How do you calculate the cost per thousand for outdoor advertising?

In established OOH markets the measurement of OOH uses ‘impacts’ rather than ‘impressions’. Impacts are netted down impressions which estimate how many eyeballs will actually see the OOH display. Check out Route.org 🇬🇧 and Geopath.org 🇺🇸 for more detail on how this works.

To calculate the Cost Per Thousand (CPM) for outdoor advertising, divide the total cost of the campaign by the total number of impressions, then multiply by 1,000. Impressions refer to the estimated number of times people will see the ad. For example, if a billboard campaign costs $2,000 and is expected to be seen 500,000 times, the CPM calculation is ($2,000 / 500,000) x 1,000, resulting in a CPM of $4. This metric is crucial for comparing the efficiency of different outdoor advertising options and planning your marketing budget effectively.

Calculate outdoor advertising is hard but it could decide end goal of your campaign is the key factor to calculate and also assessment how effective your campaign and also help you answer hard question when do planing , how, where, when, why … Outdoor marketing it��s depend on so much factor do decide end cost Do a research on competitors Get proposal, price from agency Conclusion 1 test campaign with small budget before do wide campaign with big budget to avoid risk

CPM - CPM stands for "Cost Per Mille," where "mille" is Latin for thousand. CPM is a generic metric used in the cam[aign industry to measure the cost of 1,000 impressions of an advertisement. CPM has 3 types: 1. vCPM - Viewable CPM 2. eCPM - Effective Cost Per Mille 3. CPVC - Cost Per Completed View (for video ads)

In my experience, CPM refers to cost per mille, or cost per thousand impressions (“mille” is Latin for “thousands”). CPM refers to the average cost of one thousand ad impressions or the average amount I pay every thousand times. To calculate my CPM rate, I take the total cost of my OOH advertising campaign divided by the total number of impressions and times 1000. For example, if the ad campaign costs me INR 50,000 for 1,00,00,000 impressions, my CPM is 5 (50,000/1,00,00,000)X1000 = 5. CPM can be calculated at single media site level as well as campaign level. CPM benchmarks can also be decided at city level which help to optimize the media plan.

In outdoor advertising, impressions are typically measured based on the estimated number of people who see the ad. So, if you have the cost of the outdoor advertising campaign and an estimate of the number of walkins or people crossing the area, you can use the basic formula to determine the CPM. I recently did a DOOH campaign in India market and that operates through DV360 where, all the impressions and other metrics are pre determined(estimated) as per the area where the ad is displayed. This is one good way of tracking impressions.

With Outdoor advertising, It is difficult to get the exact data of viewers. However, the best technique is - your customer interaction will automatically increased. if you compare the old month data with the new (where you have started outdoor ads), you may found inbound calls, physical visit, organic traffic on your site. This is the hint that your outdoor ads are working perfectly. Results are slow; gradually it leads to the direct conversion as well as it helpful in creating Goodwill, Visibility, & Branding across market.

The most interesting thing I find is 'Impressions' calculation in OOH media measurement. This metric can provide insight into the potential eyeballs exposure of an OOH advertising campaign. The key parameters to calculate include: 1. Number of vehicles in the defined length of road stretch, 2. Types of vehicles in that stretch, 3. Sitting capacity of each type of vehicle, 4. Opportunity To See (OTS) for each vehicle based on weightages applied on the same, 5. Specific time bands of the day, 6. Type of media (Front-Lit, Back-Lit, Non-Lit), etc. Once we gather this detailed information & apply algorithm on input data numbers that needs to be considered for atleast 30 days to normalise anomalies and finalise the impression numbers.

The use of traffic counts and visibility factors in outdoor advertising impressions is a robust method, but it's important to note the increasing role of technology in enhancing accuracy. Tools like Geopath leverage big data to provide a more granular understanding of audience engagement. This evolution in measurement techniques allows advertisers to better assess the value of their outdoor placements and refine their strategies, ensuring that the cost per thousand (CPM) reflects a more precise reach and impact of their campaigns.

Outdoor advertising, unlike online or print media, faces challenges in accurately measuring impressions. Methods include traffic counts, population data, and visibility factors. Organizations like the Traffic Audit Bureau (TAB) and Geopath Insights Suite use data such as GPS and mobile devices to estimate reach in the US. The Outdoor Advertising Association of America (OAAA) and Canadian Out-of-Home Measurement Bureau (COMB) offer guidelines and ratings. Despite efforts, accuracy can be hindered by factors like changing traffic patterns and weather conditions. Advertisers should interpret data cautiously, considering it alongside other metrics to evaluate the effectiveness of outdoor campaigns.

