Answer to Question 1
Strengths of billboard advertising:
1 . Broad reach and high frequency levels. Billboards are effective in reaching virtually all segments of the population. The number of exposures is especially high when signs are strategically located in heavy traffic areas.
2 . Geographic flexibility. Outdoor advertising can be strategically positioned to supplement other advertising efforts in select geographic areas where advertising support is most needed.
3 . Low cost per thousand. It is estimated that CPMs for 8- and 30-sheet poster panels are 0.85 and 1.78, respectively, making it the least expensive advertising medium on a CPM basis.
4 . Brand identification is substantial. The ability to use large representations offers marketers excellent opportunities for brand and package identification.
5 . Last reminder before purchasing.
Limitations of billboard advertising:
1 . Nonselectivity. Outdoor advertising can be geared to general groups of consumers (i.e., inner-city residents) but cannot pinpoint specific market segments (i.e., professional African American men between the ages of 25 and 39).
2 . Short exposure time. Now you see it, now you don't appropriately characterizes the fashion in which outdoor advertising engages the consumers' attention.
3 . Environmental concerns. Billboards, the so-called litter on a stick, have been banned in some manner by several U.S. states and hundreds of local governments.
Recommendations as to which types of products and situations in which outdoor advertising should be used include using it for frequently purchased products (e.g., beer) and local businesses (e.g., restaurants).
Answer to Question 2
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Advertising Break-even Question
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