Thanks to everyone who submitted their toughest OOH sales questions. I will continue to tackle the most common questions in the next few installments. Last week I reviewed how to compensate sales reps for selling digital. Today I talk about why one board costs more than another and what minimum spend makes sense.
“Why does board “A” cost more than board “B” when they seem very similar?
It’s important to speak to businesspeople in business terms. Help them understand your OOH company does not set the price of your boards; pricing is determined by supply and demand of the marketplace. Businesspeople will understand this concept. (It is also how/why you sell rate increases; your company’s demand is higher, proving your effectiveness is better.) A higher priced unit must be in higher demand.
This can also be a good way to position your inventory/company against price cutting competitors because the market determines your rates and your demand (advertiser results) is growing. You can wonder aloud to the prospect: “I’m not sure why competitor XYZ doesn’t have more demand on their inventory.”
Advertisers may ask: “Wouldn’t the number of impressions/views determine the price of a board?”
Further explain that often those variables are a starting point, but price will always be determined by supply/demand. Advertisers may challenge you and question: “Apparently there’s no demand on that unit because I see public service copy on it.” Explain it may be to fill a short gap between contracts.
“What’s the minimum spend that makes sense?
Implied by this question is: “What is the minimum spend to assure results?”
There isn’t a magical, universal answer. Probe! Don’t answer this question in a vacuum. This question goes to the very basics of a successful OOH campaign. Minimum spend depends upon:
- Creative (relevant, benefit-driven, timely= strong offer)
- Location(s)
- Duration (reach/frequency-4-8 times per period)
- Number of units
- Market size
- Audit of all other media for the same campaign
Because OOH is the most intrusive and one of the largest choices of any local media, the advertiser’s OOH spending should equal or exceed the monthly amount spent on any medium within their mix. OOH should be funded at a level where it dominates not whispers.
Consider: If you put up a digital OOH ad for one day touting XYZ Hardware store is giving away free $100 bills right now, you only need about a day for it to be effective. Of course, advertisers would go broke doing that. The challenge is to create a compelling, relevant, timely offer that is attractive to the consumer but also is profitable to the advertiser.
NEXT INSTALLMENT: “Is a small OOH sale/campaign ever worth it?”
If 2026 is the year to move your OOH company sales to a new level, we should talk. Learn more about me at OOHSalesFaster.com, Reach me at: KevinJGephart@gmail.com, call me at 612-387-5349.
To receive a free morning newsletter with each day’s Billboard insider articles email info@billboardinsider.com with the word “Subscribe” in the title. Our newsletter is free and we don’t sell our subscriber list.
Paid Advertisement
