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Value of Advertising


Photo
Vehicle wraps involve the design, production, and application of graphics to the exterior of a vehicle in order to advertise a business or brand. Because mobile advertising with vehicle wraps takes advantage of a captive “out-of-home” audience, its popularity is on the rise.

Vehicle wraps are similar to standard billboards but create additional value by moving the advertised message to where new people and potential customers can see it. Of course, the true value is that you are advertising your business as you conduct normal business operations, picking-up and making deliveries, transporting goods, attending events, etc.

Many people consider vehicle wraps a highly effective advertising medium due to the vast number of potential impressions that can be made as the wrapped vehicle travels the road in view of thousands of people each day. Also, with the average life span of a vehicle wrap estimated at around five years, the cost per month can average out to as little as $50 or less. Your vehicle is also protected by this wrap and therefore preserves its resale value.

The estimated advertising value of a vehicle wrap has been calculated at an average of $1,400 per month. When you consider the fact that a standard lease on a Series 8 with accessories is around $950, you may actually generate positive cash flow from your investment.


Media comparisons

The value of advertising is usually based on the cost per thousand impressions (CPM), the key question always being how much are you paying to sell your products.

The Outdoor Advertising Association of America has evaluated the costs as follows, if one were to purchase truck advertising.

 Media                                                                     CPM Rates
-Wrap-around ad rate                                                $1.82
-Super side ad (driver's side)                                      $2.16
-Taillight ad rates                                                        $2.20

As compared to other media 

-Direct mail rates                                                      $530.00
-Magazine rates                                                          $27.00 
-TV rates (30 seconds)                                                $19.00
-Static billboard rates                                                 $16.77
-Radio rates (30 seconds)                                             $3.47
-Bus rates (king-size ad)                                                $3.00

**Note** Truck rates are based on a four-month display.


Mobile advertising facts

Mobile billboards boost name recognition 15 times more than any other form of advertising. (European Outdoor Advertising Association)

One vehicle wrap can generate between 30,000 – 70,000 impressions daily. (Outdoor Advertising Association)

94% of respondents recalled mobile billboards. Of these respondents, 80% had recall of specific ads. (Product Acceptance and Research, Inc.)

Mobile billboards resulted in an increase in sales of 107% versus a 54% increase for static billboards. (Product Acceptance and Research, Inc.)

96% of respondents said mobile outdoor advertisements are more effective than traditional advertisements. (Outdoor Advertising Magazine)

Mobile billboards generate 2½ times more attention than a static billboard. (Perception Research Services)

Car wraps and television ads were viewed as the two most memorable media. (Cox Communications/Eagle Research)

The average person spends 32 hours a month driving. 
(Canadian Vehicle Survey 2004)

Approximately 80% of all consumers are out of the home during the majority of the day from 9 a.m. to 3 p.m. (Simmons 2002 Fall Study)

About 62% of a consumer’s time away from the house (and not at work or school) is spent getting places. (Outdoor Advertising Association of America)

Whether targeted to pedestrians or vehicle passengers, outdoor media have the power to reach mobile consumers, particularly by reaching consumers who receive less exposure from traditional channels such as print and/or broadcast. (Arbitron Corporation)

Mobile advertising can be the most effective and efficient form of outdoor advertising, reaching more consumers at a lower cost per thousand impressions (CPM) than any other form of outdoor advertising. (Outdoor Advertising Association of America)

Fleet vehicle wraps are ideally suited for various types of advertising campaigns, including new product launches and event marketing, and are increasingly being used as part of the marketing mix. (Outdoor Advertising Association)

Transit advertising has grown to be the second largest segment of the outdoor advertising industry in terms of dollars spent (as of 2003), representing 19%. The outdoor advertising industry nearly doubled between 1993 and 2003, and the numbers continue to grow each year. (Outdoor Advertising Association)

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