Factors That Influence The Cost Of Billboards To Increase in Malaysia
In recent years, the advertising industry in Malaysia has witnessed a significant transformation, with Out-of-Home (OOH) and Digital Out-of-Home (DOOH) becoming a prominent medium for businesses to reach their target audience. As the nation advances towards 2025, it is essential to understand the implications this growth might have on the cost of billboards.
Quick Fact
According to Statista, Traditional Out-of-Home Advertising is the largest advertisement market with a total market volume of US$104.20m (MYR488.07m) in 2023. They also predicted that the Out-Of-Home (OOH) Advertising market would reach US$187.70m (MYR879.19m) by the end of this year. This indicates demand for DOOH and OOH are increasing in Malaysia.
What Are The Factors Influence The Cost Of Billboards?
Location
High-traffic areas, popular tourist spots, and prime business districts command higher prices due to increased exposure and potential reach. As the demand for billboards in these areas keeps rising, we can expect the cost of advertising in such locations to soar by 2025. Wonder how to choose an ideal billboard location?
Check out this article to find out how you choose billboard advertising locations in Malaysia.
Size of the billboard
Larger billboards offer greater visibility and attract more attention, making them more expensive. However, advancements in technology have allowed for the development of digital billboards, which offer advertisers the flexibility to display dynamic content. As digital billboards become more prevalent in Malaysia, their cost might increase due to the added advantages they provide over traditional static billboards.
Want to know more about types of outdoor advertising in Malaysia? Click here to find out more!
Visibility
Factors such as the angle at which the billboard is visible, nearby obstructions, and the speed at which traffic passes by can influence the cost. A billboard with high visibility is likely to be more expensive, as it ensures maximum exposure and impact on potential consumers. Therefore, by 2025, we can anticipate a surge in cost for billboards with better visibility. Here are some of the top routes in Klang Valley that have the highest number of foot and vehicle count.
Duration
Typically, billboards are rented on a monthly or yearly basis. However, short-term rentals for specific campaigns or events are also available. It is important to note that long-term rentals often result in lower costs compared to short-term rentals. By 2025, we can anticipate that the cost of long-term rentals will remain relatively stable, while short-term rentals may experience a slight increase due to rising demand.
Advanced Technology
Advancements in technology and the ever-evolving advertising industry are likely to have a notable impact on the cost of billboards in Malaysia by 2025. Augmented reality (AR) and virtual reality (VR) technologies are already making their way into the advertising world, such as Anamorphic Illusion in 3D Billboard Advertisements. As these technologies become more mainstream, the cost of incorporating them into billboards may contribute to a rise in prices.
But...there might be some factors lowering the cost of OOH ads
The Increase Of Media Sites
With more media sites, there is likely to be increased competition for prime billboard locations. This could lead to more creative and innovative advertising strategies as media site owners try to differentiate themselves and attract advertisers. Due to heavy competition, the cost of billboard advertising prices would go downward. Besides, the media site owners will compete for business and are more willing to negotiate on pricing to attract clients. This could make billboard advertising more accessible to a broader range of businesses.
Digital Advertising Dominant
Digital advertising, or online ads, offers a cost-effective edge in both production and distribution. The flexibility to swiftly create and adapt digital ad content makes it a quicker and more budget-friendly alternative compared to the traditional process of designing and printing billboard ads. This shift in dynamics can put Out-Of-Home (OOH) media at a pricing disadvantage. Hence, it will be no surprise if Malaysian media owners decide to lower the pricing to compete with digital ads. On the other hand, at Firstboard, we advocate for a diversified approach. We encourage advertisers to explore multiple channels for enhanced exposure. Talk with us to delve into insights on optimizing your advertising campaign, leveraging the strengths of OOH media.
Summary
The cost of billboards in Malaysia is expected to increase by 2025. Factors such as location, size, visibility, and duration will continue to influence the cost, with high-traffic areas and high-visibility billboards demanding higher prices. The rise of digital billboards and the incorporation of advanced technologies like AR and VR are likely to contribute to this increase. As businesses increasingly recognize the value billboards hold in reaching their target audience, it is crucial to plan and allocate budgets accordingly to effectively utilize this advertising medium in the Malaysian market.
Want to learn more about Out-Of-Home (OOH) advertising? Check out Firstboard home page for more information and services today!
Images Credit to: Bartush Signs, Vector Stock, Paradise Out Door, Beeyond, Freepik, OOH TODAY, Our World in Data, Searcdh Engine Journal