To compare CPM across different media, you need to standardize the metric by calculating the cost per thousand impressions for each medium. This allows you to evaluate and compare the efficiency of reaching a thousand potential viewers for different advertising channels.

Comparing CPM (Cost Per Thousand Impressions) across different media involves evaluating the cost-effectiveness of advertising campaigns on various platforms like television, radio, digital, and outdoor advertising. To make an accurate comparison, calculate the CPM for each medium by dividing the total ad spend by the number of impressions in thousands. This provides a uniform metric to assess the cost of reaching a thousand viewers or listeners across different media. It's essential to consider factors like audience reach, engagement levels, and the specific objectives of the advertising campaign for a comprehensive analysis.

Given the number of people watching TVs across the globe, the CPM is among the highest in the industry. On the other hand, the CPM for advertising on social media is very low due to it's very high reachability. The CPM for billboard ads lies in the middle, but this depends on the display time, location, and whether the billboard is static or digital. These CPM's can directly be related to ad recall rate and creative engagement gathered across media. Generally ad recall rate is ~35% in TV, 11% in print, 32% in Billboards, 15% in digital. the CPM is directly related to objective of campaign and recalls numbers achieved.

Utilizing digital out-of-home (DOOH) advertising via platforms like DV360 in the Indian market provides a more precise and reliable method for tracking impressions compared to traditional outdoor advertising. With predetermined metrics tailored to specific display areas, advertisers gain transparency and accountability in their campaigns. This approach enhances decision-making by offering real-time insights into audience reach and engagement. However, while DOOH offers advantages in impression tracking, it's crucial for advertisers to analyze the data comprehensively and consider additional factors like audience demographics and contextual relevance to optimize campaign performance effectively.

To optimize CPM for outdoor advertising, focus on increasing impressions or reducing costs. Negotiate better rates with vendors, choose high-traffic locations, and design attention-grabbing creatives.

Optimizing CPM for outdoor advertising requires a strategic approach that balances cost-efficiency with high-impact visibility. Leveraging data analytics to understand traffic patterns and audience demographics can inform better location choices, enhancing ad exposure to the desired audience. Additionally, incorporating digital outdoor advertising into the mix allows for dynamic content updates and can potentially offer more precise tracking and measurement of engagement metrics, leading to more informed decisions and optimized spending.

To optimize CPM, I always prefer 2 key parameter: 1. Selection of most relevant & high footfall locations 2. Selection of quality media billboard/ DOOH sites For location effectiveness, traffic density & audience demographics, proximity from malls, corporates, residential areas and other points of interest relevant with category of my brand. secondly, quality of media, further can be optimized by correcting smaller key parameters such as angle of billboard, visibility distance, height from the road, interference to visibility, lit status etc. Optimization of CPM will always be a game of mass & quality that will deliver intended results.

CPM for outdoor advertising is evolving as a scale in recent years. however, I suggest benchmarking these CPMs at category level or geographical level. I have used CPM benchmarks to select the outdoor media sites in certain city. This can be also layered by category level benchmarks. such as few brands prefer to have left side road billboards or billboards near residential areas, irrespective of any city. To select such billboards, setting a specific CPM standard becomes enabler. CPM allocation helps to : 1. Properly distribute the OOH investment, 2. Select quantity of billboards to amplify the reach, 3. Generate ROI in terms of quality of billboards selected This ultimately helps brand affinity & visibility.

To calculate the Cost Per Thousand (CPM) for outdoor advertising, divide the total cost of the advertising campaign by the number of impressions (in thousands) it generates. Impressions refer to the estimated number of people who see the advertisement. For instance, if a billboard campaign costs $2,000 and is expected to be seen by 500,000 people, the CPM would be calculated as $2,000 divided by 500 (since 500,000 impressions are equal to 500 thousands), resulting in a CPM of $4. This metric helps advertisers understand the cost-effectiveness of reaching a thousand viewers.

To calculate the cost per thousand (CPM) for outdoor advertising, divide the total cost of the advertising campaign by the total number of impressions (the audience that sees the ad), then multiply by 1,000. For accurate impressions, consider the location's traffic data, visibility, and ad size. This metric allows advertisers to gauge the cost-effectiveness of different outdoor advertising options by comparing how much it costs to reach a thousand viewers, providing a standardized measure to evaluate the potential return on investment of their ad spend.