Mall Advertising in 2025: Still Worth the Investment?

For brick-and-mortar businesses, the mall was always considered to be the place to be if you wanted to build a successful retail business. Footfall was consistent, and people were already there with the intention to buy, making it much easier to secure sales.

Fast forward to 2025, and this is no longer necessarily the case. The fallout and store closures as a result of the pandemic, as well as the rise of ecommerce and online marketing, has inevitably led to challenging times for physical retail as they try to find ways to draw customers back to the mall and compete.

But all is not lost for this great institution. Recent findings have shown that while shops and chains continue to feel the heat, overall footfall has remained resolute, perhaps indicating a change in the way the mall is viewed and used. And for advertisers, this is a positive sign that there is still potential for excellent returns on investment if approached strategically.

In this article, we’ll explore how the nature and purpose of the mall is changing from a pure shopping outlet to something more experiential. We’ll take a look at the current landscape for advertisers and why brands are still choosing Out-of-House (OOH) advertising as a marketing tool. And we’ll also touch upon some common mistakes to avoid in regards to mall advertising.

The Changing Face of Shopping Malls

Even in the midst of such a huge digital transformation, the chances of shopping malls disappearing completely are very small. But there is no doubt that due to technological advancements and a more fragmented society, the nature of the mall and what it offers is changing at a fast pace.

Are Malls Still Getting Foot Traffic?

Exiting the pandemic was always going to be a tough time for retail stores to navigate. While malls have the advantage of being a centralized hub for many stores and restaurants for people to visit, they still struggled to regain the levels of footfall seen pre-pandemic with a 10.2% drop-off in visitor numbers in 2024 compared to 2019.

However, 2025 seems to be showing a resurgence in numbers, particularly for open-air shopping centers. Research on these types of malls indicates a 2.7% increase in visitor numbers when compared to 2019, before the pandemic even hit.

There are a number of potential reasons for this. Open-air malls are generally more modern with fresh aesthetics that are appealing to visitors. The lingering stigma around enclosed spaces is still present in certain sectors. And many open-air malls are merging with residential and other commercial areas to create an all-in-one lifestyle location with consistent footfall.

The Seam in Dallas, TX is a great example of a modern, forward-thinking open-air mall.

How Consumer Behavior Has Evolved Post-2020s

As mentioned, the surge in online commerce was quite something, both during and after the lockdowns. In many ways it’s not surprising - millions of Americans (and people across the world) were forced to shop from inside their homes, and many found the convenience to be to their tastes, with no more unruly crowds or busy shops to deal with.

It’s not just the location of shopping that has changed dramatically in the post-pandemic world. Brand loyalty, somewhat driven by questionable AI practices from notable companies, has taken a massive hit.

According to McKinsey, 39% of consumers (particularly Gen Z and millennials) moved away from trusted brands in search of something new, suggesting that many younger shoppers lack the trust in established businesses (and how they operate) and are looking for companies that more accurately share their values.

A final major change in the way consumers shop today is to do with the personalized experience. Consumers want to be seen as individuals rather than just a number on a spreadsheet, and are seeking opportunities for tailored shopping with personal, data-driven recommendations to help them easily access what they want.

These drastic changes in behavior have forced businesses to alter their operations and adapt to new technologies in order to maintain a foothold and prevent them from being left in the past.

The Rise of Mixed-Use Spaces and Experience-Driven Retail

When malls first became popular and gained traction, they were predominantly for the purpose of retail shopping. Over time, this evolved into something that combined shopping with eating, with many restaurant chains and fast food courts handling huge numbers of customers every day.

We are now at the point where malls are changing once again. Now, they are incorporating housing, office space, and entertainment to create a holistic living experience. A recent study found that 54% of American mall redevelopments include creating housing units of some kind, doubling up as a solution to both housing shortages and the sight of empty retail spaces.

And if homeowners have a shopping mall within comfortable walking distance of their front door, they’re much more likely to engage with in-person shopping once again.

Additionally, businesses are using empty retail space to create experiences that can’t be bought from online marketplaces. The Mall of America has been leading the way in this regard since it opened in 1992, with popular customer experiences such as aquariums, escape rooms, and mini golf being common examples of experience-driven retail.

