How to Start a Billboard Advertising Business: A Complete Guide

Have you ever driven down the highway and wondered who owns those giant billboards along the side of the road? Starting a billboard business can be a lucrative endeavor if you have an eye for marketing and aren't afraid of a little competition. The billboard industry generates over $6 billion in revenue each year in the U.S. alone.

If you're an entrepreneur looking for an outdoor advertising opportunity, here's how to start your very own billboard business.

The Billboard Advertising Market

The billboard advertising market targets a wide range of local and national businesses looking to reach drivers and pedestrians. Billboards are a mass market medium, meaning they are a broad way to reach a large number of people. However, billboards can also be used to target specific geographic areas or routes that a business's customers frequently travel.

The target audience for billboard advertising is extremely broad, encompassing all drivers and pedestrians in a given market. Billboards are best suited for businesses looking to build broad brand awareness or promote a specific product, service, or event to a large group of potential customers. The billboard industry works with small local businesses, large national brands, non-profits, and events of all types and sizes.

Your Billboard Product and Service

As a billboard business owner, your product is advertising space on your billboard signs. You sell the service of designing, printing, and displaying advertisements for your clients. To stand out, focus on providing excellent customer service, high-quality printing and design, and prime billboard locations that will give clients maximum exposure.

Billboard ads are consumed by the mass audience of drivers and pedestrians passing by your signs every day. You deliver the service by designing and installing your client's ads on your billboard faces according to their specifications and the contract terms you establish.

To develop your product, you need to invest in billboard signs, printing equipment, design software, and the skills to use them. You'll need to scout the best locations for your billboards based on traffic volume and flow. You should also set competitive prices for your ad space and services based on the going rates in your local market and the exposure offered by your specific billboard locations.

Economics and Finances of a Billboard Business

The costs to start a billboard business primarily include the physical billboard signs, printing equipment, installation and permitting fees, and ongoing maintenance expenses. The industry standard for pricing billboard advertising space is based on the "cost per thousand impressions" or CPM. This means the price is calculated based on the estimated number of people who will see the ad over the duration of the campaign.

For example, if your billboard is expected to get 30,000 impressions (views) in a month and you charge $3 CPM, your monthly ad rate would be $90. The CPM rate depends on factors like billboard size, location, traffic, and local market rates. You'll need to set a CPM rate that covers your costs and leaves room for a profit margin.

Your costs include the billboard sign which can range from $1,500 up to $100,000 or more for a large digital billboard. Printing equipment like large format printers can cost between $5,000 to $50,000. You'll also need installation gear, design software, and a vehicle to service your billboard locations. Permitting and zoning applications typically cost a few hundred to a few thousand dollars per sign.

Ongoing costs include printing new ads, cleaning and maintenance, land leases or rents, utilities, insurance, and payroll. These overhead costs, combined with your initial capital expenses, make up your total cost of goods sold. By pricing your ad space at a premium above your COGS, you can operate a profitable billboard business. However, you'll need to continually work to keep costs under control and maintain a steady flow of new advertising clients.

Marketing Your Billboard Business

To attract new billboard advertising clients, you'll need to implement an effective marketing strategy. Some of the best ways to market a billboard company include:

Search Engine Optimization (SEO) - Optimize your business website to rank higher in search results for terms like "billboard advertising" and "outdoor advertising". Provide content about your services, locations, and pricing.

Social Media Marketing - Build a social media presence on platforms like Facebook, Instagram, and LinkedIn to raise brand awareness and engage potential clients. Post photos of your billboards, share industry news, and promote your services.

Direct Outreach - Contact local businesses directly to pitch your billboard advertising services. Explain the benefits of billboard ads and provide details about your sign locations, specs, and pricing. Offer special introductory deals and discounts to win new clients.

Networking - Join your local chamber of commerce and attend industry events to network with business owners and build personal connections. Look for opportunities to sponsor local events, charity fundraisers, and community organizations to increase visibility and goodwill.

Advertising - Use other marketing channels like print, radio, and online advertising to promote your billboard company to a wide audience. Consider advertising on industry websites and in trade publications to reach businesses specifically looking for outdoor advertising services.

Referral Programs - Offer existing clients a discount or other incentive to refer new business your way. Satisfied clients can be one of your best sources for word-of-mouth marketing and referrals. Provide excellent service to keep your current customers happy and willing to recommend you.

Sales Strategies and Processes

To sell billboard advertising space, you need to implement effective sales strategies to find new clients and close deals. Some of the best sales strategies for a billboard company include:

Cold Calling - Call local businesses from targeted lists to pitch your billboard services over the phone. Explain the benefits of billboard advertising to the business owner or marketing manager and try to schedule an in-person meeting.

