A Comprehensive Guide to Digital Billboard Advertising

Digital Billboard advertising – More Flexible, Less Costs  

Digital billboard advertising is transforming Australia’s advertising landscape, offering a flexible, visible, and cost-effective alternative to traditional billboards. In fact, nearly 40% of all billboards in Australia are now digital, which is the highest ratio of static to digital billboards in the world. Is there a reason why Australians like the digital option better? Let’s find out its benefits. 

Unlike static billboards that display a single ad for extended periods, digital billboards rotate multiple ads in short intervals. This allows multiple advertisers to secure brief placements, even on a per-view basis and enables multiple advertisers to share a billboard. Obviously, this significantly increases the profit potential of a single billboard.

Before you decide to advertise on a digital billboard, there are critical things you need to know. Factors that will significantly improve your ad performance. So, let’s cover some tips to make your next campaign a clear winner. 

Benefits of Digital Billboard advertising 

Digital billboard advertising has surged in popularity due to its multiple advantages over traditional static billboards. Below are some of their key benefits: 

High Visibility and Reach 

Digital billboards are usually placed in high-traffic locations, not just because it’s an obvious benefit. But also because they are very expensive to build. Nearly four times more than static billboards. They are usually erected at locations that allow 24/7 operation of the board, yielding more exposure time.

Dynamic Content and Flexibility 

Digital billboards can display different ads in short intervals, allowing advertisers to make real-time adjustments. You can change messages for specific times of the day or events, which makes your campaigns more relevant. 

This flexibility allows advertisers to engage audiences more effectively based on what’s going on with their lives at any specific moment. For example, wouldn’t you agree that advertising chocolate and flowers combo on Valentine’s Day will yield better results than any other ordinary day?

Faster Launch and Lower Costs 

Launching an ad on a digital billboard is faster and more cost-effective. Content can be uploaded within days, which is ideal for brands needing quick responses to trends. They typically have shorter minimum advertising packages/costs, which gives extra flexibility for advertisers who do not want to commit to long contracts. 

Factors That Impact Costs of Digital Billboard Advertising in Australia 

Digital billboard advertising costs in Australia vary based on several key factors, including location, size, duration, and flexibility of ad placement. Below is a closer look at how these elements influence pricing and what advertisers can expect when budgeting for a digital billboard campaign. 

Billboard location 

Location is a crucial factor in Australia’s digital billboard costs. Billboards in major cities like Sydney, Melbourne, and Brisbane cost more due to higher traffic and visibility. Prime spots along highways, transport hubs, and central business districts (CBDs) have the highest costs because they attract the largest audience. 

For example, a billboard in Sydney’s CBD or along Melbourne’s Monash Freeway will cost much more than one in a smaller town or suburban area with less traffic. In fact, some billboard spots are considered exclusive and are reserved only for specific clients with bigger budgets.

Advertising duration 

Digital billboards are more flexible than static ones, allowing shorter ad times like weekly, daily, or even per view. Static billboards need at least a four-week commitment. This short-term flexibility helps businesses reach audiences during specific events or promotions. 

With pay-per-view (PPV) pricing, advertisers pay only when their ad is shown. This helps manage budgets, test ads, and improve targeting. For example, a coffee shop might advertise only during busy morning hours to reach commuters and leave the digital billboard for another business during the course of the day.  

Size and visibility 

The size of a digital billboard also influences its cost. Larger billboards, which offer more space for visuals and text, are generally more expensive than smaller ones. Bigger billboards are more visible, especially from a distance, making them more effective in high-traffic areas. 

For instance, a digital billboard measuring 4 x 14 metres in a prime airport location will command a higher rate than a smaller format, such as an 8 x 2 m board located in a neighbourhood shopping district. 

Average Pricing for Digital Billboards in Australia 

These are some of Australia’s typical ranges for digital billboard ads: 

Digital billboards in metropolitan areas like Sydney and Melbourne can range from $4,000 to $8,000 per week, depending on the specific location and audience size. Regional digital billboard rates are generally more affordable compared to metro areas. Costs can range from $1,500 to $3,000 per week, making them an attractive option for advertisers targeting specific communities outside major cities. 

Billboard Ad Creative Content Tips 

Digital billboards are highly visible and effective, but with the right creative strategies, you can maximise their impact. Here are some essential tips for designing digital billboard ads that will make a lasting impression. 

