Pricing Models

Different advertising media use different pricing models that fit their product. For example, outdoor billboards use fixed pricing for static billboards and loop pricing for digital billboards.

The static model takes into consideration location, traffic, visibility, competition and special factors such as stop signs and traffic lights.

Digital billboards use loop pricing. The billboard plays a loop of 8-second ads (becuase that is the length of time that drivers have to view the billboard as they pass by). These 8-second ads are played along with 25 or 30 other ads in a loop.

Fixed pricing model: As the name suggests fixed pricing model uses a one-off fee for a specific amount of time. You pay the owner a fixed amount to put up your billboard permanently for the duration of time. This model is quick and hassle-free.

Loop pricing model: This model is generally used for a digital billboard that can play different ads on a loop. The media buyers pay for a guaranteed number of playouts or views. The buyer can pay for the number of playouts per loop or pay for a specified number of loops.

 Cost per playout model: The pricing is for the total number of playouts (views) regardless of the loop.

 CPM pricing model: This model uses CPM calculations to determine the value of your Ad space. It means that the cost is determined by every 1000 impressions garnered by the billboard. Often the publisher or owner sets a threshold price in this model to avoid incurring losses. Also, programmatic DOOHs make this model efficient for both parties.

Indoor vs Outdoor Billboards