How to Start a Billboard Advertising Business

Nothing beats the level of visibility that advertising on a billboard can bring. Starting a billboard advertising business could prove lucrative.

Step 1
Research local billboard advertising rates and compare them against anticipated business expenses, such as insurance, billboard construction, lighting costs, permits and taxes to ensure profitability. Expect to charge about $800 to $5,000 per month, or $200 to $300 per month in a small town, depending on the visibility and type of billboard. According to Frank Rolfe of Nuwire Investor, your ground rent should not exceed 20 percent of your revenue.

Step 2
Contact local zoning authorities to learn the legalities governing billboards in your county and surrounding counties. Electronic signs may be prohibited in certain areas due to their light emissions. They also may have strict guidelines on the display time duration between each ad. You may be required to obtain a permit from your state’s department of transportation.

Related Reading: How to Start an Advertising Sales Business

Step 3
While you won’t be able to charge as much for your billboard as you would for one better situated, as the city expands, eventually your billboard may get great visibility. You can opt to purchase billboard signs, ground leases and permits from established companies.

Step 4
Consult with a lawyer prior to signing any leases to help you draw up the contract. Determine the percentage going to the property owner. When developing contracts for your clients, detail the duration of the ad, design specifications, your maintenance responsibilities and penalties for breaking the contract.

Step 5
Hire a billboard company to construct your billboard. An electronic billboard allows you to advertise more than one company at a time, potentially increasing the revenue that can be earned from one billboard. At the same time, advertisers may not wish to share an electronic billboard, which changes ads every 10 seconds.

Step 6
Invest in graphic software, such as Photoshop, if you have design skills, or hire a graphic artist to work with clients in designing the billboards signs. Create a sample book of your designs to present to potential clients. Develop short, succinct, colorful, bold, eye-catching signs that drivers can’t miss.

Step 7
Develop competitive rates. Determine your minimum and maximum rental duration. Offer discounts for longer terms.

Step 8
Obtain a basic liability insurance policy.

Things Needed

Business plan
Permits
Billboard signs
Software
Contracts

Starting a billboard advertising business could prove lucrative. Research local billboard advertising rates and compare them against anticipated business expenses, such as insurance, billboard construction, lighting costs, permits and taxes to ensure profitability. While you won’t be able to charge as much for your billboard as you would for one better situated, as the city expands, eventually your billboard may get great visibility. Hire a billboard company to construct your billboard. An electronic billboard allows you to advertise more than one company at a time, potentially increasing the revenue that can be earned from one billboard.


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