Billboard Advertising Business

Billboard Advertising Business

Billboard Advertising Business | A billboard is a fantastic way to get your brand noticed by thousands of viewers every day. Although billboards are most popular on highways, they can be found on buildings or even in the middle of nowhere.

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Billboard Advertising Business:
Billboard Advertising Business

Nothing beats the level of visibility that advertising on a billboard can bring.

For a relatively small investment, a company can get years of visibility, with thousands of potential consumers viewing the ad each day.

Starting a billboard advertising business could prove lucrative.

However, due to the Highway Beautification Act.

There are a number of regulations that may affect your business.

Understand the financial cost and legal ramifications first to ensure profitability.

Billboard Advertising Business

Billboard advertising companies purchase or rent small lots of land to erect billboards that are used to display ads for their customers.

Other types of outdoor billboard advertising include signage on public benches and buses.

These businesses also buy billboards from other companies and resell the advertising space for a higher price.

They perform a valuable community service by enabling property owners to earn income by leasing an unused portion of their land to provide advertising space for businesses.

Research local billboard advertising rates and compare them against anticipated business expenses, such as insurance, billboard construction, lighting costs, permits and taxes to ensure profitability. Expect to charge about $800 to $5,000 per month, or $200 to $300 per month in a small town, depending on the visibility and type of billboard. Your ground rent should not exceed 20 percent of your revenue.

Contact local zoning authorities to learn the legalities governing billboards in your county and surrounding counties. Electronic signs may be prohibited in certain areas due to their light emissions. They also may have strict guidelines on the display time duration between each ad. You may be required to obtain a permit from your state’s department of transportation.

Collect maps of the local area and begin plotting ideal locations for your billboards, such as off of highways or busy roads. The further out of town you go, the cheaper you can expect the rent to be. While you won’t be able to charge as much for your billboard as you would for one better situated, as the city expands, eventually your billboard may get great visibility. Alternatively, you can opt to purchase billboard signs, ground leases and permits from established companies. Find these companies online.

Consult with a lawyer prior to signing any leases to help you draw up the contract. Determine the percentage going to the property owner. When developing contracts for your clients, detail the duration of the add, design specifications, your maintenance responsibilities and penalties for breaking the contract.

Hire a billboard company to construct your billboard. LED billboards are a popular option. Otherwise, vinyl billboards are a cheaper alternative. However, an electronic billboard allows you to advertise more than one company at a time, potentially increasing the revenue that can be earned from one billboard. At the same time, advertisers may not wish to share an electronic billboard, which changes ads every 10 seconds. Gain feedback by interviewing local business owners.

Invest in graphic software, such as Photoshop, if you have design skills, or hire a graphic artist to work with clients in designing the billboards signs. Create a sample book of your designs to present to potential clients. Develop short, succinct, colorful, bold, eye-catching signs that drivers can’t miss.

What are the costs involved in opening a billboard advertising company?

The cost of constructing a billboard can range from $26,000 to $300,000, which often requires financing from banks or, more often, an outdoor leasing company. In some states and cities, a license is required, the average cost of which is approximately $200 per year. To find out the requirements of your city, you can inquire at city hall. You’ll need to purchase zoning maps and a measuring device designed to measure long distances. A vehicle is also necessary for traveling to and from sites to gather measurements and perform regular maintenance.

Develop competitive rates.

Determine your minimum and maximum rental duration. Offer discounts for longer terms.

Obtain a basic liability insurance policy.

skills and experiences

  • Communication and interpersonal skills for building strong business relationships and negotiating leasing contracts and advertising prices
  • Accounting skills for budgeting, accounts receivable and accounts payable
  • Computer skills for maintaining a website with information about your services and locations. There are classes available for learning these skills.
  • Graphic design skills for creating customized billboard advertising for customers. These skills can be acquired through classes as well.

    The growth potential

  • Billboard advertising is a growth industry and there are many franchise opportunities available. Some provide extensive training, mentoring and ongoing support.
  • How does a billboard advertising company make money?

    A billboard advertising business makes money by selling outdoor advertising space on billboards, benches, or vehicles. Many also make money by selling their leases and permits to competitors for a profit. Prices can range from $5,000 to $200,000 or more, depending upon the location, the degree of visibility, and the amount of traffic it receives.

  • target market?

    Customers are business owners who want to increase public awareness of their goods, services, and locations. Clients may also be landowners seeking to make a profit by allowing advertising displays on their property by leasing a portion of it to your company.

  • Business of the day

    • Meeting with business owners, real estate developers, graphic designers and advertisers
    • Researching local zoning laws to determine the best potential sites
    • Measuring land and billboard space
    • Negotiating land use contracts and prices for advertising
    • Overseeing the safe construction of regular and electronic billboards
    • Conducting inspections, performing maintenance and making necessary repairs
    • Bookkeeping and accounting
    • Who is this business right for?

      This is a great business for those who enjoy making mutually beneficial connections between landowners and entrepreneurs. Billboard advertising business owners play an important role in increasing the visibility and success of businesses. Those who prefer to perform a wide variety of duties in a number of different work environments both indoor and outdoor, thrive exceptionally well in this business. Community-minded individuals are well-suited for meeting the challenge of matching the right location with the right advertiser at the right price.

