Billboard and Outdoor Advertsing News for Property Owners

Digital Billboard At Night


During the so called economic boom years, when the banks were giving away money, the billboard, or outdoor advertising industry, under went a major consolidation.

Big Billboard firms went on a wild spending spree purchasing smaller companies, and in my opinion, simply over-paid for these new assets. They took on massive debt to finance their purchases.

When the recent "recession - depression" hit all advertsing took a hit. Revenues dropped while operating expenses began to soar especially in the outdoor sector.

To dig out of this mess Big Billboard now think that the new "digital" billboards will save them. This new digital format is effective and is almost labor free as they don't require employees to change billboard advertising copy or maintain the lighting system.

This is not good news for billboard employees and is even worse news for for property owners leasing real estate to billboard companies

EXAMPLE

St Pretersburg, Fla. 8-18-11. The St Peterburg Times reported that the city council rejected digital billboards.

The billlboard firms offer the city a deal, to remove 80 traditional billboards and replace them with 6 digital faces.

They also offered the City $2.1 million woth of free advertising space over 20 years for city public service announcements.

Big billboard offered to throw away 74 tradiional billboard sites for 6 digital ones.

The reason for the rejection was that residents of the community complained loud and clear at the City Council hearing stating, "digital boards were much brighter, more dangerous and very distracting for motorist and they greatly annoy near by homes."

Bill McInerney
(619) 816 3933

Trailer Billboards

L.Aa, CA. 9-2111. The state Assembly voted to approve bill that would give Los Angles officials more power to crack down on mobile billboard advertisers.

The bill also broadan the definition of a mobile billboard to include any device that transport a sign for the purpose of advertising.

Bill McInerney
(617) 816 3933

The War Is On

Billboard, or outdoor advertising news,is sometimes difficult to come by for many property owners.

Recently and on 8-19-11 the St.Petersburg Times,of Fl., reported,"St.Pete council rejects digital billboards."

Yes, the war is on and you just might find yourself in the middle of the battlefield.

The newspaper reported that the city counsil rejected a "deal," to remove 80 traditional billboards and replace them with 6 digital billboard faces. Outdoor advertising wants the all digital boards because they cost much less to maintain labor-wise.

The "deal" also came with an offer of $2.1 million worth of advertising space over 20 years for city public service announcements!

In other words "big billboard" would throw 74 property owners under the bus!

But the billboard firms won in Tampa, Pinellas and Hillsborough counties and in South Pasadena.

The deal was rejected because local citizens complained, "digital billboards and more dangerous and distracting for motorists and annoying for nearby homes."

Yes, the war is on.


For now,


Bill McInerney
(617) 816 3933

It's been a long time!

Yes, it's been a long time but we're back. The new telephone number is
(617)816 3933. The best e mail at this time is mcinerney_bill@yahoo.com


The billboard outdoor advertising industry and business is like all industries and businesses: under great stress because of the economcy and the financial markets.


For Now,
Bill MCInerney

UK...Billboard Ad Industry Under Investigation

The Office of Fair Trade has "launched an inquiry into the UK's 750 million ( euros) billboard and ad industry including both the structure and competition within the sector."

" The move follows complaints that the dominance of a small number of specialist buyers and outdoor media owners maybe distorting prices and shutting out potential rivals," This is from U Talk Marking.Com

The four companies that control most of UK's outdoor advertising sites: CBS Outdoor; Clear Channel, JCDecaux and Primesight and two agencies: Posterscope and Kinetic.


L.A. Deep Pockets: L.A. Billboard companies on Pace to spend $1.5 MILLION Lobbying City Officials. For the first 3 months of 2010, 5 major firms in L.A. paid $379,000 to firms lobbying on their behalf, according to reports filed with the City Ethics Commission.

Bill McInerney
Outdoor Advertising Consultant




Outdoor-Billboard Consulting Services for Property Owners.

Coke Cola Goes Digital!

Big billboard spender Coke Cola is now the proud owner of 28 electronic digital billboards in 27 markets in the US reports Advertsing Age.

This might be a trend to closely watch. Coke Cola a "media owner and operator."

This signage doesn't come cheap as each electrong face has a price tag of $250,000. for a total $7 million. Each LED screen is 14 x 48 feet in size.

A drop in the outdoor advertising bucket as in the first 11 months of 2009 the beverage firm spent $31 million on billboard advertising.

They have rented structure space from such firms as Clear Channell and Boardworks and the terms were not disclosed.

The drink company owns and manages the digital content. Is Coke Cola now
an emerging media firm?

They have screen space to share with "retail and charity partners" and who knows what may come next?

Per the outdoor association, the OAAA, there are now 1,800 LED digital billboard in the US out of a total of 450,000 billboards nationwide. At $250,000 each the cost is prohibitive plus local, municipal and state permiting is becoming tougher and tougher.

Coke plans to add another 15 to 25.

In the morning the firm can advertise Minute Maid and then in the afternoon switch to Spint or Coke.

Great news for Coke Cola as now they have exclusive long term state-of-the-art presence in 27 diverse markets. Is Pepsi far behind? Or Miller beer?

What does this mean for property owners? For those 27 specific sites, if on leased land, walls or roofs, it looks like long term stability. Details were not disclosed. Much more to follow.

Bill McInerney
Outdoor Advertising Consultant.
617 816 3933

CBS OUTDOOR NEWS

2-19-10.  Business Week announced that CBS profits fell 57% on its

radio and outdoor writedowns.     Net CBS income delcined  in 4th

Quarter to $58.8 million ( 9 cents a share) from $136.1 million.

"The outdoor billboard unit operating income 97% to $ 1 Million...."   stated the BW article.

Heads should roll!!

During the easy-credit or so called boom-years, big media as CBS and  Clear Chanell  grossly overpaid

for most of its outdoor advertising inventory. They are now  paying the real price which is a major

financial drag on the entire company.


Big media companies don't have the in-house management to successfully operate  billboards: they lack

common sense know-how, agility and local  and regional advertising savvy.   They purchased just the

physical inventory and didn't absorb experienced outdoor management types.  Fatal mistake.

TV  isn't the same as the outdoor business.


They are to fat at the top and don't have "street sense" required in the businesss which requires

advertising income streams from national, local and regional diverse business firms.   Big LAZY

Billboard wants it the easy way and that is all income from just the big national firms.

Do I smell a stockholders revolt ?  Or will CBS now try to sell it's outdoor unit  to that deep-pocket, well

run French  based outdoor firm?  Or is it late for a sale??

Property owners need to be on the alert.  

Bill McInerney

Outdoor Advertising Consultant
617 816 3933