Locational Advantages

The locational advantage of many billboards is so profound that there is simply no other available substitute. Taylor (1997) found that information on availability/location is the most commonly communicated information cue on a billboard. Billboards communicating availability information most frequently provide directions to a place of business and for many retail businesses, contribute to tangible response in the form of a consumer visit to the place of business. Thus, it is not surprising that a large group of billboard users surveyed by Taylor and Franke (2003) rated billboards substantially higher (5.14) on the “ability to increase sales” than other media (local television was second, at 3.96 on a 7 point scale, followed by radio at 3.68). Additionally, in the same survey, when asked if other specific media served as a substitute for billboards, the billboard users rated all other media below the midpoint of the seven point scale.

There is sound theory behind the idea that billboard locations in close proximity to a retail or service business can provide an advantage to the advertiser. Dating back to Reilly’s law of retail gravitation, gravity models have established that in the absence of a known major advantage of an alternative, consumers will prefer to travel less distance to shop (Reilly 1931; Huff 1964; Bell et al. 1998). As gravity models suggest a natural preference to travel less distance and shop at nearby places, it follows that billboards that point a consumer to a nearby location will have a stronger influence on store traffic and sales.

It is well documented that most retail businesses draw a high proportion of their customers from a limited geographic area (“trade area”). The ability of billboards to provide high reach and frequency in a geographically confined area can allow for excellent coverage of a target audience in a local trade area.

As has been noted by Ephron (1997), advertising works by influencing those who are ready to buy. As a result, Ephron recommends “recency planning,” which suggests that consumers should be reached at the time and place when they are ready to buy. As noted by Ephron (1997, p.61), “consumers control messages by screening out most and selecting only a few that are relevant at the time. The new model accepts the relevance that what makes ads work is provided by what is happening in the consumer’s life and seldom by the advertising.” Billboards are particularly effective to many businesses in exposing consumers to the message at the right time and place, as they are often positioned in close proximity to the place of business and being less likely to be screened out via selective perception processes. Moreover, recent research by Allaway et al. (2003) supports the notion that putting billboards in close location to a store can enhance gravity effects.

Billboards in locations in close proximity to a place of business can provide exceptional value even if the creative strategy used in the would not score high on the “noticeability” scale as proposed by Ephron. This is especially true of billboards for many types of retail and service businesses (e.g., retail stores, restaurants, gas stations, auto dealerships) and tourism related businesses (tourist attractions, hotels, campgrounds). Thus, as with visibility and frequency advantages, the geographic advantage provided by many billboards suggests that the value of these exposures should not be discounted.