If you’ve ever looked at a marketing report and wondered, “Is my billboard campaign making money?”—you’re not alone.
Billboard advertising is a powerful tool, but one of the biggest challenges for marketing managers and business owners is measuring advertising effectiveness and proving that those large-format ads are worth the investment.
Unlike digital ad campaigns, where clicks and conversions are easily trackable, billboards require a more strategic approach to analyze their advertising return on investment (ROI).
This guide will show you exactly how to calculate billboard ROI, break down the key metrics, and provide real-world formulas so you can confidently measure your billboard ad performance. By the end, you’ll know if your campaign is a smashing success—or if it’s time to tweak your strategy.
Why Calculating Billboard Advertising ROI Matters
You wouldn’t invest in a marketing strategy without knowing the return, right? Whether you’re working with a tight budget or looking to maximize an already successful campaign, understanding the ROI of billboard advertising is crucial for:
✔ Justifying ad spend to stakeholders
✔ Comparing billboard performance with other marketing channels
✔ Refining your messaging for future campaigns|
✔ Optimizing ad placement for higher impact
But here’s the challenge: Unlike online ads that track direct conversions, billboards influence consumer behavior in ways that aren’t always immediately visible. However, with the right approach, you can still quantify your results and make data-driven decisions.
The Formula for Billboard Advertising ROI
To measure the advertising return on investment (ROI) from your billboard campaigns, use this simple formula:
ROI (%) = [(Revenue Generated – Advertising Cost) ÷ Advertising Cost] × 100
Let’s break this down with a real-world example.
Example: Small Business Billboard Campaign
A local auto repair shop invests $5,000 in a four-week billboard campaign. After the campaign runs, they see a 20% increase in walk-in customers, leading to an additional $15,000 in revenue.
Plugging the numbers into our formula:
ROI (%) = [($15,000 – $5,000) ÷ $5,000] × 100
ROI (%) = (10,000 ÷ 5,000) × 100 = 200%
A 200% ROI means the billboard generated twice the amount spent on it—an excellent return!
Key Metrics to Consider for Billboard Ad Performance
Calculating ROI isn’t just about revenue—it’s about understanding the factors that contribute to your success. Here are some critical metrics to track:
1. Impressions (Viewership Numbers)
This refers to the estimated number of people who see your billboard daily. Traffic count data, often provided by the billboard company, gives insight into potential exposure. You can find all 30+ Penneco Billboard locations, along with daily traffic count, on our website.
💡 Pro Tip: If 50,000 cars pass your billboard daily and the average vehicle carries 1.5 passengers, that’s 75,000 impressions per day or 2.25 million impressions per month!
2. Customer Conversion Rate
How many people who saw your billboard actually became customers? While you won’t have exact figures, you can track changes in foot traffic, calls, or website visits that align with your billboard’s timeframe.
- Ask new customers how they heard about you
- Use unique promo codes or dedicated phone numbers
- Track direct visits to a landing page mentioned on the billboard
3. Cost Per Thousand Impressions (CPM)
A useful way to compare billboard costs with other forms of advertising is CPM:
CPM = (Total Cost of Billboard ÷ Total Impressions) × 1,000
Example: If your billboard costs $5,000 per month and generates 2.25 million impressions, your CPM is:
CPM = (5,000 ÷ 2,250,000) × 1,000 = $2.22 per 1,000 impressions
Compare that to digital ads, where CPM often ranges from $5–$10—billboards offer incredible exposure at a lower cost.
4. Website Traffic & Online Engagement
Billboards are not only great for driving brand awareness long term but also for encouraging potential customers to search for your business online.
To track the impact of your billboard on digital engagement, monitor key metrics such as increases in website visits during the campaign, a rise in Google searches for your business name, and a boost in social media engagement.
Using tools like Google Analytics can help you track referral traffic spikes, making it easier to see the direct effect your billboard is having on online activity.
5. Phone Call & Foot Traffic Tracking
Want to track direct leads? Try:
- Using a unique phone number on your billboard
- Setting up a landing page URL exclusive to the campaign
- Offering a billboard-specific discount code
These tactics make it easier to link sales back to your billboard.
Real-World Example: Restaurant Billboard Success
A family-owned pizzeria runs a $7,500 billboard campaign for three months. They use a QR code on the billboard that directs customers to a special online deal.
📌 Campaign Results:
✔ 40,000 scans of the QR code
✔ 15% of those scans (6,000) turn into online orders
✔ The average order value is $25
✔ Total revenue generated: $150,000
Now, let’s calculate their billboard advertising ROI:
ROI (%) = [($150,000 – $7,500) ÷ $7,500] × 100
ROI (%) = (142,500 ÷ 7,500) × 100 = 1,900%
Yes, that’s a 1,900% ROI!
Common Billboard ROI Mistakes & How to Avoid Them
There are a few common mistakes businesses make when calculating billboard ROI that can lead to inaccurate results.
First, not setting clear goals is a major issue—it’s important to define what success looks like for your campaign, whether it’s brand awareness, increased store visits, or higher sales.
Another mistake is skipping unique tracking methods. Without tools like QR codes, promo numbers, or website tracking, it becomes much harder to prove the effectiveness of your billboard.
Lastly, ignoring the impact of location is a mistake. A billboard placed in a high-traffic area with your ideal audience will naturally result in a higher ROI, so location should always be a key consideration in your strategy.
Ready to Boost Your Billboard Advertising ROI?
You now have the formulas, metrics, and advertising strategies to calculate billboard ROI and prove the effectiveness of your marketing campaigns. But why stop at theory when you can put this into action?
Partner with Penneco Outdoor Advertising today! We’ll help you maximize billboard ad performance, target the right audience, and ensure your campaign delivers real results.
Call us now to book the best locations! Or visit PennecoOutdoor.com to get started.
Spots are filling fast—don’t miss your chance to claim the billboard that will take your business to the next level!