I am a genuine lover of technological progress. If a company makes their stuff smaller and/ or cooler than the next company, I'll probably buy it. Next month, as a matter of fact, I'll have purchased Apple iPod #4, though I still dig big the retro look and feel of my first scroll wheel iPod, circa 2001 A.D.
Just recently, evolution happened upon the local Tallahassee outdoor advertising industry when the first digital display was built on Thomasville Road near Market Street. If you've never seen a digital billboard, don't worry, it's nothing to put up a billboard about. It's basically a large flat screen TV that plays a slide show of advertisements. Motion graphics are not allowed since it would become the very worst kind of road hazard – one that detracts attention from our cell phone conversations.
You’d think this would be a welcome improvement, but I've yet to discover the "improvement" part of the equation.
On a traditional billboard, an ad agency sets up the design for the client, and the company that actually owns the billboard structure prints a vinyl sign for about $500. The vinyl sheet is then clamped onto the billboard, which is when a company begins to pay rent for their ad based on an ever-changin formula that includes figures like:
- the average household income of the surrounding neighborhood
- the amount of thru traffic per day
- the average price of gold in Namibia
- then you have to divide by two somewhere
Anyway, for about $1,500 – $2,000 per month, the advertisement stays up for the duration of the contract. It's up 100% of the time — that's every second of every minute of every hour of every day.
On the other hand, when businesses advertise on a digital billboard, they share space and time with as many as five other businesses, with the ads rotating once every six seconds. That means each businesses' ad will be viewed for six seconds per minute — twelve seconds at most if your ad appeared early enough in the rotation. During the other part of the minute, well, the other businesses take turns sitting on the throne. But be patient. Your chance will come around again in about 36 seconds.
While you wait, here's the kicker: On a digital display, an advertisement will stay up about 16% of the time for about 25% more cost as compared to a traditional billboard. Upon realizing this fact, I was hoping my rep would explain further, but he started to sprinting toward closing the sale.
"The great thing is," my rep said, "you can change the message at a moment's notice, and there are no production costs."
"But still, you've raised the price by almost what it cost to produce a regular billboard," I said.
"Do you know how much one digital display costs to build?"
"Do you know what the price of gold in Namibia is?"
"What? What does that have to do with anything?… Did I mention you can change the message at a moment's notice?!" he both asked and exclaimed. His voice was at odds with itself, yet selling at full tilt. He went on: "Ok like, say your client has a breakfast special, a lunch special, and a dinner special — you can change the message to advertise each meal special!"
"What a royal pain in the ass." Change the message three times a day? I'd have to hire one person to handle just my clients' billboard messages.
"That's not a pain, that's smart," he said. "It allows you to target people anytime of the day."
The other line clicked in. It was my accountant, who also happens to be a client to whom I could never, in good conscience, recommend a digital display.
"Hey Steve, we should do one of those digital displays — we can have one message in the morning and another in the afternoon for like a thousand more dollars a month, but the good thing is, you don't have to pay for printing the vinyl sign!" His response would probably be a very hearty, "Who gives a crap?"
"I've gotta take this call," I said, "it's my gold guy in Namibia."