Keep the Message Clear and Simple 

Digital billboards are seen from a distance for just a few seconds, so keep the message simple. Use one strong headline or a short phrase and avoid adding too much information, like website links or phone numbers. Focus on what you want viewers to remember (without getting them into traffic accidents). 

Use High-Contrast Colours and Large Fonts 

Readability is crucial. Use high-contrast colours and large, bold fonts that are easy to see from afar. For example, black text on yellow or white text on dark blue stands out clearly. Clear and readable text helps make sure that your ad catches viewers’ attention quickly. 

Optimise Visuals for Immediate Impact 

Use bold, simple visuals that align with your message. High-resolution images and short animations work well, but use movement sparingly so it doesn’t overwhelm the message. Graphics should be easy to understand, and the design should highlight the main point of the ad. Visuals that are too cluttered can confuse viewers and reduce engagement. 

Time Your Messages for Maximum Impact 

Align messages with specific times or events (like Father’s Day, Valentine’s, etc.) to make ads more relevant and engaging. For example, promote lunch specials during midday or holiday sales before Christmas. Wise timing can make your message more effective and ensure it reaches the right audience at the perfect moment – when they are more prone to buy. 

Get Creative and Think Outside the Box 

To create a lasting impression, think creatively about your message and visuals. Avoid generic, forgettable layouts, and consider how you can make a memorable statement. Thinking outside the box is encouraged.

Digital billboards allow for unique possibilities, such as displaying different formats of the same ad on the same board and testing which one resonates best. 

You could even incorporate interactive elements like QR codes or countdown timers, adding an engaging dimension to your ad. The goal is to capture attention, spark curiosity, and leave a lasting impression that sticks with the viewer long after they’ve moved past the billboard. 

Choosing your Billboard location 

Selecting the ideal location for a digital billboard ad can significantly impact its visibility and engagement. Here’s a guide on the key factors to consider when choosing a location, as well as the benefits of rotating multiple ads in high-traffic areas. 

Prioritise high-traffic areas 

High-traffic areas like highways, city centres, or shopping districts offer greater exposure. Choose spots where vehicles or pedestrians may pause, such as intersections with traffic lights, to increase ad view duration. High-traffic, unobstructed locations also attract diverse demographics, expanding your message’s reach and impact. 

Choose perpendicular over parallel billboards 

Billboards that are perpendicular to the road rather than parallel are generally more visible to drivers and pedestrians. A perpendicular placement maximises the ad’s exposure, ensuring viewers see it head-on rather than from the side. This can lead to higher engagement rates, as people are more likely to notice and absorb a message that’s directly in their line of sight. 

Study the demographics of the area 

Different areas attract different types of audiences, so tailoring your location to the demographic you want to reach can make a big difference. For example, billboards located in inner-city areas will often attract younger audiences, including students and young professionals, who are more likely to engage with brands focused on lifestyle, fashion, or entertainment. 

In contrast, suburban locations tend to attract families and older adults, making them suitable for ads related to home products, family-oriented services, and essentials. 

Consider multiple ads vs. a single ad 

Digital billboards offer the unique benefit of displaying multiple ads in rotation. Instead of being limited to one message, you can opt for rotating ads, which can help increase engagement and visibility. This way, you can feature different product offerings, promotions, or messages within the same campaign, broadening your reach. 

This can also be more cost-effective. Multiple advertisers sharing the same space reduces the cost per impression, so you have more time to pace your ad throughout the day, decide to split your ad across different billboards and test different demographics. 

Billboard Advertising Compliance and Permits 

Digital billboards in Australia are subject to various regulatory requirements designed to maintain public safety. These regulations can vary by state, but here are some general rules: 

Content restrictions – Australian regulations prohibit explicit, offensive, or illegal content on digital billboards. All ads must be truthful and transparent. In Queensland, the Advertising Standards Bureau (ASB) manages complaints, and violations can result in fines or ad removal. 

Location and zoning regulations – Digital billboards must follow zoning rules, often restricted in residential areas, schools, or near sensitive community spaces. In Queensland, billboards are allowed along highways and commercial zones but may face restrictions near intersections or heritage sites. 

Brightness and light controls – Digital billboards must automatically dim at night to reduce glare. In Queensland, the Department of Transport and Main Roads enforces brightness standards for both day and night, with penalties for noncompliance. Reducing brightness at night helps prevent distractions for drivers and minimises light pollution. 

Animation and display duration – Most states, including Queensland, regulate animation to prevent driver distraction. Ads must remain static for 6-10 seconds, avoiding sudden flashes or quick motion. Transitions should be subtle, without high-speed effects that could distract drivers. 

