Billboard advertising costs can vary widely depending on factors such as location, type, and duration of the campaign.

But there are clear ways to calculate these costs.

Here’s a detailed breakdown of how to calculate billboard advertising costs step by step.

1. Determine the Monthly Rental Cost

The cost of renting a billboard depends largely on its location:

The cost for prime locations, Lagos, Abuja, Ogun state, is usually between ₦350,000 and ₦650,000 per month for static billboards while digital billboards are from ₦1,000,000 and ₦2,500,000 per month.

2. Account for Campaign Duration

Campaign duration plays a significant role in determining the total cost of renting a billboard.

In simpler terms, the longer the campaign runs, the more you’ll pay. To calculate this, multiply the monthly rental cost by the number of months the campaign will last.

For example, let’s say you’re renting a billboard in Abuja at ₦650,000 per month for six months. Your total cost would look like this:

₦650,000 × 6 = ₦4,900,000

This calculation is straightforward, but it’s also important to plan wisely. Extending a campaign for too long without results can strain your budget, while too short a duration might not generate the impact you’re aiming for.

If you’re considering a campaign, think about the time frame that best balances cost and visibility.

3. Add Production Costs

Production costs refer to the additional expenses involved in creating and setting up static billboards.

And… they’re a significant part of the overall cost and they include both printing and installation.

Which means:

Understanding and budgeting for these costs is super important.

Let me break it down for you.

Printing materials like vinyl or flex can cost anywhere from ₦50,000 to ₦200,000, depending on the size and quality of the billboard.

Then, you have installation costs, which typically range between ₦20,000 and ₦100,000.

Both printing and installation are unavoidable expenses if you’re working with static billboards.

Here’s how you can manage these costs effectively:

• Negotiate with suppliers: Talk to multiple vendors to get competitive pricing on printing materials.
• Choose reusable materials: Opt for durable materials that can be reused for future campaigns.
• Plan your installation wisely: Scheduling installations in bulk or during off-peak times can sometimes lower costs.

Accounting for production costs upfront ensures your campaign stays on budget and delivers maximum impact.

4. Calculate Cost Per Thousand Impressions (CPM)

Knowing your cost per thousand impressions (CPM) helps you measure how efficiently you’re spending on ads.

It’s one of the simplest ways to understand the value you’re getting for your money and how much you’re paying to reach every 1,000 people.

But how do you calculate CPM?

Here’s the formula:

CPM = Total Impressions / Total Campaign Cost × 1,000

Let me break it down with an example:

If a billboard costs ₦1,000,000 for one month and delivers 10,000,000 impressions, the CPM would be:

10,000,000 / 1,000,000 × 1,000 = ₦100

This calculation tells you how cost-effective your ad is at reaching people.

How to Minimize Billboard Advertising Cost in Nigeria

Billboard advertising can be expensive, especially in highly competitive areas.

However, here are effective ways to reduce costs without compromising the campaign’s impact.

1. Share Digital Billboards

Sharing digital billboards allows multiple advertisers to take turns displaying their ads.

It’s an effective way to lower costs while still getting valuable exposure for your brand.

Here’s how it works:

Instead of renting the entire screen, you can purchase a 10-second ad slot that rotates with other ads.

This approach could significantly reduce your advertising costs, depending on the pricing structure and demand.

And… to maximize value, focus on choosing billboards in high-traffic areas during peak viewing times.

Sharing ad space doesn’t mean losing impact, it means spending smarter.

2. Negotiate Long-Term Contracts

Negotiating long-term contracts can help you save significant money when renting billboards. Many operators offer discounts for extended rental periods.

For example, a billboard that typically costs ₦1,000,000 per month might be reduced to ₦800,000 per month for a 12-month agreement. That’s a 20% saving and a great way to maximize your advertising budget while ensuring consistent visibility.

To start, discuss your options with the operator. Clearly state your interest in a long-term rental and inquire about any available discounts. It helps to have a clear understanding of your advertising timeline and budget before entering the conversation.

Here’s how you can calculate your savings:

Assume the standard rate for one month is ₦1,000,000. For a 12-month deal at ₦800,000 per month, you’d pay ₦9,600,000 in total, saving ₦2,400,000 compared to the regular rate.

Compare this with the cost of other advertising methods or short-term billboard rentals to understand the value you’re getting.

If the savings make sense for your business goals, proceed to negotiate other contract terms like location preferences or renewal options to maximize the deal.

