Advertising on Times Square

As a marketer I’ve never had the challenge of having TOO MUCH money to spend on advertising. (Instead, the marketing budgets I’ve managed at Starbucks and Whole Foods have been more svelte than obese.) But there are plenty of companies with obese enough budgets to spend millions per year placing billboards on Times Square.

Advertising Age recently ran a very interesting story on the Times Square advertising scene. A few takeaways from the article include:

The annual Times Square billboard business is estimated to be $69 million

CPMs range from $2 to $5 (prime time TV CPMs are around $20)

Times Square draws 40 million annual unique visitors (about 14% of the U.S. population)

It is estimated more than 100 million keepsake photos are taken in the area

If Times Square were an Arbitron market, it would rank #152 between Rockford, Il and Flagstaff, Az

Thai Airlines spends nearly $1 million for their sliver of billboard space

Kodak spends over $2 million yearly for their display

Target spends in upwards of $10 million per year for 23,000 sq. ft of display space

Further Reading:

The Cost of Advertising on Times Square (sub. may be req'd) | Ad Age | May 9, 2005

Chart of Times Square Advertising Prices (sub. may be req'd) | Ad Age | May 9, 2005

Comments

[christien]

I work for one of the companies that has inventory in TS. It was interesting reading an article on some of the stuff I try to sell. It reminds me of how strategic I have to be to even get heard. The CPM is really freaking high compared to other mediums. The intangibles such as TV viewership during event is the hard part to convey to buyers. I thought it would be easiest part to sell. With the increased fragmentation of TV and radio, I wonder if more companies will begin putting boards like this in their budgets.

[Joe Abraham]

Someone please tell me how much Ricoh Corporation is paying for there advertisement in times square. Thank YOu