What Does Mall Advertising Look Like Today?

We’ve established that, despite a few bumpy years, both indoor and outdoor shopping malls are still excellent sites for advertisers to promote businesses, products, and services. But it’s also clear that shopping malls have evolved in a relatively short space of time.

And so to the obvious question - do traditional mall advertising methods still work today?

The answer, as in most things, is not clear cut. It is likely that certain tried-and-tested, reliable marketing techniques will never go away, such is their simplicity and effectiveness. But with the rise in AI technologies, changing consumer behaviors, and the increased interest in hybrid shopping, it is certainly the case that businesses are having to adapt the ways they advertise in order to remain successful.

Traditional Formats Still in Play

No matter who you are, or where you are, if you see a big, colorful poster or display, it will at least catch your attention regardless of what it’s advertising.

Static signs and entrance displays remain a key marketing outlet for all types of businesses. Anywhere that experiences heavy footfall, with a lot of eyes, is a prime location for such a resource. It informs the customer that your business is located within the mall, so that even if they didn’t arrive with the intention of visiting, they are now at least aware of your presence.

If you have the budget for it, then large-scale banners and hanging displays are also great at drawing the eyeline. And within your physical store, you have absolutely nothing to lose from creating window displays for everyone passing by.

As long as your promotional materials are eye-catching, concise, and value-driven, you’re likely to still see success with these traditional forms of advertising.

Digital Screens, Interactive Kiosks, and Smart Signage

As mentioned, the traditional ways of advertising are never going to fully go away. At modern, open-space malls, you’re still likely to see all of the information and flair of traditional posters. They’re just likely to be found on digital screens rather than on paper.

For mall operators, this makes a lot of sense. Digital screens are much more easy to manage (excluding power issues). It takes far less time and effort to replace a digital advert than to take down huge banners or displays. They’re also likely to be far more effective at attracting the attention of younger shoppers who have grown up around screens.

Taking this one step further are interactive kiosks and smart signage. Interactivity is a vital component to modern advertising, as it helps to form the building blocks of personalized shopping. Mall shoppers can interact with these kiosks through gamified ads, product catalogues, and brand stories.

Then, when presented with the option to register an email address, their preferences and behaviors will be translated into personalized marketing communications that can be explored from home, creating a unique omnichannel environment.

Smart signage, when connected to an external media player or via digital software, can enable businesses to showcase multiple product pages, video content, and other forms of multimedia in a revolving manner. This dynamic, versatile form of advertising is also highly effective at attracting attention.

Augmented Reality (AR) and Immersive Ad Experience in Malls

Both augmented reality and virtual reality (VR) are being used to great effect by innovative mall-based stores and businesses. And while there is overlap between the two terms, they’re slightly different in their outcomes.

Augmented reality is the process of overlaying the real-world with digital assets that are viewable through smartphones and other devices. In an advertising context, it lends itself brilliantly to things such as virtual try-ons in clothes stores.

Many brands will also create projects such as AR treasure hunts, which are hugely fun and engaging for customers who will use AR to ‘search’ for digital assets or tokens hidden around a store or mall setting, with the prize of free products or discounts often on offer.

Virtual reality replaces the real-world with one that can only be accessed through equipment such as smart glasses. It allows for fully immersive advertising, which, according to research by the Interactive Advertising Bureau, generates 70% higher recall rates than static ads.

The North Face provided a great instance of immersive advertising with their recent campaign that transported users into scenic locations, such as the French Alps and Mont Blanc, where their equipment and clothing might be most useful.

The Integration of Mobile and In-Mall Campaigns

Your smartphone is now a vital tool that mall shops and businesses can use to drive their advertising campaigns. This is largely through QR codes that help bridge the gap between mobile and in-person commerce to create a hybrid shopping experience. Customers can click on QR codes to access product demos, discounts, or previously mentioned AR campaigns.

Geofencing is another great strategy used by mall businesses. If customers have a mall app downloaded, SMS offers or app ads might get automatically triggered and sent if a customer is in the store’s vicinity, providing them with potential discounts or coupons that can be downloaded.

Why Do Brands Still Choose Mall Advertising?

