Digital Billboards Drive Industry Growth

By Darrin Friskney
Watchfire Digital Outdoor

Not much has changed in outdoor advertising over the past 100 years, but the industry is poised for an evolution that will boost revenues significantly.

While traditional mass market media has struggled in recent years, the introduction of digital billboards is helping the outdoor advertising industry thrive.  Outdoor advertising has become a frontline contender for advertising investment dollars.  Here are the trends driving this resurgence:

1.       New focus: one board for many advertisers.  Aside from raising rates, an outdoor advertising (OA) company’s best strategy for growing revenue had been to erect additional billboards.  The more billboards, the higher the revenue.  However, strict cap and replace ordinances often limit the number of billboards a company can own.   This will lead outdoor advertising companies to look to technology—in the form of digital billboards—to grow revenue through more efficient boards.  Digital billboards allow several advertisers to share the same billboard, multiplying revenue from an individual board by as much as six to eight times. 

2.       Selling strategies become more sophisticated.  OA companies will get more out of their digital billboards by finessing their selling strategy. Strategies such as exclusive category sponsorships, unlimited copy changes and automated database-driven updates are important selling points and potential premium offerings that will help advertisers maximize returns on their outdoor advertising investment. 

3.       Digital billboard networks will rival other advertising media.  Networks of digital boards will rival TV and radio advertising in everything from market coverage to ease of updating timely messages.  With traditional static billboards, advertisers with time-sensitive offers would not consider outdoor advertising as an option.  However, digital billboards will change that. 

4.       Ad testing will improve creative.  With the ability to change the content and creative of digital billboards almost instantly, advertisers will test creative techniques and tweak their billboards for maximum ROI. 

5.       Advertisers will demand digital.  As the benefits of digital billboards become better known, outdoor advertisers will demand that their OA company offer a digital alternative to static boards. Demand for outdoor will continue to grow as it is one of the few remaining true mass-reach advertising vehicles with no way to block or pre-empt the message.  OA companies need to be ready for the demands.   

6.       Revenue models will solidify.  OA companies will become comfortable with new revenue models, such as board sharing, day-parting, exclusive sponsorships, short-run premiums and others. 

7.       State and local governments will see the light.  As digital billboards prove that outdoor advertising can look good and offer a community service by running Amber Alerts and other public notices, state and local governments will continue to review and write ordinances to permit digital billboards. 

8.       Digital outdoor advertising will expand beyond the "big boys."  The largest outdoor advertising companies have dominated digital outdoor advertising.  In 2007, the rest of the OA companies will come on board in a big way.   

9.       Programming will begin to move in-house.  As advertisers become comfortable with digital billboard software, they will begin to schedule and program their own boards.  Ads can be formatted as static JPGs, sent to signs via a DSL connection and scheduled using user-friendly software. 

10.   Mobile outdoor will adopt digital.  Mobile billboard trucks, noticing the success of digital billboards, will trial and adopt digital boards.  All the same advantages that apply to traditional outdoor apply to mobile.   

Darrin Friskney is the director of Watchfire Digital Outdoor, manufacturer of the most durable and dependable digital billboards available.  He can be reached at Darrin.Friskney@watchfiresigns.com or by calling (866) 949-9282 or visit http://www.watchfiredigitaloutdoor.com/

Can you imagine what it would be like if you drove hundreds of miles without seeing any billboards? Where would you eat when you got hungry? Where would you sleep? How nervous would you get when your gas tank reached an eighth of a tank? Would you worry more when you can't find a gas station and have no idea how far the next station is? Think about how nice it would be to see a sign that says "Gas, Food and Lodging Ahead 1 Mile." If billboards are banned then you would not be fortunate enough to see any of these helpful signs. Four states, Alaska, Hawaii, Maine & Vermont have laws that prohibit billboards!

• Some people think that billboards are an eyesore and have even compared them to graffiti!
• Others have even argued that billboards block the sky, meadows, and lakes. However, all of these things can still be seen with or with out billboards. There are also other things that block a partial view of the sky and lake such as skyscrapers, large trees and bridges.
• Some people think that billboards are not effective. These people have said that billboards lack the power of persuasion. If this were true, then why would you see automobiles with license plates from various states and counties every time you go to a local restaurant?
  • The Outdoor Advertising Association of America (OAAA) did a study in 1999 that stated people glance at 70% of the billboards they pass and read 63%.
• You can't "turn off" a billboard, it's always there. One guy feels very strongly about this and even wishes he could have a restraining order on billboards! Advertisers view this as a benefit.
• Billboards have been referred to as "Litter on a Stick." Merriam-Webster's Dictionary defines litter as: "trash, wastepaper, or garbage lying scattered about or an untidy accumulation of objects." Well kept billboards are not any of these things. In fact there are several different organizations (listed at the bottom of this article) that make sure all billboards are properly maintained.

• Many small businesses do not have the money to spend on television or radio commercials. Billboard advertising is the cheapest form of advertising and it reaches more people than any other form of advertising.
  • The OAAA says that 75% of billboard revenue comes from local businesses. If these businesses can't afford to advertise than how will people find them? More importantly, how are they going to stay in business? Our unemployment rates are too high already; removing billboards will cause millions of more people to lose their jobs.
• Millions of people travel with out knowing what hotel they will sleep in that particular night or what they will eat for supper. Billboards lead travelers to hotels and restaurants when travelers are ready for them without delaying their trip.
  • Three fourths of Americans rely on billboards to find places while they are traveling.
• Billboards don't just increase profits, they also help people. For example, we have done several billboards that try to convince people to stop smoking, to prevent the spread of AIDS, and offer pregnancy support.
  • Studies have shown that teens who are exposed to anti-drug ads once a day will use drugs 40% less than teens who aren't exposed to these ads.
• Billboards are a symbol of life. Think about it, most ads show us the newest, latest, or most current trends. By doing this, they showing us that times change and so does their product or service. Life is definitely full of changes. When you see neat, well kept billboards you know that the area you are in is not abandoned.
• They give us information. Of course billboards help us find places and some signs tell us how much further places are. Other billboards tell us about upcoming events like concerts, conferences, and festivals. Some billboards reveal very useful information like current gas prices. Knowledge is power and the more we have, the better of we will be.
• Not only would billboard companies and small businesses suffer from the loss of billboards, but so would the people that own the land the billboards are on. All of our landowners receive either free advertising or money for allowing us to put a billboard on their property.
  • In Tampa, Florida the value of commercial property with billboards on it is 54% higher than the value of commercial property without billboards!
• According to the OAAA, iMapData did a study about the economical effects of Vermont and Maine after they banned billboards. When compared to all other states, the economy of both Vermont and Maine rated C- to F (A+ is the best possible rating and F- is the worst.) At the time of this study, Vermont's tourism expenditures had steadily decreased and in 1996 was lower than it had been since 1974!

Billboards now have stricter zoning laws that are closely monitored. All billboards must have permits displayed on them at all times. Some cities also require billboard companies to pay annual fees. Unfortunately, these additional fees can also cause the monthly rates of billboards to increase.

Find out the rules and statutes for each state at http://www.nahba.org/rulesandregulations.htm.

Federal Highway Administration http://www.fhwa.dot.gov/ which strives to create the best transportation systems.

National Alliance of Highway Beautification Agencies directs and manages the states outdoor advertising. http://www.nahba.org/

Unites States Department of Transportation http://www.dot.gov/

Don't forget the importance of billboards. Please print this article and keep it so you will know the facts when your state or county votes whether or not to ban billboards so you will make the right choice.

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