What is Out-of-Home CPM (OOH CPM)?
OOH CPM is "Out-of-Home Cost Per Mille," calculating outdoor advertising cost per thousand impressions. OOH encompasses outdoor advertising media including large billboards, bus ads, subway lightboxes, roadside ads. By calculating OOH CPM, you can evaluate physical advertising cost-effectiveness and compare with digital ads (Facebook, Google) CPM to find optimal media mix.
OOH CPM Calculation Formula
1. Calculate Total Impressions
Total Impressions = Daily Traffic × Display Days × Effective Exposure Rate
Example: Daily traffic 50,000, display 30 days, effective exposure rate 30% Total Impressions = 50,000 × 30 × 0.3 = 450,000 times
2. Calculate CPM
CPM = (Billboard Cost ÷ Total Impressions) × 1,000
Example: Billboard cost $100,000, total impressions 450,000 CPM = (100,000 ÷ 450,000) × 1,000 = $222.22
3. Effective Exposure Rate Explanation
Effective Exposure Rate = Proportion who actually notice the ad
Example: 100 people pass by, ~30 actually see ad, effective exposure rate = 30% Different locations have vastly different rates: main roads ~30-50%, alleys ~10-20%
Why Calculate OOH CPM?
Understanding OOH CPM is critical for outdoor advertising investment decisions. Through CPM calculation, you can:
- Evaluate Investment Effectiveness:Compare CPM across billboard locations, select best cost-performance positions
- Cross-Media Comparison:Compare OOH CPM with digital ad CPM, optimize media budget allocation
- Negotiation Basis:Based on traffic and CPM data, negotiate with billboard vendors
- Budget Planning:Based on budget and target impressions, plan appropriate billboard quantity and periods
- Effectiveness Tracking:Regularly calculate CPM, evaluate effectiveness changes across periods and locations
- Long-term Brand Building:Outdoor advertising suits long-term exposure, continuously building brand awareness
OOH CPM Application Scenarios
OOH CPM calculator widely applies to these scenarios:
- Outdoor Large Billboards:Large billboard investment evaluation alongside highways, urban main roads
- Bus Advertising:Bus body, interior ad CPM calculation and route selection
- Subway Advertising:Subway station lightboxes, platform ads, carriage ads effectiveness evaluation
- Election Billboards:Campaign period outdoor billboard position selection and budget allocation
- Roadside Banners:Streetlight banners, park banners outdoor promotion cost-benefit analysis
- Subway Lightboxes:Calculate subway station lightbox ad CPM and exposure effectiveness
- Bus Body Ads:Evaluate bus body ad mobile exposure cost
OOH CPM Related Terms
- OOH (Out-of-Home)
- General term for outdoor advertising media, including all advertising outside home like billboards, buses, subways, elevators.
- DEC (Daily Effective Circulation)
- Daily effective circulation, number of people passing and potentially seeing the ad daily.
- Reach
- Number of unique individuals ad contacts. Versus impressions (can be repeated), reach emphasizes unique count.
- Frequency
- Average times each person sees ad, calculated as: total impressions ÷ reach.
- GRP (Gross Rating Points)
- Total rating points, OOH industry also uses this metric to measure advertising intensity.
- Effective Exposure Rate
- Proportion who actually notice ad among total traffic. Outdoor advertising effective rate generally 30-50%.
Frequently Asked Questions
Q: What is reasonable outdoor billboard CPM?
A: OOH CPM varies by location, city, type. Generally, Taipei main road billboard CPM ~$100-300, highway billboards ~$50-150, subway lightboxes ~$200-500. Compared to digital advertising (Facebook CPM ~$150-300), OOH CPM may be lower but audience precision also lower.
Q: What should effective exposure rate be set to?
A: Effective exposure rate varies by location and sight conditions. General recommendations: main road large billboards 30-50%, alley small billboards 10-20%, subway station lightboxes 40-60% (due to waiting time). Recommend requesting field survey data from media vendor or observe and adjust yourself.
Q: How to obtain daily traffic data?
A: Traffic data obtainable through: (1) Request from billboard vendor (usually provides MOTC or own survey data) (2) Check MOTC Directorate General of Highways traffic statistics (3) Use Google Maps popular times data reference (4) Conduct own field observation counting (recommend different times, different days).
Q: Are this calculator's results accurate?
A: This calculator uses standard OOH CPM formulas, calculation logic is accurate. However actual impressions affected by weather, sight obstructions, ad design attractiveness. Recommend using calculation results as baseline reference, combine with actual effectiveness tracking (brand search volume, store visits, website traffic) for comprehensive evaluation. Additionally, OOH advertising effectiveness often accumulates long-term, unlike digital ads with immediate conversion tracking.