Owning a billboard can be extremely profitable, generating between $1,000 and $100,000+ per location. Small to medium sized billboards earn $300 to $2,000 per month, while large billboards command $1,500 to $30,000 per month based on factors like location and format. Digital billboards in particular can pull in premium prices.
Starting a Billboard Business
To set up a billboard business, you need to determine the type (traditional, digital, mobile), find a high-traffic location, obtain permits, negotiate ground leases, and solicit advertisers. Costs vary widely, but renting physical billboards averages $750-$1,500 per month in rural areas, $1,500-$2,000 in small cities, and $14,000+ in major markets. Digital billboards range from $1,200 to over $15,000 per month. Key factors setting rates include impressions and demographics.
Investment & ROI
- Investment Potential: Investing in billboards can be a lucrative venture with potential for growth. They offer repeated exposure and have remained a strong advertising platform even with changes in technology.
- Startup Challenges: Starting a billboard company involves challenges like finding and securing prime locations, having the necessary capital, and finding advertisers. An alternative is to invest in or acquire an existing company.
- Costs: Prices range from $1,000 in rural areas to over $150,000 for large digital displays in cities. Fees for permits are additional costs to consider.
- Return on Investment: A 14 by 48 foot billboard can generate a 40% annual return. With a $40,000 construction cost and $2,500 per month revenue, expenses of $1,145 per month result in $16,260 annual cash flow.
Billboard companies may reach a revenue growth rate as high as 60 percent on highway billboards. Outdoor advertising statistics show a 497% ROI; advertisers see a return of $6 for every $1 spent.
Advertising and Maintenance
In the end, billboards reach masses of potential customers. With the right approach, billboards offer lucrative passive income potential. It’s important to carefully weigh costs, locations, formats and maintenance needs when buying.
Return on Investment Statistics
Outdoor Advertising ROI Statistics. Billboards have an astounding 497% return on investment, according to the Out of Home Advertising Association of America (OAAA). Billboard advertisers see a return of $6 for every $1 they spend on advertising, that same study found.
Additional Information
- Billboard Heights: A typical billboard is twelve feet high with an upper height twenty-five feet off the ground. Sizes range from twenty-five to forty-eight feet wide and may take the form of bulletins or poster panels.
- ROI Improvement: Research and planning are crucial to attain an ROI from billboard ads ranging from 3:1 to 5:1. Adding a call to action with a unique QR code can track conversions.
Billboard Advertising Costs
Billboard ads cost vary based on the estimated reach, total traffic, and location. The service provider charges monthly, ranging from $250 in rural areas to $50,000 in high traffic cities. The average billboard advertising cost is about a $850 monthly rate. Digital billboards may cost a little higher than traditional ones.