Are digital billboards worth the price? The answer depends on your needs. While they cost more than traditional billboards, their ability to display moving ads, change messages quickly, and attract more attention can make them a good investment in certain cases.
The right choice comes down to your goals, budget, and audience, since both digital and traditional billboards each have their own set of benefits and limitations. To see what affects digital billboard cost, you can review the main factors involved. Be Media specializes in digital outdoor advertising solutions and can help you understand the cost-benefit analysis.
Many businesses now prefer digital billboards for out-of-home (OOH) advertising as digital signs become more common. Besides highways, these digital screens are turning up in shopping centers, airports, and other indoor areas. They don’t just display static images-they often show videos and sometimes allow for interaction, giving customers a richer experience.
This article will explain how digital billboards work, their costs, benefits, downsides, and help you decide if they fit your advertising plans for 2025.
What Are Digital Billboards?
Digital billboards are a new step in outdoor advertising. Unlike old-fashioned static billboards, digital billboards use bright screens to show moving or changing messages. They first appeared in about 2005, much later than traditional billboards, which have been around since the 1800s (or even earlier if you count things like cave paintings). Digital billboards use today’s technology to grab attention in new ways.
These screens are easy to spot along highways and famous landmarks in cities around the world-from Las Vegas to Times Square to Tokyo. Their bright colors and moving images make ads stand out, helping brands deliver messages that stick in people’s minds.
How Do Digital Billboards Work?
Digital billboards use LED screens connected to computers to display ads. Advertisers can upload, change, and schedule new ads remotely over a network. This means you can quickly swap ads, often in minutes, without sending anyone to the billboard itself. Since the content can be updated anytime, businesses can react fast to changes-something you can’t do with traditional printed boards.
Types of Digital Billboards
Most people picture big LED screens along the road when they think of digital billboards. These are the most common, but the technology is also used in smaller displays inside malls, airports, and stadiums.
Some modern digital billboards include interactive features, like QR codes or live social media displays. Newer screens can even display 3D ads, though they are still limited in size compared to traditional billboards that can use props attached outside the edge of the billboard frame.
How Much Do Digital Billboards Cost?
Cost is usually the first thing advertisers ask about digital billboards. They do cost more than regular printed billboards, but knowing what goes into these costs can help you decide if they’re the right fit. Expenses include both upfront setup and ongoing operation.
Initial Investment and Setup Fees
The first cost for digital billboards is high because of the LED screens, electronics, and control system needed. Setting up these high-tech signs requires special tools and skilled workers, so the installation cost is higher than putting up a printed sign. However, after setup, advertisers often don’t have to pay for each new ad since there’s no physical printing or installation, which can help offset the initial expense over time.
Ongoing Operating and Maintenance Costs
After setup, digital billboards need regular electricity and maintenance. The LED lights use a lot of power, leading to bigger electric bills compared to regular billboards. These digital systems need to be checked and sometimes repaired to keep working well.
Electrical problems or software issues mean more repairs and higher costs compared to simple static billboards, which need only occasional touch-ups.
Digital Billboard Rental vs. Purchase
Most businesses rent space on digital billboards instead of buying and installing their own. Renting usually costs between $1,200 and $15,000 a month depending on the size, location, and ad duration.
In top city areas, prices can go well above $10,000 per month; in smaller markets, billboards cost much less. Typically, the rent covers your ad showing during one part of a rotating loop along with ads from other brands.
Cost Comparison: Digital vs. Traditional Billboards
Billboard Type | Monthly Rental | Upfront Production/Setup | Ongoing Costs |
Traditional | $250-$550 (rural)
$1,500-$4,000 (cities) |
$200-$1,000 per design | Low-mainly for repairs or changes |
Digital | $1,200-$15,000
(varies by location) |
High-LED screens & installation; no fee per ad | High-energy, software, and maintenance |
Traditional billboards usually cost less for long, simple campaigns, but digital boards may be a better value if you need to change messages often or show eye-catching videos. Digital boards save on repeat physical production and installation fees.
What Are the Main Pros of Digital Billboards?
Digital billboards offer several advantages over regular printed ones. Here are the main benefits:
- Real-Time Content Updates: You can change ads instantly from anywhere. Run new promotions right away or adjust messages based on the time, weather, or local events.
- Dynamic Creative Display: Digital boards show movement, bright colors, video, and even animations, drawing much more attention than static images. At night or in busy areas, these bright signs really stand out.
- Better Audience Engagement: Moving images and changing messages are more likely to catch people’s attention. More people tend to notice and remember digital billboards compared to static ones.
- Remote Management: All content and schedules can be handled over the internet, so there’s no need for anyone to visit the sign in person to make changes.
