When people think about what makes a billboard valuable, they often zero in on one thing: how many drivers pass by it each day. While that’s certainly a factor, it’s far from the whole picture. In fact, some of the highest billboard rates in the country are tied to signs that don’t sit on major highways at all.
Yes, Traffic Volume Does Matter
There’s no denying that more eyes generally mean more interest. A sign placed along a busy interstate with 100,000 or more daily vehicles offers broad visibility, which is attractive to advertisers with products aimed at the general public. Most outdoor advertising companies won’t even consider placing a sign where traffic falls below 5,000 cars per day. But volume alone doesn’t tell the full story.
Who’s Looking Counts Just As Much
Some roads don’t carry massive traffic, but the people who do drive by are highly influential. Take Hollywood Boulevard in Los Angeles. It doesn’t compete with major freeways in terms of daily drivers, yet billboards there often rent for upwards of $50,000 per month. Why? Because the street cuts right through the heart of the entertainment industry. Executives, directors, producers, and media decision-makers use that road daily. A sign seen by that audience can directly affect voting behavior for awards shows and have an outsized impact on revenue for movies and shows. That level of influence translates into real value.
Limited Availability Drives Prices Higher
In some cases, what sets a billboard apart isn’t just who sees it—but how few alternatives exist. Scarcity plays a major role. One well-known example is a small sign located on the only access road into La Jolla, California. There’s just one billboard that reaches incoming traffic—and it never sits empty. Advertisers often wait months or even years for their turn. With no competition, the price stays high and the demand steady.
The Bottom Line
When evaluating the worth of a billboard, it’s easy to get caught up in daily traffic stats. But real value comes from a mix of factors: how many people see it, who those people are, and how difficult it is to replicate that visibility elsewhere. Understanding this blend is key to making smart billboard investments in today’s market.