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Advertising Costs – How is it measured?

There are mainly three distinctive types of advertising: print – newspaper, magazine and outdoors; electronic and web. One of the most common forms of advertising is the print in which outdoor advertising stands at the top. One of the major concerns of outdoor advertising is the measurement of its cost, which will be a part of the advertising budget. But the question is: how do you measure the cost?

The cost of outdoor advertising depends on several variables like:

  1. The type of printing: 1 color, 2-color, both side printing, etc
  2. The type of material used: PVC, vinyl, mesh, cloth etc
  3. The type of advertising: Vinyl signage, billboards (digital, mechanical, mobile, hoardings, and traditional), building wraps, fence wraps, and printed silt fence.
  4. The target audience: The target audience will vary depending on the product. If you are advertising something like an I-pod then you will find your audience near campuses, supermarkets, pubs etc. If you are promoting a household item then you will find your audience in super markets, city centers and near residential property. The type of product you sell will also determine what type of outdoor advertising vehicle to be used.
  5. Sales: You need to calculate the amount of sales you need. For example: if you have proposed an advertising budget of $10,000 then you need to have sales worth $100,000 to break even or make profits.

The measurement for the cost of advertising is also dependent on the parameters of perspective based performance. The various perspectives that will be taken into consideration include financial perspective, internal perspective, growth and development perspective, and customer perspective. All these will be taken into account and the related percentages for the same to arrive at advertising costs, which will drive revenue.


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From the Blog

Having effective outdoor advertising would require not just sending across the message you want to convey to your targeted clients. Apart from compelling and creative content that would catch the attention of your potential customers, you also have to make sure that the material that you intend to use for you advertising is cost effective
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