- Flexible Ad Rotation: Digital signs typically show ads from several businesses, changing every 6-10 seconds. This allows multiple companies to share the cost of a prime spot and helps you tailor ads to different times of day or groups of people.
- High Visibility: Digital billboards are usually placed in a busy areas, so they reach a lot of people-including drivers and pedestrians-with their bright, noticeable screens.
What Are the Main Cons of Digital Billboards?
There are also drawbacks to digital billboards, including:
- Higher Initial and Ongoing Costs: These signs cost more to set up and maintain than regular billboards. Energy use and repairs for the technology can add up.
- Risk of Technical Problems: Like any electronic device, digital billboards can malfunction. A blank or broken screen means lost advertising time and a poor impression of your brand.
- Local Rules and Zoning: Many areas have tough rules about digital billboards, including where they’re allowed, size, and brightness, because of concerns like light pollution or distractions for drivers. This limits where you can put them.
- Environmental Impact: The electricity needed for digital billboards is much higher than traditional static billboards. They can add to light pollution and electronic waste, especially in cities or places with wildlife.
- Short Viewing Time: Since digital boards rotate through several ads in a loop, your ad only appears for several seconds each cycle. People might miss it if they pass by at the wrong time, and there’s less time to share detailed information.
How Effective Are Digital Billboards in Advertising?
Digital billboards are good at reaching lots of people in busy locations, but measuring their real impact can be harder than with web advertising.
Measuring Reach and Return on Investment (ROI)
Digital billboards deliver big audiences, boosting brand awareness. The Out of Home Advertising Association of America suggests billboard campaigns can have a large ROI-up to 497%. Studies show passengers often notice billboards, and interest in OOH ads goes up year after year.
While it’s harder to link a digital billboard directly to a sale compared to clicking on a web ad, they help people remember your brand. The best ways to measure effectiveness include tracking website visits tied to the billboard and looking for changes in local sales during your campaign.
Case Studies: Digital Billboard Success Stories
Some digital billboard campaigns catch extra attention by using their flexible content. For example, a company might change their ad to match the day’s weather, or respond to local news. These quick changes keep ads current and interesting.
Some campaigns get shared online or in news stories, reaching even more people-like a recent Checkatrade campaign that sparked millions of impressions thanks to online buzz.
What Affects Digital Billboard Success?
- Location: Signs in the busiest areas reach the most people.
- Ad Design: Clear, eye-catching, and simple ads work best due to the short display time.
- Audience: Urban areas or daily commuters may see more value from digital billboards. In quieter places, traditional may be better.
- Content Updates: Changing ads often keeps people interested.
When Should You Choose Digital Billboards Over Traditional Ones?
The best choice depends on your business and goals. Here are some guidelines:
- For fast-changing offers or need to make frequent updates (like restaurants with daily specials or stores with flash sales): Digital is better.
- To stand out with video or animation: Digital billboards give you more creative options.
- To reach city commuters or people passing often: The bright, rotating ads keep the message fresh and noticeable.
- For steady, long-term brand presence, especially in rural or niche spots: Traditional billboards may work better, since your ad is up 24/7 in one place with no rotation.
- If you prefer cost-sharing in prime spots: Digital billboards let multiple advertisers share a premium location, lowering the price for each.
Frequently Asked Questions About Digital Billboard Value
Are Digital Billboards More Expensive Over Time?
Yes, digital billboards usually end up costing more than regular ones. Setup is more expensive, and ongoing electricity and repairs add to the bill. While you save on producing new printed ads, the higher running costs can make long-term use pricier-unless you need to change ads often.
Can Digital Billboards Target Certain People?
These signs can show different ads at different times, such as during the morning commute versus evening traffic. This can help reach certain types of people more effectively than static billboards, but not as precisely as web ads that target users individually.
How Do You Get the Most Out of Digital Billboard Spending?
- Run ads that take advantage of fast changes (like updates for weather or sales events).
- Keep your ad simple so people understand it in 6-8 seconds.
- Use rotating ads to reach more types of customers in one rental.
- Pick locations with heavy traffic-more views means better value.
- Work with advertising experts who know the market and can help place your ads.
Key Takeaways: Are Digital Billboards Worth It?
Are digital billboards a smart buy? They can be, but only if their special features match your advertising goals. Digital billboards let you change ads fast, show videos or animations, and reach large audiences in busy areas.
If you need to react quickly, keep your content fresh, or want to share costs for the best locations, these signs can be a great investment, despite the higher price. For long, unchanging, or simple campaigns in quiet areas, traditional billboards may be more cost-effective.
Digital billboards are more than just an upgrade-they’re changing the way outdoor advertising works, making ads more flexible and interactive than ever before.