Some billboards require a lot of effort to find an advertiser, and with other signs the advertisers flock to you. So what do you do when there’s a bunch of advertisers wanting your sign location? In this Billboard Mastery podcast we’re going to review some strategies to maximize your income when you’ve come across a really hot, in-demand location.
Episode 29: What To Do When Everybody Wants Your Sign Transcript
It's great to be popular, but being highly in demand can often be a problem for a billboard owner. We're not used to being someone who is sought after by number of advertisers, we're typically more prone to be out there trying to find the invest the advertiser that fits on the sign. This is Frank Rolfe, the Billboard Mastery podcast, we're going to talk about what happens when you have a billboard that everybody wants. Now let's first talk about what makes a billboard so very desirable. In my career, I often would find signs that were uniquely uniquely attractive for advertising. The first one I ever had, that was that manner, was a giant sign that I built in Garland, Texas 120 foot tall, 20 by 60. face, it stood out above all signs, literally, it was two times the size and two times the height of all of the competitors. As a result, everybody wanted to be on that side. I had another one, when I build a sign in Denton, which had an absolutely killer head on lengthy exposure from the street, the street curved to the left. And as you were driving that sign stuck in the middle of your windshield for an insanely long period of time, totally clear view, not a tree, not a powerline, nothing to block that visibility. When you have those kinds of signs, once a stand out from the crowd coupled with terrific locations, maybe in an area where there's no other signs allowed, maybe an area where you've got so many advertisers at the next exit, suddenly realize you have something special, this is not a normal sign, and you can't really treat it like a normal sign. When you have that type of property, what you're going to want to do is you're gonna want to figure out how do I maximize? How do I harness this unique level of demand? Well, the first thing you can do is obviously see if you've got lots of advertisers and want to be on there. How many advertisers can you stick, how many can be on there one time? Well, the natural obviously, resource will be an LED sign. Therefore, I can sell the ad space, perhaps eight seconds per advertiser. And in some cases, that is the best thing to do. However, as we all know, led signs can be very, very expensive. And they don't last forever, you have a big capital call every seven to 10 years to replace that led side. And led it's hard to rent the space, it's kind of a unique item, it's like having almost a billboard radio station. And it may be just beyond your economic capability, hundreds of 1000s of dollars are required to build an LED side. And you may just say, Well, I don't want to take that much risk and have that much capital. Another option is do what's called tri vision. This is an older technology that stems all the way back into the 1980s. It's basically three panels, magian triangular panels on the side that rotate every every so many seconds or minutes based on how we have it set up. So in that way, you can have three advertisers on the side. So there's an option, not nearly as expensive as LED. Or we could also just have two advertisers on the side, we can take the side and split it right down the middle. And we can break it instead of having 114 by 48 phase, for example, we could have to 14 by 24 faces. You see that all across town. And there's certainly nothing wrong with that. If you were going to read the whole sign to an advertiser for $2,000 a month, and you find that you can rent chop the sign in half, and it's rent each side for 1800 a month. So much demand well 3600 a way better than 2000. So clearly, you would do that. So that's the first thing you have to question is can I go ahead and put multiple advertisers on the side of the answer is yes, that's one way to maximize your rent. Another way is just to ask the moon for the ad space itself. All the other signs may be charging $2,000 a month and you say my sign is special. And I want $5,000 a month just for that one face. That's what I did in my giant sign I did on my 120 foot tall 20 by 60. My ad ran on that sign was over twice what all the other signs were charging. I was twice as big twice as tall and it cost twice as much. So that's another option. You can charge more for your sign than anybody else is. So that's attractive. What else can you do with the side is high highly in demand? Well, you can offer other terms that you find attractive beyond just price. You might say on a really hot sign. Well
if you want the sign, here's the deal. You have to sign a three year lease or a four year lease or whatever length you want. And you might say, well, if you want this sign, I'm going to require you to pay a year in advance, or two years in advance. Or you can write down reduce down the amount of cost you have in by telling the advertiser, I'm only going to change out your ad, once every 18 months. The bottom line is you hold all the cards, when you have those very, very hot signs. The problem is a lot of vendors don't take advantage of it. So people will build a sign, it's got uniquely great visibility curve in the road Hall big, everything's great, they'll charge the same range as they do on every other side. That's not smart. So when you have a unique site with lots of demand, you need to acknowledge that you need to say, Wow, I've got a hot property here. And since I have such a hot property, I demand that I get more money for it. Because mine is unique. Mine is highly desirable. Mine is one that all advertisers want. And if you play your cards, right, you can achieve that. But you have to understand it on the front end and plan accordingly. Also, don't forget, if you have a sign that's better than the rest to get that location, you can also pay more money for it. A lot of times people don't realize that if you're going to go ahead and charge twice the rate, well, you can pi pay twice the grand red tail, they may help you get that signed to begin with. Now, what are the attributes when I'm looking at building assign that would make me say, Well, I think this one is unique, number one, scarcity, have any signs or are there on that road. And if you say well, there's only two, well, then, you know, if you build one, then you each have a third of the entire market. So scarcity is important. Another one is size and height. signs that are bigger signs that are taller. Well, those are also highly more prized by advertisers. So that's definitely a good side to anyone as far as a sign that's going to be attractive to people. Another one is unbelievable visibility curve and the roads are are by far the outstanding example. The best signs in the United States by far are those that as you're driving down the highway sit right in the middle of your windshield for long periods of time. That way the advertiser believes his ad is seen and seen and seen and seen and seen and seen, the impact of visibility might be five times more, I think my sign in Denton, honestly, considering 500 feet is the normal length of time that was exposed. I think that side was maybe 10 times longer, you could literally see that side for about a mile away, that you couldn't read the couldn't read the words on it. That's a problem. But otherwise, you can see it and you and your brain started to wonder what's that thing, say when you were really far back. Also, when you have signs that are really in demand, don't forget you have options even if you're a small operator with only a handful of signs, those really hot signs, you can go to ad agency was with those you can hit advertisers, you normally wouldn't hit with those things. And you'll still find lots of demand. At the end of the day advertisers they're not impressed by the size of the sign company. They're impressed by the quality of the Billboard, if you have something that's exceptional, then they're gonna look at your offering as being better than all the others. They don't care that you may only have three billboards and you're competing with Lamar clearchannel who have 1000s. The bottom line to it all is having a highly in demand sign is great. It's wonderful. relish it, embrace it, harness that firepower to make that sign the most profitable. It can be. This is Frank Rolfe Billboard Mastery podcast. Hope you enjoyed this. Talk to you again soon.