While it’s true that malls are still active across the country, it’s also true that footfall is still down from pre-pandemic levels. And with the costs of advertising rising in general, it might seem prudent to question whether it’s still worth the hassle, and whether businesses can still earn a return on investment (ROI).

The answer to this question is that they most definitely can. There are still a number of valid reasons why businesses choose to engage with in-person mall advertising, despite the dramatic rise in ecommerce.

Some of the most important reasons include:

• A high-intent audience: Perhaps the biggest reason is that anyone who takes the time to visit a mall is already there to spend money. They’ll likely be much more receptive to ad campaigns and displays, making it easier to convert interest into sales.
• Brand visibility: Seeing a store in-person often triggers something in an individual, particularly if it’s a brand that they are familiar with or have an affinity for. Even if they weren’t intending on purchasing, the act of browsing a physical store is often quite satisfying in today’s online-heavy world.
• Ad proximity: Most mall stores will set up their ads directly on their storefront, or nearby via kiosks or displays. If a customer engages with an ad, they don’t have to travel far to complete the purchase, and they will receive the product or service instantly.
• Omnichannel marketing: Most stores will have both an in-person and an online presence. Being able to connect one to the other is vital for driving revenue and brand loyalty. One way businesses can achieve this is by collecting in-mall impressions (email sign-ups after purchasing, QR codes etc) and retargeting brand awareness online once the customer is back home.
• Dwell time: Most customers will have periods of time when they’re not doing much, where they don’t have much to engage with (food courts, waiting areas, escalators etc.). These are easy opportunities to create brand awareness and deeper impacts rather than through fleeting impressions while scrolling.

Mall Advertising vs. Other Ad Channels is 2025

It would be tempting to assume that, due to the world now essentially being permanently online in some capacity, online and social media advertising is completely dominant when compared to mall advertising.

It is definitely the case that social media ad spend is continuing to rise at a rapid rate. According to Statista, online ad spending is expected to reach $406 billion by 2029 with a CAGR of 10.09%. Over half of the global population has a social media presence of some kind, so the potential market reach for online advertising far outstrips what a mall advertising campaign could expect to achieve in terms of numbers.

However, in line with the recent and optimistic resurgence in footfall that malls are experiencing, there is a case that, with so much of everything taking place online, users may begin to feel a sense of digital fatigue and banner blindness. Google cost-per-click (CPC) rates are increasing year-on-year, with rises of up to 87% in some industries, with costs-per-lead also rising.

And thanks to digital saturation, this doesn’t always convert into increased click-through-rates (CTRs) and ROI.

The ideal solution seems to be somewhere in the middle, with hybrid advertisement strategies. Malls can take advantage of increased footfall and active shoppers to drive interest towards their online presence, where they can make the most of the tools and digital technologies that the online world has to offer.

How Much Does Mall Advertising Cost in 2025?

It’ll come as little surprise that, as with most things in today’s world, the cost of mall advertising is going up. Mall businesses need to carefully monitor their advertising budgets to find the sweet spot between their in-person marketing efforts and their online campaigns.

Let’s take a closer look at some of the key areas and costs involved with mall advertising.

Pricing Models & Package Options

Despite them being two separate mediums, most mall businesses will use the same types of pricing models and packages that an online retailer might opt for when promoting the business.

Some of the most common pricing models include the following:

• Monthly rates: Perhaps the most simple model, a business will pay a flat fee per month for use of a billboard or large display.
• Cost per Mille (CPM): With this model, the agency will charge your business a fee for every 1000 times your ad is displayed.
• Cost per Click: A model that is shared with online businesses thanks to out of house (OOH) digital displays and interactive kiosks. You are charged when someone clicks on your ad using one of these devices.
• Cost per View (CPV): This works in a similar manner to CPCs on digital displays but is related to video ads and when they’re viewed.
• Event sponsorship: Businesses can use one-off mall events to advertise their business through sponsorship of the event.

In terms of packages, most malls will offer tiered options depending on a business’s budget. A basic awareness package might include something like access to static posters and food court table-top ads, whereas a premium package will include things such as large atrium banners, escalator wraps, and exclusive access to digital screens or kiosks for a set amount of time.

