digital outdoor advertising: What are the pricing models for (DOOH)?

For the most part, your DOOH (digital outdoor advertising) inventory is priced on a fixed standard you can calculate based on the equipment, content etc. However, the pricing starts to vary when it comes to location. That is the main difference between the CPM impression model used in digital online advertising and the digital outdoor advertising pricing model.

The latter greatly escalates if the location where it’s displayed has a higher or lower amount of exposure. It is much like renting an apartment in the center of the city vs. one that’s on its outskirts. Meanwhile, when it comes to online advertising, the pricing is more fixed as the unpredictability of location doesn’t come into play as much.

Digital Out-Of-Home (DOOH) advertising offers a variety of pricing models that cater to different campaign objectives and budgets, providing flexibility and efficiency in reaching audiences. One common model is Cost Per Thousand Impressions (CPM), where advertisers pay based on the number of impressions their ad receives per thousand views. This model is beneficial for campaigns aiming to achieve broad visibility and can vary significantly depending on the screen’s location and popularity. Cost Per View (CPV) is another approach where costs are based on the actual number of times an ad is viewed, allowing for precise measurement of engagement and effectiveness. For those focused on the duration of their ad, Cost Per Second (CPS) offers a model where pricing is based on how long the ad is displayed, providing control over the length of exposure.

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