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

CRAM DOWN TIME? Unscrupulos Big Billboard sinks to new low!

Febuary 18, 2010

Some major outdoor advertising billboard firms in  have sunk to a new low!

Out-of-the-blue they want, and even demand to greatly reduce contract outdoor advertsing payments to property owners  across the country  It's called a "cram down

In the commercial real estate biz  many national and regional retail firms have successfully negotiated their prime space payments downward because of buisiness condtions. But shopping center and mall owners having  many other tenant  an and did make some "concessions."

Unscrupulous "Big Billboard" appears to be attempting to take unfair and unjustied advantage of the overall state of the economy at the expense of individual property owners.

Don't accept a "cram down!"

Big billboard  fat-cat, over-paid empoloyees and stockholders will benefit  at your loss!

Don't panic or cave-in  should your outdoor billboard firm communciate with you asking or demanding you to agree to  their unwarrent and often times arbitrary demands.

Yes, at some times and under some "rare" conditions  "temporary relief" in the form of some "minor concessions"  might be justified.   

I can help.  Keep in mind that each billboard matter must be analyzed on its own unique merits.
But much more to follow on this subject.

Bill McInerney
Outdoor Advertising Consultant
617-816-3933

PORN ON BILLBOARD !! NIMBY"S DELIGHT!

The global Outdoor Advertsing Billboard Business just got shocked out of it's mighty complancy!

The mighty digital billboard revolution has hit a major bump in the road of progess.  And it happened in a city  well known fpr "revolutions,"  namely Moskow, Russia!

Yes, Porn on a Billboard.    How would that fly in Peroria, St Louis, or even Boston? 

This was reported on 1-18/2010 by the Internet blog, The Hackers News Network."  and has been verified by several other sites including, OneIndia.

According to published reports, " An outdoor electronic or television billboard in Moskow was recently rigged to show porn duing rush hour. A massive trraffic jam occured. The porn was displaved for about 20 mniytes even thogu the operatin realized what happened after 3 minutes  The opetrator could nbot locate the "off swich or botton!"

Another source reported, "It was eitherr an act of holliganism o were from a rival company.(sic) " 
The incident occured on Friday, January 15, 2010.  Heads to roll in Moscow!!

I have not seen anyting thus far reported on US main media ineither  print or internet sites.

Tthe  rapidly growning number of NIMBY's who oppose Digital Billboards  anywhere will probably use this incident at public hearings  across the US for years to come.  Just thinbk of the public safety traffic issues??



Bill McInerney
Outdoor Advertising Billboard Consultant

PS.  I have numerous clients actively seeking viable billboard sites, anywhere,  on major highway, properly zoned, and with  high traffic counts and affluent demographics.  Callme now 617-816-3933   






Comprehenvise Outdoor-Billboard Consulting Services for Proprty Owners.

Citadel Broadcasting files for Chapter 11

Citadel Broadcasting Corp, The natrion's third-largest radio broadcasting firm, filed for Chapter 11 bankruptcy protection on Sunday (12-19-09) in an effort to restructure its hefty debt load as it continues to face declining advertising revenue.

The firm owns 224 radio stations & is home to several syndicated hosts including: Don Imus, Rush Limbaugh, Joe Scarborough and Mark Levin.

Much of its debt burden comes from its $ 2.7 billion purchase of ABC  radio from Walt Disney Co in 2007.

The entire radio industry faces many major  advertising problems and this is not good news for Clear Channel.

A Wild TIme For Outdoor

The great Outdoor Advertising Industry and business is under siege from all sides.

The new emerging DANGER for property owners leasing to big and small billboard firms is that they will try to take advantage  of present conditions and will attempt to pass along their mis management losses by paying less and less for better and better locations.  Don't even listen to them!

NEWS OF NOTE:
 #1. Media Life on 12-15-09 announed that billboard advertsing revenue is down 17.2% for the the Third Quarter of 2009. This is on top of an 18% slid inthe first and 2rd Quarter of 2009. A drop of 35.2% has to hurt especially those firms with big debt and poor management and a lack of the outdoor business.

#2. Toronto paaeed a new Billboard tax! This first ever muncipal tax is based on advertising revenue! It's now sending shock waves across the advertising world and every City Hall in the US which is desperate for tax revenue.  Proeprty Owners review your leases NOW!

#3. The US Supreme Court decined to hear a challenge to the L.A. billboard ban. Thisis very bad news for digital boards   The growing "anti-digital billboard movement"  is gathering support fromlaw enforcement relative to traffic safety issues.

# 4. Big Billboard FInancial Distress.  On 12-18-09 Moody's dropped the bond rating on Clear Channell. Thisis not good news for C.C. who has $22 billion in debt and now wants an additional $750 million debt.

Good News:
Many cash- mega-rich International Outdoor firms have expressed interest in buying all or parts of some billboard firms in the U.S. Expect changes of ownership in 2010!

Some outdoor firms in 2010 willhave to divest itself of assets to stay afloat.  Do  you have a Right of First Refusal to buy the Billboard Assets ( Structure and all permits) in your lease? 

Property owners who lease to billboard or outdoor advertising firms  have  a great asset!  They just don't make good locations anymore.   

If you have any questions concerning the outdoor billboard business, the  "true" value of your location call me at anytime.  Remember, with my billboard outdoor advertsing insider experience,  I know what the billboard firems don't  want you to know!  I work only for proeprty Owners.

Sincerely,

Bill McInerney

Do you want to turn your existing outdoor billboard lease into cash?   I have serious investors.
WANTED: Prime, high traffic billboard locations anywhere!






Comprehenvise Outdoor-Billboard COnsulting Services for Proprty Owners.