How to Build and Staff an Outdoor Billboard Business

Knowing how to build and staff an outdoor billboard business successfully is possible with the proper business plan. There are several paths you can take so here are your options.

Financing

To begin any business financing is necessary and an outdoor billboard business is no different. Your options are dependent on how you are financially set. For those with an IRA, the borrowing from yourself is an option. This allows you to earn the interest on your loan as you pay it back.

A small business loan is an option for those of you with good credit. These are easier to get than what most expect. This path requires an in-depth business plan to be developed. This is a necessary step anyway to have a profitable business and should be done independent of where you get your financing.

The last option would be to borrow from a family member or friend. This can led to establishing a partnership and at times problems. Unless you want to have a partner, even a silent partner, this path is the most undesirable.

The amount you will need to begin with can be as little as $10,000 for the purchase of one old wooden billboard. A digital billboard can cost $100,000 to $250,000.

The Location

The right location of the first billboard is going to make or break your business. Because of that you must take your time and search all options.

Most entrepreneurs know not to set limits on themselves. Because of that do not limit the area of your search to what is close by where you live. This is a viable option, but should not be your only choice.

The easiest way to begin your search is to get in your car and look what is around. Start in your present county and work your way out over time. You should be taking notes on what you see. This should include old dilapidated billboards along with the placement of functioning ones.

Once you have the billboards location in your county then it is time to look at how viable and profitable these locations are. The way to determine this is to know the average annual daily traffic data for each billboard location. Our government publishes this information generally at the state level. For Arizona the link to this data is at ADOT.

The data this type of site provides include average daily traffic numbers, the type of vehicles that travel in this section of the road along with the average speed of the vehicles. What it does not tell you is who is in the vehicles.

The Staff

In the initial phase of operations of your new business, the staff will more than likely be just you. You initial office will most likely be your den. This will save you money in the beginning, but as your business grows so will the need to expand. Once you have revenue flowing in is the time to think about renting office space.

This is how to build and staff an outdoor billboard business and break into this lucrative business opportunity. Take your time and make wise well thought out decisions so the passive income of the billboard business will grow.

Return on Investment with Outdoor Billboards

The return on investment (ROI) with outdoor billboards with hard facts and numbers has been elusive since this business sector began. Over time advertising businesses have developed ways to track the effectiveness of their products by including items that can produce real numbers.

Promotional Codes

One of the easiest ways to track how effective an outdoor billboard advertising campaign is in attracting the public is with the use of a promotional code. This simple code can be a number or name. The key is to make it short and easy to remember.

By placing the promotional code on the billboard along with the advertisement, the response can be measured by tracking how many customers use it. The most common type of promotion offers a 10% discount on items in stock. Others might find it more advantageous to offer 0% interest on layaway items.

Landing Page

Another path to measuring how effective the advertisement is on a billboard is to create a unique landing page on the internet for the promotion. By using the promotional code or a simple keyword associated with your brand that will led customers to your unique page, the traffic numbers to the page can be counted.

Using Social Media

In the digital age social media is a huge part in the daily lives of the consumer. The use of a promotional word or number with a hash tag (#) is a way to get a measurable response.

The most popular social media sources right now include Facebook, Twitter and Instagram. The hash tag you chose will be critical into the response you will get. If you use #sale, your page will be buried and very easily could be lost. It has to be simple but unique like #10%offbeds.

Remember the people that use social media are there for their enjoyment and entertainment. They have short attention spans and like things simple. Your message has to be simple to work.

Telephone Number

Before the advent of the internet and social media advertisers used a unique telephone number as a means to track the effectiveness of an advertisement on an outdoor billboard. For those who have a target audience of the older citizens in the population, this path will produce the best results.

Items to Remember

To generate the numbers desired for any promotion, the foundation has to be laid correctly. This includes knowing your target audience and their preferences.  As stated before the older generation prefer the use of old fashioned telephones while the younger generation would use the internet and social media. Pick the correct type of promotion to fit the needs of your target audience.

