
Introduction
Billboard advertising remains vibrant in the Philippine marketing industry, which you can see from the sheer number of ad displays dotting along Metro Manila roads and expressways. Today, attention for this out-of-home (OOH) advertising format is leaning towards a preference for non-traditional formats, such as digital billboards. Outcomm itself prioritizes ad spots utilizing the latest technology in LED displays to keep up with the competitive market and bring messages that resonate and make an impact on the right audience.
If you are reading this, then you might be one of the companies in the Philippines that are considering placing an LED billboard and want to learn more about this format, including its price and advantages. No worries, our buyer’s guide can help. Read on to learn which factors affect ad spot pricing in the country and devise a strategy based on these considerations.
Factors That Affect LED Billboard Prices in the Philippines
The cost of an LED billboard campaign in the Philippines will depend on factors like display size, lease duration, location, traffic volume, and demand. The range is wide, plus different agencies will have various pricing strategies that align with their inventory and particular offerings. When asking an advertising agency about their prices, make sure to analyze the following considerations:
Display Size
LED billboard prices in the Philippines fluctuate depending on the size of the display. Normally, the bigger the billboard, the more expensive the ad spot fees. Dimensions of digital billboards vary greatly, depending on the location and the available inventory of the agency you are working with. Also, bigger LED billboards tend to require more maintenance to ensure they function, and such add-on service can increase the price as well.
Note that the billboard size can also affect the pricing of your ad material during production. The larger the display, the more critical it is that you use high-resolution assets, and that means a higher payment for your graphic designers, video editors, and the like.
Lease Duration
The duration of the campaign affects the billboard rental prices as well. The specific length can be as short as a few weeks to six months, or more. Usually, the longer the duration, the likelier you’ll get a discount — the reduced fees are also a way for the agency to encourage a longer campaign period to secure guaranteed revenues. Conversely, shorter campaigns can come with additional charges.
Short campaigns are ideal with LED billboards as they are more flexible — you can put up a time-sensitive ad and return to more generic messaging once the occasion passes, all without taking down the whole display. Naturally, you would have to pay a premium for this flexibility and convenience.
Location
Similar to how TV ads are more expensive when played during prime time, billboard rates are pricier when you place them in prime locations. By ‘prime locations,’ we mean areas with high traffic and visibility, like EDSA and BGC. These are ideal areas not only for the sheer number of people passing through them, but also for the demographics. Many people who pass or arrive at these destinations are employed, own a business, or are bound to malls. They can be easily nudged into checking or buying your products because they have either the purchasing power or the intention to make a purchase.
That said, you should match the potential audience’s common motivations to maximize the billboard’s effectiveness. You should tailor your messaging so that more people from the prime location will notice your ad and take action. This way, you can still have an acceptable ROI, such as boosted brand awareness, even when paying for a prime ad spot in a high-traffic area.
Traffic Volume
Closely linked to the location is the traffic volume in these areas. The more people there are in a location, the more likely it is that the cost of LED billboard rentals will shoot up. Traffic volume, moreover, does not pertain to a fixed number, either. EDSA, for instance, can be more packed during the weekdays as people go to work or school and accommodate fewer vehicles during weekends, when more families are at home or out of town.
Traffic volume is also related to the seasons — the Christmas rush will see more passengers flocking into malls, which makes it the best time to advertise gift items using the LED billboards in EDSA, where these shopping buildings are located.
Demand
Like how products are priced, the higher the demand for electronic billboards, the higher the advertising cost. This is becoming truer by the day as more brands are seeing the convenience and flexibility of digital billboard displays compared to traditional types. Nonetheless, a reliable advertising agency will explain its pricing to you clearly and with transparency, so you don’t have to worry about paying way more than what is necessary.
You should also watch out for trends on social media platforms and check which types of LED billboards get the most attention from online users. It is likely that these formats will be in high demand, and that means you need to plan how to maximize your campaign budget while keeping up with what’s popular at the moment.
Note that to get the total cost, you will have to align the current demand with location, display size, and duration. You can also ask the advertising agency to explain in clear terms how these different factors affect the price of an ad spot.
Conclusion
Looking at the price is essential when you want to utilize LED billboards for your advertising campaign in the Philippines. The cost of each campaign goes beyond the rental price of the inventory — you also need to consider the display size, lease duration, the location of the billboard, the traffic volume in the area, and the current demand for digital billboards.
The key is to communicate your needs and expectations with a reliable advertising agency. At Outcomm, we have the data you need to make an informed decision. Contact our team today to learn more!