Why Outdoor Advertising Still Works

Even in the age of AI and hyper-personalised digital marketing, outdoor advertising costs remain a worthwhile investment. It may feel old school, but its impact is the same as it was 100 years ago, if not better. With digital formats and new innovations, it now delivers stronger performance, with advertisers seeing returns rise by 17% when they invest in Out-of-Home (OOH) campaigns. 

While most marketing now happens on screens, people still need to go outside. As a result, OOH advertising can reach 97% of Australians across a full week. That’s a level of visibility no social platform can match! 

If you’re planning your first outdoor campaign, it’s important to understand how much each format costs and how to get the most value out of every placement. 

But first, let’s break down what affects the price of outdoor advertising. 

What Affects the Price of Outdoor Advertising? 

Outdoor advertising costs vary widely, and understanding what drives these changes helps you plan smarter campaigns and avoid overspending. 

Negotiation 

Negotiation plays a bigger role in outdoor advertising than most advertisers realise. While you can manage it yourself, partnering with the right agency ensures your interests are protected and frees you to focus on your core marketing efforts.  

In outdoor advertising, negotiation is not a bonus skill. It’s essential. Rates often have built-in wiggle room, and providers routinely offer discounts, extras, or added visibility when pressured. Because bargaining is standard practice in this industry, having a team that knows how to negotiate can prevent overspending and unlock far more value from the same budget. 

Location 

“Location, location, location” isn’t just a real estate motto, it applies to outdoor advertising too. It is also one of the most important aspects for most businesses. In fact,  advertiser care more about the billboard location then its overall visibility when planning a new campaign. 

With over 86% of Australians living in urban areas, cities are more expensive to advertise in compared to rural areas. Even within cities, there are tiers of visibility. High-traffic corridors, CBD zones, and busy intersections command higher rates than suburban areas due to stronger foot traffic exclusivity and exposure. 

That said, every location serves a different market. Advertisers should focus on areas that align with their target audience, not just the ones with the most people passing by the screen. 

Size 

Larger ad spaces command higher costs because they require more materials, production time, and installation work. However, the investment can pay off when brand awareness is the goal. For advertisers with limited budgets, smaller formats often deliver better ROI, allowing for more frequent or multi-location exposure instead of a single massive placement. 

Duration 

The length of your booking also affects cost efficiency. Static billboards usually require a minimum of 28 days, while digital billboards can run for as short as 7 days, but longer-term campaigns often come with reduced weekly rates and stronger brand recall from repeated exposure. 

A Breakdown of Outdoor Advertising Cost (By Format) 

Below is a quick look at the typical price range across major formats in Australia. 

Billboards 

Running a static billboard campaign in Australia can cost you between AU$2,000 – AU$30,000 per month per single billboard spot, depending on the size and location. Meanwhile, digital billboards can start at AU$3,000 – AU$50,000 per month, though weekly contracts can be negotiated. 

Here’s a quotation example from recent projects, showing how billboard pricing changes by location, format, and size across Australia: 

Digital Portraits 

Digital portraits are smaller, high-impact screens typically found in malls, transport hubs, or along city streets. Pricing is either per week or per play, depending on the provider. 

Generally, you’re looking at AU$750 per digital screen per week, although programmatic options do exist, which allow you to pay ~AU$1per ad play. 

Longer contracts (1 month up to 6 months) can also be negotiated at more favourable rates, usually at a 10-20% discount overall. 

Bus Ads 

Buses travel across key commuter routes and through densely populated areas, which makes these ad formats deliver repeated exposure throughout the day and across multiple suburbs. These are usually done in 4 – 8 week contracts. 

Bus ads also come in different sizes and formats, from rear panels to full wraps, allowing you to scale your reach based on budget and campaign goals. Here’s a quick overview of the most common options: 

The mobility of bus advertising makes it one of the most cost-efficient ways to build frequency and keep your brand visible to motorists, pedestrians, and public transport users. 

How to Optimise Your Outdoor Advertising Spend 

Here are practical ways to stretch your budget and increase your impact. 

Match placements with audience hotspots 

Effective placement goes beyond picking a crowded location. Context matters. Campaigns with location-relevant creative delivered a 13% increase in sales, 3.7× stronger than the category average (IMAA). Tailor your ad designs to the local community, so it sticks out and makes it feel like you are talking to them. 

For example: 

• Luxury brands perform better in CBDs and affluent areas 
• Daily essentials work well along commuting corridors 
• Local services perform best on suburban arterials near their service areas 

From there, look at the environment around the billboard. Vehicle flow, footpaths, and visibility from offices or apartments all increase how often people see your message throughout the day. 

Blend formats for stronger visibility 

You don’t have to choose just one medium. Multi-format OOH campaigns deliver a 27% increase in sales, performing 4.4× better than the broader category and 1.1× stronger than single-format campaigns (IMAA). 

Your message can stay consistent across formats, but each execution needs to be designed specifically for where it will appear. 

Image from adsoftheworld.com 

An automotive brand, for example, can advertise on: 

• Billboards for hero visuals on major roads 
• Digital portraits for features or promos near dealerships 
• Bus ads to reach daily commuters 

This combination builds familiarity and keeps your model top-of-mind throughout a buyer’s daily journey. 

Design for simplicity and distance 

Outdoor ads are viewed in motion, so your message must be understood instantly. Clear layouts, high contrast, and large type keep your creative readable at speed and from a distance. In fact, simple campaigns delivered a 25% sales increase, performing twice the category average. Clarity isn’t just good design. It’s what makes outdoor advertising work. 

Image from adsoftheworld.com 

A short copy helps. Ads with seven words or fewer consistently outperform cluttered designs because they’re easier to process in the split-second OOH provides. Strong brand assets like your colours, logo, and typography also boost recognition during brief glances. 

Time campaigns strategically 

Timing your campaigns around events and seasonal peaks helps your message land when buying intent is naturally higher. Aligning your ad with what people are already experiencing increases relevance and impact, though these periods often come with higher costs. 

Image from adsoftheworld.com 

Digital billboards make timing even more powerful. You can run ads only during peak hours, switch creatives by time of day, or trigger messages based on weather or current events. This flexibility reduces wasted impressions and ensures your ad appears when your audience is most receptive. For example, Decathlon poked fun at the global IT outage caused by the CrowdStrike incident. Best of all, they did this all within 24 hours of the incident. This is something static billboards just can’t do. 

Track with digital integrations 

Just like digital advertising, OOH can be measured too. Tracking conversions by adding QR codes or short URLs can help you track which boards are producing results.  

Image from adsoftheworld.com 

The insights help you optimise creative, timing, and future placements. 

Negotiate smarter contracts 

Media providers often have more pricing flexibility than most advertisers realise. Bundled placements, remnant inventory, bonus weeks, and seasonal discounts can all lower your cost per impression, and you can almost always negotiate for more value. 

Working with an agency makes unlocking these perks easier. Agencies negotiate daily, know when providers can adjust pricing, and compare proposals across suppliers. This lets you stay focused on strategy while your agency secures the best deal for your budget. 

Book a Consultation with an Outdoor Advertising Expert 

We’ve covered the costs. Now the real question is, are you thinking about launching a campaign of your own? If you need help, we can walk you through the process and help arrange campaign options. 

Our end-to-end approach gives you clarity at every step. We guide your creative and placement strategy to bring your campaign to life. We also negotiate with multiple providers to bring down your outdoor advertising cost and deliver stronger value for your budget. 

Just book a short chat with us to get started. 

Billboard Project Consultant: Omer Bernstein 

Email: omer@mindesigns.com.au 

Phone: 0435 920 802