Industry veteran Mark Boidman recently stated that “the billboard audience is clearly back” and a “9% to 16% billboard income growth projection” should hold true for 2021. That’s a pretty bold outlook given the Covid-19 pandemic. So why is he so optimistic?
With social quarantines ending in 2021, more people will return to the road
The United States has suffered through a pandemic since March of 2020, and the resulting quarantine destroyed commuting and travel as everyone had to stay home. With a vaccine around the corner, the assumption is that travel will return to normal and that will make advertiser demand for billboards increase dramatically.
The focus on fiscal conservation favors billboards
Billboards have always had one huge strength: they are the least-expensive form of advertising. This has been true for over 100 years and has little odds of changing. With many advertisers trying to reduce costs during the pandemic, they are more focused than ever before on value for the dollar. And that favors billboards in their marketing mix.
There is a “burnout” right now with on-line platforms
While on-line advertising has gone from zero to dominant over the past several decades, the pandemic has caused Americans to overuse their computer and tablets and this has created a “burn-out” on these type of advertising resources. It’s a natural progression in all forms of entertainment – people overdo it and then lose interest.
Conclusion
Billboards are well positioned for a strong revenue boost in 2021 as the national pandemic should be ending and life returns to normal. The combination of originality, low cost and higher traffic bodes well for billboard revenues in the years ahead.