Why is Signage More Efficient than other local media?

Why should your client invest in signage instead of other media?

The answer is simple. Your client should choose signage because it is a more efficient form of advertising compared to some other local media. But all of the media salespeople say that, right?

Here is how to strengthen your signage argument. You may be familiar with the CPM calculation, which is the cost per 1000 advertising impressions. This metric is frequently used by media salespeople – including representatives from television, radio and billboards. It is an important measurement that can help you sell more signs. Here is how to use it.

First, review this table (we’ll walk through a calculation shortly.) It shows the cost for 1000 advertising impressions in different media.

Cost Per 1000 Consumer Exposures Estimate

	Television	Newspaper	Billboard	On-Premise Sign
Exposure	40,000 Households	Circulation of 40,000 locations	333,350 Cars Per Day	30,000 cars per day
Consumer Exposures over a 30 day Period	1.2 million (40,000 * 30 days)	4.75 million (40,000 * 4 * 30 days – assumes 4 readers per paper)	10 million	900,000
Consumer Exposures in Thousands	1200	4800	10,000	900
Cost Per Month	$16,500	$16,500	$16,500	$115
Formula	Media Cost/Consumer Exposures	Media Cost/Consumer Exposures	Media Cost/Consumer Exposures	Media Cost/Consumer Exposures
Calculation	$16,500/1200	$16,500/4800	$16,500/10,000	$115/900
Cost Per 1000 Exposures (CPM)	$13.75	$3.44	$1.65	$.13

Here is how to use this in your proposal. You’ll need to show your prospect the specific traffic figures for their business location. This information is usually free from your state or city department of transportation. You can then plug in your customer’s number to the table above.

Here is an example. We are located in Denver, and here is the site for traffic counts on Colorado state roads:

http://www.dot.state.co.us/App_DTD_DataAccess/Traffic/index.cfm?fuseaction=TrafficMain&MenuType=Traffic

And here is our corresponding City of Denver site for city street traffic counts:

http://www.denvergov.org/Applications/TrafficCount/tabid/435015/Default.aspx

Your area probably has the same data available. If the city and/or state does not provide that information, then check with a local billboard company.

Then do your own comparison. Remember that this example assumes your sign will last 12 years (144 months).

Here is how to calculate a signage CPM (cost per thousand impressions):

1. Calculate the total proposed price of your sign, including permits and installation.

2. Estimate the length of the sign’s usable life in months. The chart example uses 144 months, or 12 years.

3. Calculate the sign’s monthly cost by taking the total sign price (#1) and divide it by the sign’s usable life span in months.

4. Then, find out your client location’s daily auto traffic volume.

5. Multiply the number of cars per day (#4) by 30 to obtain a monthly traffic estimate.

6. Divide the answer in #5 by 1000. That gives you the monthly signage consumer impressions in thousands.

7. Divide your monthly signage cost (#3) by the CPM (#6) to come up with the signage cost per 1000 impressions.

Then look at your client’s cost per 1000 impressions through signage – and compare that number to the cost in the other media.

Compelling sales argument for signage, isn’t it? Use it to help close your next signage proposal.