The New Importance of Outdoor Billboards

It has become evident that the new importance of outdoor billboards as part of any advertising campaign has emerged. Just 6 days again it was reported by Reuters that Netflix made a $300 million offer to purchase Regency Outdoor Advertising in Orange County California.

Netflix knows the Importance of Billboards

Netflix is not the only organization bidding for this outdoor billboard owner and just 3 days ago, Netflix again upped their bid to $391 million was reported.  With a jump of nearly $100 million in only 3 days, this bid must be taken seriously and emphasis how important Netflix views the mass media approach of outdoor billboards.

What should be known is that Netflix has an advertising budget of for its movies and shows of $2 billion for this current year. The outdoor billboard advertising firm they are attempting to purchase owns billboards all over LA including Sunset Strip.

With the monthly rental of just one billboard on Sunset Strip reaching more than $140,000, the purchase of this advertising firm would be a wise investment. Not only will Netflix own space in the entertainment capital of the world, but also at the airport for travelers to see constantly upon their arrival.

Profitability of Outdoor Billboards

With the numbers reaching $100’s of millions, the importance of Out of Home advertising on billboards is evident. This mass media marketing approach is more than just alive; it is still a highly profitable business venture.

The cost of rentals of billboards does vary depending on their location. Sunset Strip is at the higher end of the range. On rural roads the costs can be as low as $250 a month with locations in NYC and Chicago going for $14,000 a month. This shows how important the location is relative to costs of the rental.

For most small to medium size cities, the monthly revenue of just one outdoor billboard will be in the range of $1,500 to $4,000. This is potential profit for any outdoor billboard business venture an entrepreneur might create for themselves.

Factors determining the rental price

The leading numbers that any investor should look at when deciding on a region is number of adults in the area and potential weekly impressions the sign will receive. The more adults in the area the higher the weekly impression will be and the more the billboards can be rented out for.

Another important factor is the size and power of the competition in the area. Nearly everywhere across America already has an outdoor billboard business in it. Most have more than one, but that should not persuade anyone away from this type of business venture.

Getting into the Outdoor Billboard Business

For many investors, the easiest path is the best. With outdoor billboards, this would entail the purchase of existing billboards from the competition. The lowest cost ones would be the billboard in locations the competition has not been successful at.

If a billboard fails to attract attention, it is not always the location. Many times it’s the message. By following the 8 second rule of grabbing the attention of travelers, a billboard can become a profit making machine.

The outdoor billboard business is becoming more popular in recent years. Now is the time to make an investment in this reliable income source.

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