2022-2023 Calculating The ROI Of Outdoor LED Advertising


Outdoor LED billboards attract 400% more attention from passers-by than static displays, so the return on investment of outdoor LED displays invested by enterprises is 32% higher than that of print advertising signs.

When you invest in a new LED signage solution, ROI can help you make informed decisions about your future branding and other marketing projects, so how do you measure the ROI of your outdoor LED billboards? You can find out in the following 4 ways:

1. Choose the right location

The location of the LED billboard directly affects the perceived value; the better the location of the billboard (in a high-traffic area), the greater the impact, which will determine how much you charge for the advertising space. 

Advertisers want to put their brand in the most attractive advertising space to increase brand influence.

For example, LED advertisements on multiple crossroads and high-speed one-way highways in outdoor shopping malls. Which side would you prefer to advertise if the price is the same? 90 percent are expected to choose the former.

We also often see another situation: A road only separates stores of the same brand, and their sales are completely different. In addition to considering population density, consumer groups also have consumption habits or other influences.

How to choose the correct location can be considered:

  • DEC: Daily Effective Flow—the number of vehicles and pedestrians passing outdoors each day

  • OTC: Opportunity to reach – how many people passing by are likely to see your LED display? 

  • VAC: The number of people who have visited your ad during outdoor activity hours.

With access to OTC and DEC mobility data, you can check these 4 data: GPS devices, government surveys, road traffic counts, and census.

Considering these three aspects, the higher the value, the stronger the radiation ability, which is the best correct position.

2. Dimensions of digital billboards

The size of the outdoor LED display will affect the cost of investment and the effect of the display, the size is generally based on the location of the on-site installation, and the LED display screen manufacturer will give a professional size solution.

In areas with high population density, the larger the LED billboard, the more valuable the space, the higher the visibility, and the higher the publicity influence, which attracts advertisers to advertise.

3. How many advertisers can you market to

The difference between static billboards and LED billboards is that static billboards allow advertisers to buy space at one time over some time, while digital LED billboards give you the opportunity to fill multiple ad spaces at the same time.

If you want to determine how many advertisers you can sell, you first need to decide whether or not you have purchased a single-sided or double-sided screen.

If it is a double-sided screen, if each advertisement takes an average of 1 minute, within 2 minutes, the LED display can support 4 advertisements.

The specific situation of how many advertisements can be placed mainly considers the frequency and duration of advertisements played by customers in a day, the number of advertisements, and so on.

4. How much can the LED display space charge

On average, advertisers in Detroit spend between $2,000 and $10,000 per week on digital billboards; the cost factors that affect the outdoor LED display space are: the LED display product itself (cost) + installation location + advertisers, etc., each country and region is still different, and the fees charged are other.

Affected by the epidemic, the cost of advertising space in some countries and regions will fluctuate, specific advertising costs can be found through local advertising companies or online consultations to find the approximate price.

In conclusion

Overall, the above 4 points are several key factors to consider when calculating the return on investment of LED billboards. These key factors will give you a better understanding of the investment in LED displays and how to get benefits faster.

If you have any questions about the above topics, you can leave a message below or email us directly, and we will answer you as soon as possible.

Leave a Reply

Your email address will not be published. Required fields are marked *

Let's Start Our Story NOW!

Get 2023 New Price for LED Screen NOW