How to Invest in Billboards (2024)

FAQs

How to invest in a billboard? ›

To own a billboard, you either have to buy one that's already in place, place one on your land, buy one and rent land, or lease a billboard and have land to place it on. Typically speaking, a location should have advantages like heavy foot traffic or a large population that passes by the billboard.

Owning a billboard provides large companies a regular income cash flow. The revenue generated by billboard companies may reach up to 40 to 50 percent before counting the depreciation, taxes, amortization and interest. The rate of income grows higher on highway billboards that may go higher as 60 percent of revenue.

Plan to spend from $750 to $2,000 a month for physical billboard campaigns in rural areas, $2,500 to $4,000 in small to midsize cities, and $14,000 and up in larger markets. Digital billboards can cost from $10 per seven-second spot to over $15,000, depending on the billboard's location, ad duration, and frequency.

Digital billboards offer ENHANCED visibility, flexibility, and cost-effectiveness, making them a worthwhile investment that could be very profitable for your brand or business.

The cost of renting a billboard varies depending on many factors, including the size and location of the billboard. A small billboard in a rural area may cost as little as $200 per month, while a large billboard in a major city can cost more than $10,000 per month.

Billboard Loans Are Increasingly Hard To Find

However, it is becoming increasingly difficult to obtain billboard loans. As a result, finding the funding you need to get your project off the ground can be difficult. YESCO has a wide variety of in-house billboard financing options to choose from.

Memorable, easy to understand, clear and easy to read are all factors in a good billboard ad. It should convey a concise message that is not overbearing to read or acknowledge while also being eye-catching. We've all seen catchy ads that we remember but cannot remember what the ad was for.

Wakati Outdoor Advertising

In fact, research shows that billboard advertising has an almost five-times return on investment (ROI) for companies who advertise on them. Billboards are cost-effective and provide continuous exposure for your business or brand.

Classic billboards can cost as little as $250 per month when they're in rural areas and as much as $14,000 per month if they're located in midsize or large cities. Digital billboards are more expensive, costing between $1,200 and $15,000 per month.

What is the ROI of owning a billboard? ›

Outdoor ads have the lowest cost per thousand (CPM) of almost any medium, ranging from $2 to $7, and that efficiency also means they deliver high return on the relatively low investment. Billboards have an astounding 497% return on investment, according to the Out of Home Advertising Association of America (OAAA).

The future of billboards is DIGITAL. In recent years, advancements in technology have allowed these giant billboards to become more dynamic and interactive. With the integration of digital screens, billboards can now display high-resolution images and videos, providing a more engaging experience for viewers.

According to the Out of Home Advertising Association of America, OOH advertising methods—including billboards—are between 38% and 86% effective at provoking a consumer response.

To determine the hypothetical lease payment, most billboard operators will calculate 10-30% of the billboard's actual or anticipated advertising revenue. They will then take this “hypothetical rent” and multiply it by 8-12 to determine the easem*nt's value.

As one of the most famous and high-traffic areas in the world, Times Square billboards can command a premium price. According to some estimates, the cost of a billboard in Times Square can range from $10,000 to $22,000 per month or more, depending on the specific location and other factors.

Industry reports often suggest a favorable return on investment (ROI) for well-placed and well-designed billboard ads, making them a valuable component of a successful marketing strategy.

How many albums do you need to sell to land on the Billboard charts? You don't have to push millions of records to get on a Billboard chart; you only need to sell about 500 albums in the first week or pull between half a million and 1.5 million streams (or a combination of the two).