Permit application and approval – To install a digital billboard, advertisers must get permits from local councils. In Queensland, installation requires council approval, including location, design, and lighting details. Billboards are subject to compliance inspections, and permits may need renewal. 

The Challenge of Measuring Billboard Marketing Success  

Unlike digital advertising, where user interactions and conversions are easily tracked, measuring the direct impact of billboard campaigns can be a complex challenge. It’s like monitoring a funnel without clear conversion points. While we can estimate impressions and potential reach, determining the exact influence on consumer behaviour remains elusive. 

To navigate this challenge, advertisers must employ a combination of strategies that provide insights into the effectiveness of their billboard campaigns. 

Direct Response Tactics 

Unique Tracking Phone Numbers – Use a dedicated phone number on the billboard to track how many people call because of it. This provides clear evidence of how well the ad is generating leads and driving new customers. You can also gather additional data such as call duration, peak call times, and the effectiveness of different billboard locations, allowing you to make informed decisions about where and when to place future advertisements for maximum impact. 

Custom Landing Pages – Create a unique URL for the billboard that directs users to a specific landing page. By tracking visits and user actions on this page, you can evaluate the effectiveness of the campaign. Custom landing pages also allow you to personalise the user experience based on the content of the billboard to increase engagement and conversion rates. For example, the landing page could feature the same visuals and messaging as the billboard to create a consistent experience, making it more likely that visitors will take the desired action. 

Promo Codes and QR Codes – Include unique promo codes or QR codes on the billboard. Tracking their usage helps determine how well the ad is performing. QR codes make it easy for people to interact with your ad using their smartphones to get an instant connection to your online content. Promo codes can be tailored to specific campaigns, so you know which billboard designs or locations are the most effective. 

Digital Attribution and Geofencing 

Geofencing and Mobile Data – Geofencing technology is used to track mobile devices near the billboard. This helps identify how many people were exposed to the ad and later visited your business or website. Geofencing allows you to draw a virtual boundary around the billboard location and gather valuable data about foot traffic patterns.

This can be used to understand customer behaviour and optimise future campaigns. Additionally, combining geofencing with push notifications can provide an extra layer of engagement by sending targeted ads or messages to people who pass by the billboard, increasing the likelihood of conversion. 

Digital Attribution Through Uplift Analysis – Monitor spikes in digital activity, like website visits or social media mentions, in the area where the billboard is displayed. This helps measure the billboard’s impact on online behaviour. Uplift analysis can also help determine if the campaign is driving brand awareness by comparing online metrics before, during, and after the billboard campaign. For example, you can track whether there is an increase in branded searches or if more people are engaging with your social media posts.  

Traditional Metrics

Impressions and Reach – Estimate the number of people exposed to the billboard by using traffic data. This gives a general idea of audience reach, though it doesn’t directly measure interaction or engagement. Impressions are based on the number of vehicles or pedestrians passing by the billboard, which provides an estimate of how many people might see the ad.   

Cost-Per-Thousand Impressions (CPM) – Calculate the cost for every 1,000 people who see the ad. This helps assess the efficiency of the billboard compared to other advertising channels. By analysing CPM, you can determine whether the billboard is a cost-effective way to reach your target audience compared to digital ads or other traditional media. You can also use CPM to benchmark different billboard campaigns against each other so you can identify which locations or designs provide the best return on investment. 

A New Way to Think about Billboard Advertising 

Digital billboards are transforming outdoor advertising, offering businesses flexibility, better targeting, and greater engagement. Unlike static billboards, digital formats let brands reach viewers with real-time, adaptable content, making it easy to tailor messages, optimise ad spend, and display ads at specific times. 

One great example of enhanced targeting is at Melbourne Airport, where internal digital billboard ads shift based on incoming flights. For instance, ads for passengers from Japan differ from those for travellers from China, taking relevance and engagement to a whole other level. 

With audience-specific targeting, rapid deployment, and measurable engagement, digital billboards offer an excellent way for brands to connect with audiences. As technology advances, digital billboards will play an even bigger role in advertising. They are well-suited for brands looking to make an impact with creative, targeted content that can change as quickly as needed. 

Ready to Make Your Mark? 

If you’re a business owner or marketer, now is the time to explore digital billboards. Contact us to see how this platform can boost your brand’s visibility and help you connect with modern audiences in an impactful way.