Items you will need

  • Business plan
  • Permits
  • Billboard signs
  • Software
  • Contracts
  • Tip

    • When looking for a billboard construction company, ensure that they offer software training for electronic billboards and warranties. Know the life expectancy of your electronic signs. Don’t overlook small towns where you may be able to establish a solid presence. Adjust your billboard specs accordingly to accommodate the budget of owners in a smaller town.

    Things Needed

    • Business plan
    • Permits
    • Billboard signs
    • Software
    • Contracts


    • When looking for a billboard construction company, ensure that they offer software training for electronic billboards and warranties. Know the life expectancy of your electronic signs.
    • Don’t overlook small towns where you may be able to establish a solid presence. Adjust your billboard specs accordingly to accommodate the budget of owners in a smaller town.
    • Writing copy for billboards is a very tricky job. Not only are you trying to capture the viewer’s attention, but you need to do it when they are driving at high speeds.

      In order to write effective copy, you need to follow these five rules:

      1. Plan your business. A clear plan is essential for success as an entrepreneur. A few important topics to consider are your initial costs, your target market, and how long it will take you to break even.
      2. Form a legal entity. Establishing a legal business entity prevents you from being personally liable if your billboard advertising company is sued.
      3. Register for taxes. You will need to register for a variety of state and federal taxes before you can open for business.
      4. Open a business bank account. A dedicated checking account for your billboard advertising company business keeps your finances organized and makes your business appear more professional to your customers.
      5. Set up business accounting. Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
      6. Obtain necessary permits and licenses. Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
      7. Get business insurance. Insurance is highly recommended for all business owners. If you hire employees, workers compensation insurance may be a legal requirement in your state.
      8. Define your brand. Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
      9. Establish a web presence. A business website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new clients or customers.

        What are the steps to start a billboard advertising company business?

        Once you’re ready to start your billboard advertising company, follow these steps to ensure that your business is legally compliant and avoid wasting time and money as your business grows:

      Keep it simple: The most important part about billboard advertising copy is to keep the message simple. If drivers only have a split second to read the billboard, do not complicate matters by having long-winded copy that drones on about your product or service. Make sure your message gets to the point and is no more than three short sentences.

      Write copy that fits: Before writing the copy for your billboard, find out exactly where the billboard is going to be located. For instance, do not say “For a greater burger turn left here”, when your restaurant is on the right-hand side of the road.

      Test your message: The best way to test a message is on a neutral party. Give a friend, family member or work associate the message and see if they can make sense of it. The message needs to be simple, clear and precise. While you want it to be easy to read, you also want it so say exactly what you are offering.

      Know the theme of your message: You cannot portray your message effectively if you do not know what the theme is for your billboard. In order to create the right theme, you need to take into account what you are selling and the viewer’s mindset at the time. Focus the copy on what is most likely going to have a direct impact on the driver. For instance, if you are advertising a hotel, focus your copy on portraying how going on this holiday will benefit viewers.

      Take a drive for inspiration: The best way to find out what copy you should write, is by taking a drive and seeing how your competition and other industries use industrial signage. When reading billboards, ask yourself three questions: what stands out for you, why does it work and does it fit with the surroundings? By asking yourself these questions, you begin to look past your product and focus more on the type of copy that this advertising method requires.

      When writing copy for a billboard, you need to follow these five rules. Be sure that you stick to the basics and provide easy-to-read copy that makes sense and has a clear call-to-action. You only have a few seconds to impress your viewers, so make them count.

    • How to promote & market a billboard advertising company

      One of the best ways to promote your billboard advertising business is by keeping abreast of new developments within the industry and the creative waysin which competitors are using them. Creating a blog on your website that features a profile of a different local business each month is a good way to demonstrate your knowledge of and dedication to the community. Advertisers love to take advantage of holidays to offer their customers great sales promotions and savings. Sending out pre-holiday promotion offers of your own is a good way to maintain consistent contact with existing customers as well as develop new business relationships.

    • How to keep customers coming back

      Visiting your local chamber of commerce is a good way to meet business owners who can benefit from the advantages of billboard advertising. Attending and sponsoring community events is another. When prospecting for new customers, it’s important to have a portfolio that illustrates your best work as well as statistics demonstrating the correlation between billboard advertising in a specific location and an increase in sales figures as a result. Creating a loyalty program that offers savings for long-term contracts is a great way to ensure a steady stream of income while you cultivate new prospects.

    • How much can you charge customers?

      The amount you can charge customers depends on a number of factors, including the location and type of billboard. Billboards in areas with higher traffic are in greater demand than those with less visibility. Prices are also determined in part by the length of the contract with the advertising company. For regular billboards, prices can range from $1,500 to $100,000 per month. Electronic billboards rotate advertising for multiple customers. Small to medium sized billboards can earn $300 to $2000 per month, while large ones can command prices between $1500 and $30,000.

    • ongoing expenses

    • Ongoing expenses for this type of business include:
      • Property rental or lease costs
      • Liability insurance
      • Electricity costs for billboard lighting and electronic billboards
      • Maintenance and repairs
      • Construction costs for the erection of new billboards
      • Transportation to potential sites and meetings with business associates
      • How can you make your business more profitable?

        Creating and following a good business plan is one of the best ways to make your business more profitable. That plan should include expansion because many advertising companies require a minimum amount of billboards before they will agree to work with a new business. Another way to increase your profits is by designing the billboards rather than hiring another company for that part of the process.

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