You must also have the outdoor billboard in the location where your target audience frequents. Extreme examples of what not to do include advertising a surfboard in the plains or mountain states of America or it would also not be wise to place an ad for a field tractor near a beach on the coast.

Finding the return on investment with an outdoor billboard is possible once you know how to achieve it. Match the path with the target audience then look at the results.

Why Outdoor Billboard Advertisement is Important

In today’s world of digital mass media, the old standard in advertising of outdoor billboards is flourishing. Since the second half of the 19th century this type of Out-of-Home advertising has been around informing the public about a wide variety of items and notices.

Today’s Public is Highly Mobile

With the public today always being on the go, outdoor billboards are being seen by more people. While drivers of vehicles keep their eyes on the road, the passengers are staring out the windows. These are the people seeing the billboards and reading them. By catching their attention companies are making a brand name for themselves.

Cost Effective

There are many ways a company can advertise but with it is a cost. Last year a 30 second TV ad during the Superbowl cost a company $5 million. Also last year the average cost of advertising on an outdoor billboard was $2,000. The billboard ads are seen 24 hours a day 7 days a week and seen by millions of people.

With that same $5 million more than 2500 outdoor billboard ads could have been posted. With the ads being seen 24/7 for a month that time is equivalent to 2,592,000 seconds per ad seen in a 30 day month. This shows cost effectiveness.

No Ad Blocker

With online advertising, the chances are that the ads are being blocked by an app increases every day. With an ad on an outdoor billboard the only way the ad can be blocked is if there is a storm and the billboard is blown over.  Outdoor billboards help the advertiser to get their message out more often and more effectively.

Attention Span of the Public

The more and more people use to on demand items and instant gratification, the attention span has decreased.  This is another area where the advertising on outdoor billboards is advantageous. The average number of words on a billboard being only 6, the entire message can be received in less than 5 seconds.

Just as fast as the click of a mouse, the outdoor billboards are passed along the highway. This is perfect for the modern generation of tech savvy searchers.  With a short and blunt message and an eye catching image, advertising on an outdoor billboard is what is working in today’s market place. This is why the biggest companies are still using the outdoor billboards to get their messages out.

You too can join this booming business sector. All that is required is to purchase or lease just one outdoor billboard. Each billboard that is rented will provide the owner with a continuous passive income. With most rental agreements lasting at least 1 year, there is time to look around for a second and third billboard to purchase.

The leading reason the outdoor billboard advertisement is important is that the message never gets turned off or blocked. With the type of continuality, the message will reach the target audience.

Passive Income with an Outdoor Billboard Business

It is true that there is a passive income with an outdoor billboard business. This type of revenue stream is being used for retirement funds, as an investment along with second and primary revenue streams for families across America.

The reason an outdoor billboard business revenue stream is classified as passive is the way the funds are received and the amount of work required to keep it flowing. Advertisers lease out space on a billboard on average for a year at a time. To receive maximum value most pay for the entire year up front.  Many also renew the lease annually and a new check is then received by the outdoor billboard owner. There is very little interaction between the billboard owner and the business advertising other than the sending of the funds.

With this passive income it can be reinvested in the business by purchasing additional billboards as part of the expansion of your organization. This will make it possible for there to be multiple passive revenue streams coming in.  As your business grows so will the amount of revenue that is received.

What many outdoor billboard business owners really like about their business plan is once an advertiser is leasing space, there is little that has to be done to keep the revenue stream rolling in. The only real physical activity is the checking on the billboard to make sure signage is still readable and the billboard’s lights are still functioning.

The reasons the billboard might become unreadable can include the growth of vegetation that might practically cover the sign, vandalism and possibly storm damage. The first one requires the hiring of a crew to cut the vegetation down. The second two needs to be reported to the insurance company and then repairs have to be planned.

