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.

Starting an Outdoor Billboard Business

Starting an outdoor billboard business is possible with a small amount of capital and a little knowledge about this business sector. The first phase is to have a business plan.

Business Plan

A business plan is a written statement where the goals of the new company are documented. The next step is to clearly state how these goals are going to be obtained and how this is possible to achieve these goals. If the new business is a partnership, then the responsibilities of each partner should also be defined.

For new business owners looking to take out a small business loan, a proper and formal business plan is required by financial institutions for the loan to be approved.

Small Business Loan

To acquire a small business loan a formal statement about just what your business will do to make a profit, a business plan and the capital you already have must be in place so it can be submitted to the financial institution.

Know there are different types of small business loans so pick the one that is favorable to you. Also look at what the different financial intuitions in your area have to offer or basically shop around. You should notice the terms of each type of loan, the interest rate and the length of the loan before deciding where to submit your loan request.

For many groups of Americans like veterans and minorities, there are special small business loans offered with governmental assistance that make the process easier.

Know the Local Ordinances

In the area you will be concentrating your advertising business, know the local ordinances. This will make is possible for you to know what is possible and where.

One of the easiest ways to get into the outdoor billboard business is to look to fill a need. For local municipalities that are in need of an income, the renting of public land for the placement of a billboard is a possibility. Because the municipality is involved the permits and zoning laws can be made to help accommodate your business.

Know the Market

By looking at who is already advertising in your target area will help provide a starting point on which types of business should be your focus to entice them to advertise on your locations.  This will also help you to identify just who has an advertising budget. These businesses can be already advertising in the local newspapers, on billboards, bus stops, TV, Radio, on buses and even taxis.

You can reach out to these companies to entice them to use your services. Their competition should also be contacted as a possible source of revenue for your business.

The Passive Revenue

To begin an outdoor billboard business all starts with the first client. With the average lease lasting 1 year and clients paying by the month or annually, there is time to find the second client. This is how you can grow your business in a constructive manner.

For more detailed information our valuable eBook has been created to help you. You can find this eBook here at How To Make Money with Outdoor Billboards. 

Outdoor Billboards Businesses are Thriving

With an increase in revenue from the previous year, the Out-of-Home advertising business sector in America had an increase in 2017 by 1.2%.  This revenue stream has now reached $7.7 billion annually and is continuing to rise. The past 31 consecutive quarters had rising profits and growth, the outdoor billboard businesses across the nation have a solid future for the entrepreneurs of our country for a passive income to be made.

There are many different organizations that are looking to capitalize on this growth potential including California. Their governor has recently announced that the state will begin to open their traffic billboards to the private sector for means of advertising.

That move by California is posed to bring in much needed cash to the state coffers, but there might be a price to pay for it. Back in February this year the Federal Highway Administration or FHWA imposed a fine of $14 million on the state of New York for illegal use of on-road signs that the state owns.

The problem the state of New York has is they are promoting the state for tourism in an illegal fashion with the ‘I Love New York’ signs. The regulation of state owned signs have to be in accordance with the Manual on Uniform Traffic Control Devices or MUTCHD as issued by the FHWA.

The signs NY has posted advertising the state are illegal because they are did not follow the rules as stipulated by the MUTCHD guidelines. The fine imposed is not really a fine but rather the withholding of $14 million of federal money the DOT of NY would have received from the federal government. The state of California might experience the same type of fine or withholding of federal funds with the renting out of their traffic billboards.

The MUTCHD states that the state owned welcome signs can only display the name of the state, its seal and motto along with the current governor’s name. The sign can also be in any color other than the green used as official road information signs as used in America.

As seen in the picture above, everything below the ‘Welcome to New York’ part of the message is not allowed. Even the governor’s name on a green sign below the welcome sign is not permitted in accordance with the MUTCHD guidelines.

With the first road side billboards being rented out in the near future in California, the FHWA will have to review their guidelines and decide if withholding federal funds will occur for that state.

Both of these instances are examples of why every outdoor billboard company should always comply with the laws that regulate this business sector. The private business sector is fined when they break the rules or laws. While a state will never go out of business, privately owned businesses have to make a profit or close their doors.

Know the laws and regulation in your area of the country where you have billboards to help ensure your passive income from advertising will continue. This is just a good business practice to maintain a profitable business and income.

How Outdoor Billboard Business differs from other types of Investments

The outdoor billboard business sector has been around for more than 100 years and it is still flourishing. These signs have become part of the American culture and for many are necessary to help other business sectors to succeed.

In the urban areas of America the use of the digital billboards is the path to follow if you are an advertisers or owner of a billboard space. In this type of setting the traffic patterns are at their highest so more people will see what is being posted. The owners of the billboards can also charge a premium price for this space that has now reached on average of $100,000 a year for renting the space on the billboard.

In the so called rural area of the nation the old fashioned wooden billboards covered with a paper or vinyl and glues to a flat surface is still king. These so called old fashioned billboards have become part of the culture, especially when they are still advertising hot spots from the past like on Route 66 and the vintage towns on that historic route.