Many mall advertisement teams will offer custom packages and discounts on bulk placements.

Cost Breakdown by Ad Type

As discussed, there are several ways that a business can use mall advertising to its advantage. However, there is a wide variety in terms of costs that all businesses need to be aware of.

What follows is an average breakdown of advertisement costs per ad type. You should keep in mind that there are a number of factors that can greatly affect these prices, including the location of the ad space within the mall (with high footfall areas commanding premium prices), the location of the mall itself (expensive cities for higher prices), and seasonality.

Hidden Costs & Negotiation Tips

The above table represents the flat fees that businesses will often have to pay to get their advertisements in place. However, what isn’t always apparent are the additional costs that are sometimes overlooked, or not made immediately clear. And there are several that can become quite an expense if allowed to accumulate.

For example, many agencies will charge additional installation costs, particularly for the larger-scale displays across elevator areas and atriums. There are also production and printing costs that businesses will have to factor in for their static posters and displays, as well as tech fees for digital services.

You should also be aware of intentional mark-ups on pricing during seasonal hotspots, or for certain exclusivity for advertisement in certain industries.

Fortunately, there are certain tactics that you can look to apply to drive down costs wherever possible. Some of these negotiation tips include:

• Introducing a pilot campaign to gauge expected ROI
• Committing to longer durations to decrease average cost over time
• Leveraging off-peak seasons
• Requesting package deals rather than individual outlets
• Using external parties for production costs rather than in-house mall production
• Gaining discounts via network/bulk advertisements across multiple malls

Who Should Invest in Mall Advertising?

There is no hard and fast rule as to who should invest in mall advertising. Any business, no matter the size or sector, can benefit from it if approached correctly.

It is certainly true that retail stores with large scale competitors in online commerce might struggle to bring in the necessary footfall. But clothing and cosmetics stores are still likely to see success, as many customers still want to try before they buy rather than relying on online descriptions and sizes.

With malls now much more of a social environment rather than a pure shopping experience, bars and restaurants are always likely to benefit from mall advertising, particularly if they are independent and can offer something unique. This also applies to experiential and entertainment services.

And mall advertising isn’t always exclusive to just the stores and retailers within the mall. Many will be happy to advertise for local businesses who wish to try and generate extra business.

Common Mistakes to Avoid in Mall Advertising

We’ve touched upon a couple of the most common mistakes that businesses can make with mall advertising, such as overlooking hidden fees and failing to negotiate for favorable packages. However, there are several other pitfalls that mall businesses can fall foul of if not careful, including:

• Using overly-long copy: A mall visitor is there to shop, not consume complex messaging. They must understand the value of the ad instantly if you want it to generate a good ROI.
• Poor ad placement: Put simply, if your ads are in places where no one visits, then they’re going to be a waste of money. Do your research on the mall landscape to gain insights into areas of heavy footfall.
• Overlooking key outcome metrics: By this, we mean that many companies don’t invest the time in analytics programs to see whether their ads are making a tangible difference to their bottom line. Without this, they have no idea if the investments are worth it.
• Ignoring omnichannel integration: A static ad, no matter how well-designed, is less than optimal if it doesn’t open up the pathway to continued digital advertising geared towards the customer once they’ve left the mall.
• No seasonal alignment: Back to school periods, holiday events and increased summer footfall are all vital windows for malls in general. Businesses must make the most of this increased footfall through discounts and event campaigns.

Final Thoughts

The mall is an American institution. And the fact that it is starting to finally show resurgence after years reeling from the post-pandemic fallout should be something that everyone is happy to see. Not only is it a vital place for socializing and entertainment, but it remains a key in-person location for businesses to generate much-needed revenue.

And while advertising in malls isn’t as straightforward as it once was, with rising costs and the balancing act between online and physical commerce to deal with, businesses who make the most of this advertising avenue can still see huge levels of attention and impressive returns on investment.

At Influize, we have been offering full-service digital marketing services for over 20 years. We understand marketing and outdoor advertising as well as anyone around, with experience in everything from brand strategy development to social media marketing.

If you’re ready to take your business’s digital infrastructure to the next level, then do not hesitate to contact us and one of our expert team members will be in touch.