With the average monthly gross income from the outdoor billboard advertising rates across America in the neighborhood of $2,000, the profit potential is vast. That would be $20,000 a month in gross revenue for a small business owner that owns 10 billboards.

It is this revenue stream potential that is drawing in investors into the outdoor billboard business sector. What many in the public do not realize is that for more than 100 years, this passive revenue stream has been available to them.

The most active time for tasks to be completed in this business sector is in the launching of the organization. Once established very little needs to be done expect cash the checks unless you are expanding. This is what makes this type of business so attractive.

For those interested in this lucrative type of business with a continuous passive revenue stream we have developed an in-depth resource eBook to help examine the details of operating this type of business with real world examples.

This business has very little selling and large profit potential for those willing to make an investment and spend a little spare time managing it. This will make it possible for you to have passive income with an outdoor billboard business.

Getting Noticed with an Outdoor Billboard

 

Getting noticed with an outdoor billboard has reached a new height with the new largest billboard in the world hanging on the side of a hotel in Madrid. The advertisement is for the Ford Ecosport and it covers 56,672 sq feet. This area is equal to 20 tennis courts. This is an extreme example of how to attract attention and it has now become recognized as a Guinness World Record.

It is true that the Outdoor billboard business sector is over 100 years old, but it is still going strong in the highly competitive advertising markets. In that time radio, TV then the internet became options for advisers, but the outdoor billboard market is still very strong.

One thing about the outdoor billboard business sector is that nearly anyone can get a foothold in this type of advertising.  All that is required is the purchase or lease of the first billboard. With the average monthly income an outdoor billboard brings in of $2,000, this passive income is a good long term investment.

The types of people that are beginning to invest in the outdoor billboard business across the country include those that have been pulling their funds out of stocks and bonds to this more stable business atmosphere. The stability comes from the advertisers who sign leases to advertise on a billboard for a year at a time.

Another path for entering this entrepreneur business venture is to take out a small business loan. Before attempting to apply for this a business plan of just how you will achieve your profit goals has to be constructed and put on paper. This is possible with a little research and a guide like our eBook.

The best choice of billboard to invest in is all determined by its location. The best placement of the billboard will be found that has a high number of impressions on a daily basis. In rural America this is on the highways while in the urban areas the main roads especially near intersections where the traffic has to stop and be idle, if only for a minute or two.

Another determining factor into picking the right location to start your business venture is by looking at just who is advertising in the area you are interested in investing in. In most areas this is a mixture of national brands like McDonalds and Ford along with local restaurants and bars.

By looking at the ads already in place you can narrow down the target audience they are going after. By knowing this you can then locate other business in that area that will have the same target audience to advertise on your billboard. This is how your client base list will begin.

In the advertising business sector going to the extreme like what Ford did in Spain is a viable option to sell a product, but not always necessary. The way of getting noticed in the outdoor billboard advertising world is to be consistent with your message.

Outdoor Billboard Advertising Rates

 

The Outdoor Billboard advertising rates across America are dependent on several key factors associated with its location. They are all profitable, but some have higher monthly yields than others.

Population

The local population is an important factor on just what advertiser can charge when leasing a billboard. As an example in Austin Texas the population is just under 1 million. A billboard on a secondary 4 lane road is being leased for $495 per month.

In Atlanta, Georgia an outdoor billboard can be rented for $3,000. The population of the metropolitan area is just under 6 million.

In the Chicago area an outdoor billboard can be leased for a month at around $5,000. This local population is near 7.5 million people.

A billboard can be rented in New York City from $12,000 to $14,000 for a month. The population nearby is just under 17 million people.

Impressions

What type of road the outdoor billboard is placed is another factor which involves the number of impression it will receive will also affect the amount that can be charged. The billboard near Austin has just over 91,000 impressions each week. In Atlanta the weekly impressions is 5 million at the location above. In Chicago the one week number of impressions is at 10 million. In New York City the numbers of impressions for the two billboards listed above are 18 million to 50 million impressions.