The older style of billboards is not a lucrative in terms of revenue as the digital billboards, but their construction and maintenance costs is also dramatically lower. With the construction costs of a small wooden billboard being under $10,000 and the revenue on an annual basis being from $8,000 to $15,000, the time to recover then initial investment is a year or less.

The smaller wooden outdoor billboards on the rural highways across American and in the smaller cities are where it is possible to break into the advertising business sector at a minimal cost. As with most business, the first year will be no too little profit.

After the initial recovery of the money invested, the outdoor billboard business is mostly profit. The rental on a billboard is continuous just as long as you have an advertiser renting the space form you. The only possible cost would be if the landowner requires payment even when no advertiser is renting the space. This is negotiable.

With the spaced rented the income on average of $10,000 on an annual lease, a passive for the next 12 months is guaranteed. In time like other business, your outdoor billboard will expand. This will increase the monthly income.

This type of continuous passive income flowing into your business is what sets this type of business sector adrift form most other businesses; no real interaction is needed to make money.

To break into this type of business, most look to take over an existing lease on a billboard. This path already has the land rent agreement in place along with the permits and in many instances a client advertising on the billboard. This makes sit possible to begin a steady passive income from nearly the beginning of the enterprise.

The first step to investing in an outdoor billboard business is to look around your area or in a city or town just down the road. By noticing any out of date or empty billboards, is the ideal place to start your next investment in search of that positive passive income for your family.

Outdoor Billboards as a Second Income

 

In today’s fast paced and expensive world the opportunity to operate an Outdoor billboards business as a second income is becoming more attractive. This type of operation on average can bring into the family household is up to $2,000 a month on average per large billboard that is rented out.

For many American families, the capital to begin a new business seems out of reach, but there are those determined few who do find a way. One such entrepreneur began advertising back in 2002 by using his bicycle and pulling a small sign behind it. This is the owner of bikebillboards.com.

 

Since the humble beginning of constructing the trailers with billboards in his garage, Mr. Pawlowski has made is small business grow to reach coast to coast. The original inspiration for this idea was just to generate some extra income and stay busy during his retirement.

You too can take a small idea and make it flourish into a thriving business opportunity or just be happy with the extra income an outdoor billboard business will generate on a monthly basis. This all begins with just one client and one sign placed in one location or maybe on the side of an RV or truck you own.

One of the largest organizations in the outdoor billboard business sector has more than 340,000 billboards in place.  This business began back in 1906 when a banker decided to invest in a poster billboard business. This was a small sign company that also owned an opera house located on the Gulf Coast. Today over 100 years later they are one of the largest in the world and own billboards in America, Canada and Puerto Rico.

Just as the two examples have illustrated, in America if you have the determination, patience and the will to succeed, you too can earn money in the lucrative out of home advertising business sector. It all begins with the first step of desiring to operate an advertising business. Next step is finding a client and posting your first sign.

As a way to break into the business if you have some land, place a sign on it if zoning laws are favorable and you can get a permit and advertise ‘this poster is for rent’. You can be your first client, but you won’t be the last one once people take notice.

The main advantage of a stationary advertising sign over the mobile ones that are being pulled by bicycles is that the stationary billboards are totally passive income. With the mobile signs the mobile units has to be pulled in public for a designated period of time. The stationary sign is always on.

Also with the stationary outdoor billboard if the rent is at $2,000 per month, then it will be generating nearly 5 cents every minute, 24/7/365. That does not sound like much, but it does add up. This income is rolling in day and night, during rain and snow storms and even when the power it out, you are making money.

By operating an outdoor billboards business as a second income, you and your family will have that extra income to help make ends meet and more.

Investing in Billboards is better than the Stock Market for Retirement

As you grow older your investments aimed to fund your retirement need to get more conservative. Because of this many Americans are moving out of the volatile stock market and looking for another type of investment to help their nest egg grow. This is where investing in outdoor billboards is advantageous.

By owning or just renting out billboard space, a passive income can be earned each month that will make it possible for your nest egg to grown independent of the economy and market place.

For more than 100 years the outdoor billboard business sector has been serving as a mass media outlet for business to advertise their goods and services. Even after the popularity of the digital mobile world took the youth by storm, the outdoor billboard business sector has continued to thrive.

It is true that investments in the stock market can bring in large windfalls, but huge loses can occur overnight. Those types of wild swings with your nest egg do not occur in the outdoor billiard business. What you can count on is a steady passive income on a continuous basis.

Depending on where the billboard is located, the average rental income for a sign in America is from $3,000 to $4,000 a month. The net profit is 75% of that or $2,250 to $3,000 every month for each billboard you rent out. This profit can reach up to or more $36,000 annually if you own just 10 outdoor billboards.

This passive income is almost guaranteed unless you lose a sponsor who was renting your billboard sign. Then all you need to do is find another client and you are back up to full profit potential.

