Typically, out-of-home Advertising (Billboards, Public Transportation, Cinema advertising) accounts for 3%-6% of advertising budgets. In the Hispanic market, outdoor advertising lies at around $100 to $110 million and growing at a 10%-12% rate, according to Greg Taylor, Director of Hispanic out-of-home advertising at Miami-based Alcance.
Main Hispanic markets for outdoor advertising are, in this order, Los Angeles, Dallas Ft. Worth, New York, Chicago and Miami. Outdoor Advertising is priced on a CPM basis, with CPM typically lying between $3-$5. These CPMs are lower than most other media categories (e.g. TV, Newspapers and magazines). In the Hispanic market, companies typically charge a lower CPM, as outdoor advertising inventory in Hispanic neighborhoods tends to be outside premium areas for outdoor advertising placement. This is changing, however, as more and more marketers want to specifically reach Hispanics. As Alcance’s Taylor points out, Hispanics tend to live in neighborhoods with a high concentration of Hispanics, which makes campaigns targeting them very effective.
Interesting audit method
Auditing of outdoor advertising is done with data from the Department of Public Transportation, which measures how many impressions a particular ad gets, the figure is calculated based on a formula that also takes into account the distance between the ad and the targeted audience (e.g. whether a billboard is right next to a highway or half a mile away but still visible to the car passengers).
Typically, an outdoor ad located on Los Angeles’ Hollywood Boulevard will get 60,000 to 120,000 impressions a day.