A Problem Worth Solving
The billboard industry has seen increases in revenue over the last five years stemming from increases in advertising budgets by nearly all U.S. industries. This is owed to the increasingly high efficacy of these forms of ads. It has also been bolstered by growing digital advertising costs, thanks to new demand.
Despite these increases, the mobile billboard market remains small, nearly non-existent in many large U.S. markets. Primarily, this is a response to how small and inefficient the market really is. Major brands cannot incorporate this model into their marketing strategy as the segment is not large enough and coordinated enough for ad buys that produce significant results. These issues have kept the market predominantly local and fragmented to grow aggressively.
Additionally, unlike many digital advertising platforms, the sales process for mobile billboards is often long and takes many months to close. The difficulties with this process are compounded by the ever growing number of middlemen in this industry. Even when the sales process is expedited, it’s difficult for advertisers to quantify their results. Further, the production costs associated with these campaigns are extremely high, isolating the number of businesses capable of running campaigns that scale to provide tangible data and Return On Investment.
Many small and medium sized businesses are left out of the market because of this. The growing level of difficulty and costs ensure that firms cannot incorporate these benefits into their marketing plans. Even local campaigns are extremely costly and require long contracts. Because of the low cost per impression, these businesses could benefit from this technology the most but have no access to the market or to resources to help integrate Out-Of-Home with their specific marketing objectives.