Wednesday, July 26, 2017

Advertising in Times Square

Have you ever wondered what it would cost to buy billboard space in Times Square? The enormous tower sitting where Seventh Avenue and Broadway meet is the perfect place to advertise in not only New York City, but also in the U.S. The owners of 1 Times Square pull in $23 million per year from the building’s advertising billboards, making them the costliest billboards on Earth. Let’s look at the details of advertising in Times Square.

 

Times Square Advertising: Supply and Demand

 

Although it might come as a shock, the Times Square advertising inventory often operates at less than half of its capacity. Anyone who does a little digging will find out that the supply of Times Square space that can be used for marketing purposes has significantly outpaced the demand. This statement has rung especially true over the past few years, as additional signage opportunities have presented themselves in masses throughout Times Square. This means that there are advertising bargains to be had. It also means that companies are empowered to negotiate fair prices for optimal ad space.

 

The Cost of a Times Square Advertisement

 

Street sign on the corner of Times Square, New York

The Wall Street Journal reports that a neon billboard in Times Square will cost a business $1.1 million to $4 million per year. Yet this isn’t that hefty of a price compared to something like a Super Bowl commercial that typically runs upwards of $4 million dollars for a 30-second spot. In comparison, advertising in Times Square is not only more affordable, but it also catches the eyes of more people. Advertisers can also opt to purchase advertising space in Times Square for a couple hundred thousand dollars per month. There are 11 prominent spaces between 1 Times Square and 2 Times Square that typically run between $200,000 and $350,00 a month.

 

Reaching Target Audiences

 

Times Square advertisements don’t just target people on Broadway and Seventh Avenue. These advertisements are also seen on television numerous times per year. This is exactly why big-time advertisers like Dunkin Donuts, Toshiba and Sony have set up signs at the location. Aside from in person viewership, they are looking to have their brand name featured on all the major television networks during New Year’s Eve celebrations as well as other television programming.

 

Another key consideration is the fact that most of the Times Square advertisement buys are not short term ventures. Companies who advertise here typically do so for the long term. Companies typically choose 10-year advertising deals because they are more cost effective. Short term deals cost more per day of advertising, as the security of a long-term commitment is not in place. Yet there are movie studios that choose short-term Times Square advertising stints to market their programming.

 

Is a Times Square Advertisement Worth the Cost?

 

One must wonder if advertising in Times Square is an affordable and prudent use of a company’s marketing budget. The answer is a resounding “yes”. Consider that a TV commercial costs advertisers around $20 for every 1,000 viewers during prime-time programming. In comparison, an advertisement in Times Square costs between $2 and $5 for every 1,000 viewers. Relatively speaking, advertising in Times Square is much more cost effective.