The 3-Tier Pricing Strategy That Increases Billboard Revenue

A client calls: "How much for Billboard #145?"

If you only have one price, you say "$3,000."

If you have three prices, you say: "It depends. Are you looking at a 4-week campaign, 6-week, or 13-week?"

That simple question unlocks a pricing psychology principle that can increase your per-board revenue by 15-25%.

Why Single-Price Billboards Leave Money on the Table

Most OOH operators price billboards with one flat rate. You're missing two opportunities:

Opportunity 1: Premium Short-Term Pricing

Clients who book short-term (4 weeks) often have urgent needs, higher budgets, and less price sensitivity. You could charge them more for flexibility and urgency.

Opportunity 2: Incentivized Long-Term Commitments

Clients who book long-term (13+ weeks) want bulk discounts and predictable costs. You could offer them a discount to secure that long-term revenue.

Result: You're pricing everyone the same, regardless of commitment level.

The AdGrid Solution: 3-Tier Pricing

AdGrid allows you to set three distinct prices for every billboard:

1. 4-Week Rate: Premium, short-term pricing
2. 6-Week Rate: Mid-term, slight discount
3. 13-Week Rate: Long-term, significant discount

Example Billboard #145:

• 4-week rate: $3,000 (premium)
• 6-week rate: $2,850 (5% discount)
• 13-week rate: $2,600 (13% discount)

The Psychology: Anchoring & Volume Discounts

By showing the 4-week rate first ($3,000), you establish that as the "standard" price. When you then show the 13-week rate ($2,600), it feels like a deal—even though $2,600 is still profitable for you.

Clients expect discounts for bulk purchases. With tiered pricing, the discount structure is pre-defined and consistent. You're not negotiating; you're offering a menu.

Real-World Impact: Revenue Comparison

Single-Price Model:

• Price: $2,800 per 4 weeks (flat)
• Client books 8 weeks: $5,600

3-Tier Model (client upsold to 13 weeks):

• 13-week campaign: $2,500 × 3.25 months = $8,125
• Additional revenue: $2,525 (45% more)

Even if they stick with 8 weeks:

• 6-week + 4-week: $6,050 (8% more than single-price)

Conclusion

Single-price billboards are leaving money on the table. Tiered pricing gives you:

1. Higher revenue from short-term clients (who pay premium rates)
2. Longer commitments from cost-conscious clients (who take the 13-week discount)
3. More predictable cash flow (because more clients lock in long-term)

It's not about charging more. It's about charging appropriately based on commitment level.