The Billboard business is surely a profitable one if it is started after conducting thorough research (also known as ‘due diligence’) and has been marketed cleverly. Billboards are considered an important segment of the advertising industry with most companies opting for billboard advertising at some point in time. Locations with high-traffic counts and excellent street visibility are the best areas for placing the billboards.
How Does the Billboard Business Work?
If you plan to own a billboard, you’ll need to know that an effective billboard business starts with the selection of location for the placement of the billboards. This can be on land or on a building that has excellent visibility and a large amount of frequent traffic. Yearly fees are paid to the owner of the land or building selected for the placement of billboards. This fee is based on a certain percentage, which is predetermined between the advertising agency and the land or building owner. It is often based on the expected revenues that the billboard would generate. Companies that wish to have their ads advertised on the billboards need to pay a one-time fee to the advertising agency for the creation of the ad, and an additional amount for the ad to be featured on the billboard for a specific period. Therefore, the business is profitable for not only the land or building owner, but also for the advertising agency that creates and features the ad.
Are Billboard Ads Really Effective?
One may come across hundreds of billboard ads while commuting from one’s home to office or from one city to another. Billboard advertising has been in vogue for many years, and there are several examples of people and companies that have become billionaires through this business. This makes it evident that this can be a lucrative for the right business. It has been seen that properly placed billboard ads can have an impact in the minds of potential customers. The name of the product or company advertised on the billboards can become etched into the minds of people as they pass by these signboards regularly. When they wish to purchase a similar product, they may recall the ad placed on the billboard, which is a known way that billboard ads are effective in increasing sales.
Comparison Between Billboard Ads and Online Ads
One might argue that because this is the age of the Internet where every second, millions of people are logged into the Web, are billboards still really effective? Especially when compared to online advertising. This is a question that is quite common for those people who may be relying on the viability of the billboard business. However, despite the penetration and popularity of the Internet, billboard advertising has its own importance, and is here to stay. The reason for this is that, despite the high penetration and popularity of the Internet, there are still areas and places where people have no access to these modern technologies. Companies rely on billboard ads to convey their message to these people. The billboards are there to stay, and the ads are not as fleeting as television or online ads.
The Changing Face of the Billboard Business
There was a time when billboard ads were created on paper and hand painted on large billboards. However, this is now passé as newer techniques in the billboard business have made the job easier and much quicker. Advertising agencies are now creating digital billboards that have a built-in computer that changes the text and images on the billboard at regular intervals. Digital billboards can be used to advertise products from several companies, thereby ensuring higher returns from a single billboard. Wooden, mobile, poster, and bulletin board are the other types of billboards used for advertising. Each of these billboard types has its own benefits and niche market.
Is this Business Right for Me?
The Billboard business is no doubt a profitable one; however, it must be conceptualized and executed with great planning.
It is ideal for those people who are creative or have the ability to get the work done from a creative team. It is also ideal for people who can network, negotiate, solve problems and make things happen. It is not necessary to be the advertiser/advertising agency who creates the ads to be an investor in billboards, if you can coordinate the key parties to achieve the right outcome. There is also the need to be aware of the competitors’ strengths and weaknesses so that they may be used to one’s advantage. One has to assess one’s abilities to reflect whether this type of job is his or her calling or not as advertising is a business that requires a futuristic vision. Those who have this vision can surely profit from the billboard business.