With the stock market there are always fluctuations and corrections. If you have investments that goes south, in most cases it would take years to recoup those loses. For people approaching retirement do not have that time to recover.

Another difference between investing in stocks and in an outdoor billboard business is how your income is taxed. With the stock market you have to give an additional 15% of what would have been profits in what is referred to as Capital Gains tax. This is not present when you are operating a small outdoor billboard business.

Beginning in the outdoor billboard business starts with taking over a lease on just one billboard. The location of the billboard will determine its value and costs. Signs on interstates have the highest revenue potential but cost the most. The smaller state and rural highways are less expensive, but the revenue potential is also lower.

By finding one on a rural road, you can learn about the business with a minimal investment. Even if you only rent out the space for $1,000 a month, the gross income will be $12,000 a year. With 25% going to the landowner you can net $9,000 on just one location annually.

With the outdoor billboard business and its passive income the revenue potential is more consistent that a person close to retirement can count on. Best of all even after retirement, this passive income can keep rolling in.

The Future of Out of Home Advertising

The future of out of home advertising is changing to be of more relevance to the consumer instead of just branding a product. With the increase popularity of mobile services, an outdoor billboard can direct consumers to a site or app where they have been known to go viral.

Recent examples of just how powerful the combination of outdoor billboards and social mobile media and how they interact to spread the word is with the shaming of the New York Times and the 4 Billboards of Wichita. Both of these billboards were sending out a message and it spread in rapid fashion with the help of social media outlets including Twitter, Instagram and Facebook.

This new approach to using the space on outdoor billboards is now in direct completion with TV, printed news, direct mail and radio ads where there is more time to convey the message of the sponsor. By directing the consumers who pass by the billboards to a location on the internet, more information can be presented, just like the other forms of mass media.

The joining of forces with one of the oldest forms and forms of advertising, outdoor billboards and the newest which is online social networks, more people are being reached. What both of these forms of spreading a message have in common is they are both reaching out with their messages 24/7.

All other forms of advertising have limited amount of time during the day or week to reach out and for a few like the newspapers and magazines, a purchase has to be made for their messages to be seen. This limits their exposure to their target audience.

Because the messages on outdoor billboards are reaching more people on a daily basis and driving them to social media sites, the cost of advertising on them is increasing in urban areas. The locations with a high amount of traffic are still the most profitable, but some billboards are located where a target audience frequents. Those have a limited exposure, but the consumers are more responsive and interact with the ads on social media outlets.

This is the direction for out of home advertising that the outdoor billboard business are the first to jump into to make their businesses more profitable by offering a better product to their clients.

This connection can be made by connecting the messages on billboards and placing them on social media sites online so the client’s message can spread to more people faster. Other forms of advertising have already attempted this type of business venture, but with limited success. This is due to their lack of exposure as a mass media outlet.

For these in the outdoor billboard business, remember to connect the ads you are posting with the social media outlets on the internet. This should be part of the package deals you sell to your clients. It will increase your profits and help the messages you are posting to reach more people.

Outdoor Billboard use Digital to Attract Specific Audience

 

The use of the digital outdoor billboard is changing to attract a larger audience. Because of the ability of billboards to change their ad campaign with a few strokes on a keyboard, different audiences can be reached from the same location.

No longer are advertising firms restricted to the old ways of collecting data from past surveys, censuses or traffic counters to decide on what should be advertised at specific location. Today there is real time data on what type of people are in front of billboards at specific times is available.

The real time data is collected from multiple streams online that can include events going on near the billboards. A great example is if there is a football or baseball game being played. The times before and after the game there are sports fans walking or driving by. With a few strokes the ad can be changed on the digital billboard to attract their attention.

That same billboard could be near movie theaters. In the evening after the game is over the billboard can target movie goers. In the late evening hours it can be changed to reflect local restaurants for those people who have been clubbing and are looking to get a bite to eat before heading home.

It is this type of changes to ads that are taking place to attract the audience in front of and near the billboards. By following the real time traffic flow and knowing who is in the area is the best way to get attention and draw customers to the sponsors of the ads.

By using technology in a smart way, billboard owners can increase the value their signs provide the clients. This on demand theme is what is trendy. It can be seen in the way people use TV with all the online formats that provide what the viewer desires at a time of their choosing. The same goes for out of home advertising. Meet the demand of the target audience that is always on the go.

The need static billboards across the nation will never totally go away, but their value is limited. They will still play an important role on the highways and byways of America, but once people are in the urban areas, the mindset of the billboard owner must change with the times.

In the past location was everything in the outdoor billboard business. This is still true, but now the ability to change the ads as the audience changes is fundemental to attracting their attention. This mass media type of advertising is transforming into one that has a more targeted audience.

Not only are ads being changed by the time of day but also by the season. Because there is no printing involved, the changing of ads is faster with the digital format at a lower cost.

It is true that the digital outdoor billboards are more expensive to build and operate, but the value they provide sponsors is immense. This is the direction of this out of home advertising is going now and into the future.