In-Person Meetings - Meet face to face with interested prospects to give a full presentation about your billboard company. Provide details on locations, sign specs, design services, pricing, and any current promotions. Ask questions to determine if the client is a good fit and their key advertising goals.

Proposals - For serious prospects, prepare a customized proposal outlining an advertising solution tailored to their needs and budget. Include details like sign locations, duration of the campaign, design mockups, pricing, and terms. Follow up to answer any questions and try to close the deal.

Negotiation - Be prepared to negotiate pricing, contract terms, and the overall scope of services to meet the client's needs while still maintaining profitability. Look for opportunities to provide value-added services and build a long-term relationship with the client.

Closing - Ask for the sale and finalize the agreement. Have the client sign a contract that specifies the details of the advertising campaign including locations, duration, pricing, design, installation, and removal. Collect a deposit and payment schedule as outlined in your contract terms.

Account Management - Provide excellent ongoing service and account management to keep your clients happy and renewing their contracts. Check on the billboard installations regularly and address any needed maintenance or repairs promptly. Reach out to clients before their current contract term ends to discuss renewal. Offer discounts and incentives for long-term or expanded advertising campaigns.

Operations and Execution

To operate a billboard business, you need to handle the installation and maintenance of your billboard signs, design and print client ads, service active advertising accounts, and ensure compliance with all local regulations. Some of the key operational tasks include:

Scouting and acquiring billboard locations - Work with landowners and local authorities to find suitable spots for your billboard signs based on zoning laws and maximum exposure. Negotiate land lease or purchase agreements to secure locations.

Obtaining permits - Apply for permits, licenses, and zoning variances required to install and operate billboards in your city or county. Requirements vary in different areas, so check with local government offices.

Billboard installation - Transport and construct your billboard signs on site with the proper equipment and crew. Ensure the installation meets all safety and structural standards.

Client ad design - Work with new advertising clients to design eye-catching ads tailored to their brand and campaign goals. Provide options for them to choose from and make any requested changes.

Ad printing - Print vinyl or digital ads in-house or through a third-party printer. Make sure the final ads meet the correct sizing and resolution specifications for your billboard signs.

Ad installation and removal - Place new ad prints onto your billboard faces at the start of a new advertising campaign and remove the previous ads. Recycle or dispose of used ad materials properly.

Maintenance and repairs - Conduct regular inspections of your billboard locations and signs. Address any damage, graffiti, or needed repairs promptly to keep the signs in good working condition.

Compliance monitoring - Ensure your billboard company follows all laws and regulations regarding outdoor advertising. Renew permits and zoning requirements on schedule and address any compliance issues right away.

Customer service - Provide assistance to your advertising clients to keep them satisfied and renewing contracts. Respond to calls and questions promptly and address any concerns with their billboard ads or locations.

Legal Requirements and Regulations

Billboard businesses must follow all federal, state, and local laws regarding outdoor advertising. Requirements can vary significantly between different areas, so you need to research the specific regulations in your city or county. Failure to comply with these laws can result in legal penalties including fines, forced removal of billboards, and even criminal charges.

Some of the legal issues you must consider include:

Zoning laws - Billboards are only permitted in areas zoned for commercial or industrial use. Residential areas typically prohibit billboard advertising. Check with your local planning department for details on zoning in your city.

Permitting - In most areas, permits are required to construct and operate billboards. Apply for all necessary permits before installation and renew them on schedule to avoid penalties.

Size and height restrictions - Regulations control the maximum size, height, and proximity to roadways allowed for billboards. Make sure your signs meet the specific size limits in your location.

Spacing requirements - Laws dictate a minimum distance between billboards to prevent oversaturation. Check the spacing rules in your area to ensure your billboard locations meet the minimum separation distances.

Content restrictions - Some billboard content like alcohol, tobacco, and adult entertainment ads may be prohibited or have additional restrictions. Familiarize yourself with the content rules to avoid issues.

Driver distraction - Billboards must not distract or obstruct drivers' vision. They cannot have flashing or moving parts and must be a safe distance from roadways based on speed limits.

Other laws - Additional federal and state laws like the Highway Beautification Act also apply to billboard businesses. Failure to follow these laws can lead to legal consequences, so thorough research into the regulations is critical before starting your business.

Conclusion: Starting a Successful Billboard Business

Starting a billboard business can be highly rewarding if you go in with realistic expectations. Billboard advertising provides a vital service to local businesses looking to reach new customers. By securing prime locations, providing quality design and printing, and maintaining a high level of customer service, you can build a profitable billboard company. However, you need to invest significant time into researching regulations, acquiring proper permits, and scouting the best spots for your signs. Billboard advertising also faces competition from digital marketing channels, so you must work to keep costs low and diversify your client base. With hard work and persistence, you can overcome these challenges to build a thriving billboard business.