The Sign

One of the factors that help in determining the profit potential of each of these sites is the cost of creating the vinyl billboard advertisement. Most graphic artists will charge between $500 and $1,000 for their services. Having the design printed up will run another $200 to $300.

With the cost of creating the sign for hanging on the billboard pretty much fixed, the only variable is the amount that can be charged for leasing the space. As seen in the numbers above the highest number of impressions are in areas with the highest populations.

For those thinking about a business venture in the outdoor billboard business sector, these factors must be consider when choosing which billboard to purchase and or lease.

When purchasing a billboard there are a few other costs associated with the business. This is the rental of the land and the cost of the annual permits for advertising.

Land Rental

The renting of the land generally follows one of two formulas. It can be 10% to 25% of the revenue brought in by the company for renting the advertising on the space. The other is a flat rate per month for rent which is dependent on the location. On most highways out of town this rent is near $500 per month.

In the outdoor billboard business the shorter the message is the easier it is to read, understand and remember. The placement of the logo of the business advertising on it should also be present on the sign.

For more in-depth information on this business sector please read our eBook.

Constantly Changing Media Landscape including Outdoor Billboards

The outdoor billboards we all see on a daily basis are just part of the media landscape that surrounds us. Like most things in the business world it is in a constant state of flux. What has been constant in the past few years is growth in the Out-of-Home advertising sector that includes outdoor billboards. The Outdoor Advertising Association of America reported a 1.2% growth in the year 2017.

In 2017 Out-of-home advertising was behind newspapers in revenue, but the gap is getting smaller. As reported on Monday of this week the New York Daily News cut its staff by 50%. This is more evidence that as the outdoor billboard business continues to grow while other forms of advertising like newspapers are shrinking.

What has changed from the past in the outdoor billboard business sector is that many of the social themes advertising on outdoor billboards are becoming news in the other forums. Two of the more recent examples of this are how a Finnish newspaper used outdoor billboards when both President Trump and President Putin visited Helsinki. The other was the Save the Horses campaign in North Carolina.

Both of those examples were seen by more people in the digital social media of the internet and in news reports than by the number of people that actually passed by the outdoor billboards. This is just how much exposure outdoor billboards are currently receiving in the world and getting their message out.

You too can join in this expansion, success and profits by investing in the outdoor billboards. This can be as easy and purchasing a lease on a billboard or buying the billboard itself. It all begins with the first investment. This process is fully explained in our eBook.

In the eBook are exactly how to begin in the outdoor billboard business and be successful. This includes the types of outdoor billboards and other forms of advertising so you can expand you business as the passive income begins to flow in.

Another very good part of the eBook is the descriptions of the paper work required for legal purposes. Not only is it explained what is required, but real life examples are presented so the investor knows what to expect in this business sector.

What many do not know is this is a type of investment similar to the stock market, but you have more control than you do with the price fluctuations of stocks and bonds. This is a positive path for accumulating wealth for retirement, a second income or as the primary source of income for your family.

With the constantly changing landscape of the outdoor business sector has been advantageous for investors for over a decade now. This form of investing has a track record of providing a constant passive income flow into the business once clients are obtained. Most leases run for a year and many of them continue their relationship with the advertisers for decades.

Investing in Outdoor Billboard Business

The investing into an outdoor billboard business is easier than most might think it is. For some they go in partners on the purchase of a billboard while other goes it alone. Either way this move will place an investor in the longest continuous advertising business sector where passive income has be continuously generated.

When thinking about outdoor billboards most get an image of the large advertisements they see on the side of the highways across America. In standard nomenclature for Out-of-Home advertising this is a bulletin billboard.

The bulletin billboard is the main source or backbone to many outdoor billboard businesses, but they are not the only source of income.  There are also advertising on public transportation and taxis along with a category called street furniture. Other branches of revenue potential for an outdoor billboard business can also include mobile advertising and guerrilla tactics.

