help you win a longer advertising contract later.
To learn more about the strengths of digital outdoor, download our white paper, 10 Strategies to Succeed with Digital Billboards.
While meeting with a new potential advertiser not so long ago, I was told that they did not believe digital outdoor worked. They had tried it months before in a nearby market with another operator. They explained to me it was a waste of money and it did not show any returns, then thanked me for my time. They just didn’t think they wanted to spend the money again without getting some sort of return.
I have heard this same objection various times in the past and I have learned to ask some questions to get to the bottom of their discontent with digital billboards. I truly do believe them when they tell me that it did not work; but there is always more to the story. How does it work so well for other advertisers but not for these folks?
Over time, I have been able to narrow the reasons why an advertiser’s digital billboard campaign didn’t work. Something is sucking the effectiveness from their campaign. They have TICS issues. TICS is the acronym I use to help me remember the four issues that keep advertising runs from being successful. When they tell you it didn't work, run through these types of questions in order to discover the real cause of their prior advertising failure.
T is for Target. Did they target the right audience? Was the location one that reached their best potential customers? Do they even know who their target really is? If they don’t have this right, they are really off to a bad start.
I is for Idea. What was their marketing idea? Was it any good? Is it played out and boring? Consumers seem to have seen it all, so new ideas are important in order to get their attention.
C is for Creative. What did the copy look like? Was it super wordy or text heavy? Did they utilize the medium, updating copy often and keeping the message fresh? Honestly, “What copy did you run?” is one of the first things to ask when they say digital didn’t work for them. If it is illegible or dull, the ad is doomed to failure.
S is for Spending. Did they spend enough on the campaign? Did they buy only one board in a big market? Did they only buy for a month? Of course it is not going to work if they didn’t make real commitments to a marketing effort.
One thing that I always say to these naysayer customers is that a digital billboard is a delivery system just like other media (and an efficient and fast one at that). Saying digital outdoor doesn’t work is the equivalent of blaming the US Postal Service for your direct mail campaign failing. The message is getting out there. You just need to know the right way to use it.
Darrin Friskney, director of Watchfire Digital Outdoor, recently published a blog post on digitalsignagetoday.com. The post discusses the growth of digital billboards in the United States, and outlines the following five indicators of how and why adoption of digital billboards has grown despite the current recession, and how digital will continue to grow in the future.
- Steady decrease in prices — The prices of digital billboards have fallen nearly 20% in the past couple years as LEDs become more affordable.
- Better energy efficiency — Higher efficacy LEDs allow digital billboards to operate using far less energy today, resulting in lower operating costs. In fact, energy requirements for some boards have been cut in half in just two years.
- Acceptance by states — Many large cities and 82% of U.S. states now allow digital billboards.
- Advertisers understand the value — Both local and national advertisers are taking note of digital billboard features, such as dynamic content. Employing digital billboards to the fullest extent has put them on par with media like television, radio and the Internet.
- Boards look good over time — If calibrated correctly, digital billboards have proven to hold on to their good looks. In addition, boards persevere through time and weather with little maintenance and still look great.
To learn more about these and other trends that are impacting the use of digital billboards, request your copy of the Watchfire Digital Outdoor Trends report.
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One question our customers have when mulling whether to roll-out digital billboards is this: “Will they cannibalize static faces and result in flat sales because ads just move from static to digital?”. The verdict on that question is in, and the answer is a definitive “No”.
Our customers know that an optimally marketed digital billboard should compete with TV, radio and newspaper – not static billboards. The presence of digital in your billboard plant gives you opportunities to reach customers, and advertising budgets, that were spent in those competitive media in the past.
- The bank that runs interest rate specials?
- The hospital that promotes health screenings or guest speakers?
- The retailer with holiday, or weekend, specials?
- The radio station featuring the “now playing” artist and song?
Advertisers, with those specific and timely marketing messages, never consider billboards because the static medium can’t deliver the message. But with the introduction of digital, all those campaigns are a reality. And as a result, your market for advertisers is suddenly much, much larger than it has ever been. Instead of battling it out with other billboard operators for the 5% that an advertiser has budgeted for outdoor, with digital you are in the mix for a piece of their entire ad budget. Instead of being limited to your share of 5%, now you are chasing your share of 100%.
And this isn’t just our opinion. In a recent quarterly earnings call, one of our industry’s leaders discussed this topic. According to their figures, the domestic advertising market grew about 1% in the third quarter. At the same time, revenue from their static faces grew about 1.6% while the digital grew at about 18%. They used that data to illustrate the fact that although they are rolling digital billboards aggressively, the static faces are outpacing the general ad market. They don’t feel that cannibalization is an issue. They understand that they are attracting advertisers that would have slipped away if they didn’t offer digital.
I was reading the Steve Jobs biography this past week, and something he said stuck with me. His opinion was that even though the introduction of the iPhone might have cannibalized sales of iPods, or the iPad might cannibalize sales of laptops – Apple innovated nonetheless. He said, “If you don’t cannibalize yourself, someone else will.” Our customers understand this. Digital billboards are “what’s next” in our industry. The ad budgets are following them. They are the best path to growth. They give you access to huge new markets. If you delay because you are worried about cannibalizing yourself, another billboard operator will.
If you have been out selling digital outdoor, you have most likely heard this objection. Advertisers often try to tell you that they don’t want to advertise on a digital billboard because their ads are not displayed 24/7 as they would on traditional static displays. They also may say that they don’t understand why they should be paying the same ad rates as they would for that static board.
It can be tough to try to combat this opposition, but there are a few ways to manage these objections that have worked for me in the past.
First and foremost, you must establish that the two mediums are not really even comparable. Yes, both are outside and reach the traveling public, but the comparison ends here. While it is true that digitals do divide the advertiser’s display time, they give the advertiser the ability to be timely and relevant. They have the capacity to deliver the RIGHT ad at the RIGHT time, with ad messages that can be changed throughout the day.
Secondly, digital boards are far more captivating. They command attention because they can convey current, late-breaking, and extremely relevant marketing communications. Would the advertiser rather have a single static message that eventually blends in with the landscape or a digital message that is a much better communicator? Which is worth more? Isn’t effective advertising about cutting through clutter and engaging the viewer?
By reducing the need for more costly vinyl copy changes, the advertiser can afford to run specials and promotions on a daily or weekly basis. How much would it cost for production if they wanted to use a static board to run the same messages? You can’t effectively day-part messages on a static board.
So the next time an advertiser doesn’t want to share, you can teach them how to divide and conquer.