3. Use Mobile Billboards

Mobile billboards are ads displayed on vehicles like danfo or keke napep (tricycles). They offer a flexible and cost-effective way to reach your audience.

What makes mobile billboards unique is their ability to move through busy streets and neighborhoods, grabbing attention wherever they go.

This type of billboard advertising works especially well if you want to target specific areas or demographics. For example, you could use them to promote your brand in high-traffic areas or near popular local events.

But like any billboard advertising method, you need to plan carefully.

Mobile billboards are most effective when their routes align with your target audience’s daily routines. If the vehicles travel through the right places at the right times, your message is more likely to stick.

To get started, you’ll need to contact companies that offer mobile billboard services. Many of them provide options to customize the vehicle, route, and schedule to suit your business needs.

Here’s how it works:

Assume you want your ad displayed on a keke napep traveling through high-traffic neighborhoods. The operator will plan a route, ensuring maximum visibility for your message.

4. Engage Local Vendors

Engaging local vendors is a smart way to get cost-effective and strategic billboard placements.

Instead of partnering with large advertising agencies, I’ve found that smaller, local operators often offer better rates. They also tend to have billboards in prime locations, making them a great alternative.

To get started, identify local vendors in your target area and reach out to discuss their available options. Many of them are familiar with high-traffic spots and can guide you on the best locations for your campaign.

Here’s how you can approach this:

Assume you want to advertise in a busy market area. A local vendor may already have a billboard in that space or know someone who does. By partnering with them, you could save money and secure a prime spot that reaches the audience you want.

I also recommend negotiating directly with these vendors. Unlike larger agencies, they’re usually more flexible with their pricing and contract terms.

To track the effectiveness of your campaign, monitor changes in customer inquiries, sales, or foot traffic around the advertised area. This will help you evaluate whether the vendor and location are delivering results.

5. Monitor and Optimize Campaigns

Monitoring and optimizing your billboard campaigns is essential to ensuring they deliver the desired results.

Regularly evaluating a billboard’s performance helps you determine whether it’s reaching your target audience and generating the impact you need.

To do this, I recommend tracking key metrics. For example, you can use analytics from QR codes, unique contact numbers, or website visits linked to your campaign to assess its effectiveness.

Here’s how it works:

Assume you’ve included a QR code on your billboard that directs people to a special landing page. By tracking the number of scans, you can gauge how many people engaged with your ad.

If the campaign isn’t performing as expected, take action. This could mean renegotiating the rate with the vendor or switching the billboard to a better location with higher foot traffic.

Remember, optimizing campaigns isn’t just about fixing problems, it’s also about maximizing opportunities. The data you gather will help you refine future billboard strategies and achieve even better results.

How Do You Measure the Success of a Billboard Advertising in Nigeria?

We all know that billboard advertising is notoriously difficult to measure. Unlike digital channels where metrics like clicks and conversions are readily available, assessing the impact of a static ad on the side of a busy road isn’t as straightforward.

As Afeez Adebayo, Founder of Digital Marketing Pro NG, aptly puts it:

“Billboard advertising tend to be hard to measure quantitatively. Try comparing the direct traffic to your website before and after you start advertising. Or check how often people search your brand name on Google after launching your billboard advertising campaign.”

Even with these challenges, it’s super important for businesses to figure out how effective their billboard advertising really is if they want to maximize their return on investment.

Measuring the effectiveness of billboard advertising comes down to two key factors:

1. How many people see it
2. How much value it brings to the business.

There are many layers to consider, so let’s dive straight into the steps to track visibility metrics and the returns that billboard advertising delivers.

1. Traffic Count Analysis

Traffic count analysis is the process of evaluating the number of people or vehicles passing by a billboard daily.

It’s a reliable way to estimate how many potential viewers your billboard reaches and how effectively it captures audience attention during key commuting times.

For instance, placing a billboard along high-traffic routes, such as Lagos-Ibadan Expressway, can significantly increase exposure compared to locations in less busy areas.

One way to gather traffic data is by consulting local traffic agencies like the Federal Road Safety Corps (FRSC) or state traffic authorities such as LASTMA in Lagos.

To make the analysis more precise, consider monitoring peak traffic hours or areas where vehicles naturally slow down, such as intersections or roundabouts, to refine your measurement.

2. Impressions Calculation

Impressions represent the number of people who see your billboard.

The higher the impressions, the greater the potential for your billboard to influence your audience.