First Billboard

The purchasing or leasing of the first bulletin billboard is the initial step into this business sector. The cost of the billboard will be determined by its type and most importantly its location. The higher the traffic numbers passing by the billboard, the more it will costs. In a rural setting a billboard can be purchased for as little as $5,000 while on Sunset Strip in California it is over $1 million.

Working with the City

What most investors do not realize is that outdoor billboard businesses must have some sort of working relationship with the local municipality. This all begins with the purchasing of permits, but can lead to advertising at bus stops on the shelters and benches or even on the busses and light rail trains.

The renting of public land as a source of income for the municipality can also be beneficial to the billboard business with the posting of posters or bulletin boards. Best of all with this type of location the business owner will never have any issues with the permit because the city is making a profit and they will want it to continue.

Mobile Advertising

A branch of advertising that is growing in popularity is the mobile ad. This makes it possible for the target audience to be reached no matter where they are located. The ad can be mounted on a truck bed, on a trailer that is towed by a truck or even a small trailer fitted to a bicycle.

This makes it possible to go to a venue like a ball park or even the beach if the target audience is located there for who desires to send them a message. Another use of this type of advertising is for sales at department stores or other types of merchants that wish to draw in a crowd.

The use of outdoor billboards effectively is accomplished by getting the attention of the public in a manner that is not insulting or disturbing so the effect will be positive. This will make your business popular with the local merchants.

By investing in an outdoor billboard business you will establish a passive revenue stream that will continue to grow as you put in more effort and resources into it.

Finnish Paper uses Outdoor Billboards to reach Presidents Trump and Putin

The use of outdoor billboards by a Finnish paper to send messages to both Presidents Putin and Trump is a unique campaign. To make sure their message was received by these two dignitaries the campaign is using 300 outdoor billboards with different messages in both English and Russian languages.

Two of the messages directed at President Trump include “Mr. President, Welcome to the land of free press” along with one that actually uses President Trumps name it in which used the words “Trump calls media enemy of the people.”

There were also messaged directed at President Putin, but Translations have not been published. The 300 billboards are paid for by Finnish paper Helsingin Sanomat.

Their messages have been placed on outdoor billboards and at bus stops on the road from the airport to the location of the summit meeting, the presidential palace. There were also some in the airport itself.

The intention of the campaign by the Finnish paper is explained in a press release by the paper’s editor-in-chief Kaius Nieme which included this quote, “raise the topic of the freedom of the press around the world.”

Other groups have joined in the campaign with their own messages including the sign reading “Trump and Putin: Stop the Crimes Against Humanity in Chechnya.” This message was posted by the Human Right Campaign and is actually on the presidential palace.  Greenpeace also posted two ads on the Kallio church with the statement “Warm Our Hearts, Not Our Planet.” Both of these postings were reported by the Huffington Post.

Just like the Save the Horse Outdoor Billboard Campaign in North Carolina, the messages in Helsinki are aimed at visitors to the area.  While the campaign to save the horses is using the billboards as a mass media outlet to the public, the campaign in Helsinki is aimed at two power world leaders on the surface, but realistically it was done so media coverage in papers, TV and radio would take notice of the protests.

No matter the reason for the posting of the messages, the use of outdoor billboards has once again proven its relevance in the modern digital world of advertising. This way to reach the public has been effective for more than 100 years and is still going strong.

It is true some of the most covered campaigns on outdoor billboards are in large metropolitan areas and the outdoor billboard business in these cities that are charging a premium for their ad space. In the smaller populated areas, the rent for such space is lower, but still a great source of continuous and passive income.

The outdoor billboard business sector is a place those that want to get a message out to the public can do so in a cost effective manner.  For those in the outdoor billboard business sector, their services will always be in need and is great second income as it is for many who make this type of investment.