The cost of the latest billboard campaign is starting to mount up, with a new study showing that advertisers are paying $1,800 for every billboard they put up on the internet.
This is even after a year-long price increase for advertising on Facebook and Google’s ad networks.
The research, by the firm Nielsen, found that consumers were paying $8,500 for each billboard, with Facebook, Google, and Twitter paying more than $1 million.
The digital billboard campaign of American Apparel, the biggest brand in the apparel industry, went viral on Instagram, generating nearly half a million posts, according to a statement from the company.
According to Nielsen, ads for American Apples online store and the app for its retail stores had been running for over a year, and the cost of advertising on those platforms is rising every year.
“Our study shows that the cost for advertising in the past year on Facebook, Instagram, and other platforms has increased by more than 80% compared to the previous year,” said Michael Tofel, a Nielsen media analyst.
“This is just one of many factors that have made it difficult for advertisers to compete for a new audience, and as such, we expect to see an increase in the costs of advertising in 2016 as we begin the long process of rebuilding the ad marketplace,” he added.
The study did not look at whether advertising on the mobile platforms was being subsidized by the government or by companies, but rather what advertising costs would have to be to make up for the difference in advertising costs.
The number of advertisers that had to be in the US to get paid for the digital billboard was a staggering $2.2 billion in 2016.
It was the third-highest year on record.
While the cost increases were not expected to last for much longer, the new study comes as social media giants Facebook and Twitter have struggled to attract new users and get their ad networks online.
Facebook recently raised its ad price by a third to $10.25 per share.
The company’s chief executive Mark Zuckerberg said last month that the ad price increase was “just a little bit of a mistake” that was “a little bit unfair.”
“We will continue to build out the advertising ecosystem, but there is no longer a place for that,” he said.
“And it is going to continue to drive down our margins.”