But impressions are not an arbitrary number. They’re calculated using traffic data and an estimated percentage of people likely to notice the billboard.

For instance, if 1,000,000 vehicles pass a billboard daily and 60% of people notice it, your daily impressions would be:

1,000,000 × 0.6 = 600,000.

Over a month, that equals 18,000,000 impressions (Monthly Impressions = 600,000 × 30 = 18,000,000).

Tracking impressions helps you understand the visibility and impact of your billboard, so you can make data-driven decisions to improve your campaign’s reach and effectiveness.

3. Engagement Metrics

Engagement metrics measure how effectively your billboard drives interaction from viewers.

These metrics rely on direct response mechanisms that help you track audience actions, like scanning a QR code or making a call.

You can easily make your billboard measurable by adding tools such as:

• QR codes: Direct viewers to a website or landing page, and track the number of scans.
• Unique phone numbers or WhatsApp contacts: Monitor inquiries tied directly to your campaign.

For instance, if a real estate ad includes a WhatsApp line unique to that billboard, tracking the leads becomes seamless.

Monitoring these metrics gives you valuable insights into how your billboard engages its audience and drives measurable results for your business.

4. Brand Recall Surveys

Brand recall surveys measure how well your billboard is remembered by people in its vicinity.

This is a valuable way to evaluate its effectiveness in creating a strong visual and messaging impact.

Often, high recall rates mean your billboard is successfully capturing attention and leaving a lasting impression.

To conduct a survey, ask local residents or commuters if they’ve noticed the billboard and, if so, whether they recall the brand or its message.

Surveys can also highlight areas for improvement, such as adjusting the design or messaging to make it more memorable.

By tracking recall rates over time, you can refine your billboard campaigns to improve their effectiveness and better engage your audience.

5. Sales Uplift Analysis

Sales uplift analysis involves comparing sales data before and after a billboard campaign to evaluate its effectiveness.

It helps businesses understand whether their advertisements are driving more foot traffic and increasing revenue during the campaign period.

To calculate sales uplift, subtract the pre-campaign sales from the post-campaign sales. Then, divide that number by the pre-campaign sales and multiply by 100 to get the percentage increase.

For example, if a supermarket in Ibadan recorded ₦500,000 in weekly sales before the campaign and ₦600,000 after, the sales uplift is 20%.

To track your sales uplift effectively, start by collecting accurate sales data before and during the campaign.

Then, analyze customer behavior patterns during the period, such as increased foot traffic, larger average basket sizes, or higher repeat visits.

You can also segment the data to measure uplift across different product categories or times of the day.

To maximize the impact of your billboard, ensure the message is clear and includes an incentive, like discounts or limited-time offers, that encourages immediate action.

You should also track other influencing factors, like promotions or external events, to isolate the effect of the billboard campaign on your sales uplift.

6. Social Media Mentions

Social media mentions happen when people talk about or share posts about your brand, product, or campaign on platforms like Instagram, X (Formally Twitter), or Facebook.

If your billboard gets a lot of mentions, it’s a sign that it’s capturing attention and resonating with your audience.

On social media, mentions can serve as real-time feedback about your campaign’s effectiveness.

To track these mentions, use social listening tools or monitor hashtags and tags associated with your campaign.

Here’s an example of an X user who shared their thoughts about a Chicken Republic billboard ad they saw. In response, Chicken Republic quoted the post and included an image of the billboard

This one? 🫣 https://t.co/SglhI4wMNy pic.twitter.com/Bg4Fz4C6pC

— Chicken Republic (@ChickenRepublic) September 29, 2023

Here’a also another example of an X user who shared their thoughts about the Cowrywise billboard after it sparked a debate about not having a call to action among X users

Come on!!! I rate this 👏🏾 pic.twitter.com/F1rW5szko7

— Uncle Fá (@victorfatanmi) February 17, 2024

Here’s a helpful guide on how to track social media mentions effectively.

Once you’re tracking them, you’ll be able to see how your billboard sparks conversations and drives awareness.

To get started, search for your campaign hashtags or brand name on platforms like Instagram, X (Formally Twitter), or Facebook.

Now, you’ll see the posts, tags, and mentions of your campaign all in one place.

Screenshot of social media search results showing campaign mentions

Here are some tips to maximize social media mentions:

• Create visually striking billboards that are easy to photograph
• Include a memorable hashtag or tagline that people can share

Engage with users who mention your campaign to build stronger connections.

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