Advertising/Billboards

The outdoor advertising industry is centered around the distribution and leasing of billboards. These billboards are large outdoor media signs found near busy highways and urban cities. Marketing firms use billboard advertising to showcase products and services and depending on the location can be quite expensive to rent space on.

Growth and Potential of the Industry

The Outdoor Advertising Association of America estimates that the outdoor advertising industry grew at 1.2 times the growth rate for the US Gross Domestic Product during the past quarter. Global Newswire reported revenues of $66.8 billion in 2022.

Characteristics of the Type of Land Needed

Is your property near a major highway? Any property that is near large transportation arteries provides the kind of high-density transit and pedestrian foot traffic that outdoor advertising companies want. 100 x 100 square feet. That’s all you may need to make as much money on billboard lease rates as you would on 10 acres by other means. Rooftop leases also apply here. For example, in New York City, billboard structures are developed on top of high rises that can be seen by commuter traffic on the various bridges.

Industry Terms

Approach: The measured distance from the point where an ad unit first becomes visible to the point where the words are no longer readable.

Billboard: Large advertisement displays that can be viewed from far distances, usually about 50 feet away. Billboards can be divided into bulletins, junior posters, posters, and spectaculars.

Bulletin: The biggest out of home advertisement structure. It usually measures 14′ x 48′.

CBSA (Core Based Statistical Area): Defined by the United States Office of Management and Budget, a metropolitan area within a larger market (e.g., DMA) containing a substantial population nucleus, together with adjacent communities having a high degree of economic and social integration with that core. CBSA’s are a standard geography for buying and selling media.

Commercial Audience: The estimated audience number – or people exposed to the actual advertisement.
Count Station: A portion of a road that displays a particular traffic pattern. They contain traffic estimates and general demographic composition of that traffic.

Daily Effective Circulation (DECs): The out of home advertising audience measurement system. It is the average number of people that drive by an ad that are potentially exposed to the display.

Exposure: The physiological or behavioral measurement of actual eye contact that people experience with an out of home advertising display. These are derived from the adjustment of the number of people that pass by who notice the advertisement.

Face: The surface of the unit display where the actual advertisement actually shows. An outdoor ad can have multiple faces that display in different directions. A landowner could greatly benefit if they own a piece of land where a billboard company could erect a multiple facing ad display.

Facing: The cardinal direction that the advertisement unit faces. Ex. A south facing bulletin is viewed by vehicles traveling north.

Off-Premises Sign: A billboard that advertises products or services that are not sold, made, or stored where the sign is actually located. An OOH display is an off-premises sign and is the type of sign a landowner would agree to in a billboard lease.

Out of Home Media (OOH): Any media format specifically intended to reach consumers outside the home.

Poster: A standardized poster format that usually measures 12’3″ x 24’6″ might also be referred to as a 30-Sheet Poster.

Spectacular: A bulletin that is larger than 14′ x 48′, uses special embellishments and designs, and is displayed at a prime location in a market.

Traffic Count: A record of the vehicles and pedestrians that pass a specific point. It is used to authenticate the circulation that passes by an advertisement structure.