The US outdoor advertising industry got off to a strong start in 2015 with 4.7% revenue growth in the first quarter of 2015 according to the OAAA. Revenue growth occurred in billboard, transit and street furniture and in 9 of the 10 product categories . The improvement in outdoor revenues […]
Billboard Loans Blog
Four Things Your Outdoor Advertising Website Needs
I review lots of outdoor websites, and the best sites have at least four things in common. 1. Contact Information: A good website should give an email address, phone number, and physical address for the company. Contact forms are used by a number of sites, but though they offer convenience, they lack the […]
How Do You Power a Sign Without Power?
One of our clients owns a billboard in an area without power, where it would cost $11,000 just to bring power in to the sign. His solution was to use solar energy. He put together a system using regular 95 watt LED lights, two 6-volt batteries, and two solar panels. […]
A digital sign installation goes wrong.
This May 12, 2015 daily mail article talks about a woman injured when a Clear Channel digital sign fell on her in London. The digital sign was attached to a brick building rather than a monopole. Looks to me like the sign pulled right off the bricks. Digital signs are […]
Is Landmark Dividend a Threat?
Several of our clients have been asking us about Landmark Dividend. Landmark Dividend (https://www.landmarkdividend.com/) and its public subsidiary Landmark Infrastructure Partners (http://www.landmarkmlp.com/index.html), focus on acquiring ground leases for billboards, towers, and wind turbines. Landmark is aggressively seeking to purchase billboard leases from land owners for typically 8-10 times annual lease […]
Five Questions for Darrin Friskney, Watchfire
Watchfire recently announced a ten-year uniformity guarantee and replacement parts warranty on their MX Class digital billboards. You can read the press release here. I interviewed Darrin Friskney, Vice President of Digital Outdoor and Marketing to learn more. Darrin’s contact info is: [email protected], (317) 650-7301 1. Darrin, tell us a little […]
Accounting for a 10 Year Digital Sign Life In A Land Lease.
Most billboard companies fail to account for sign replacement expenses in their projections. This is not a big issues with static boards which last 40 years. It matters however, with digital signs because they have a useful life of 100,000 hours or 11.5 years. If you exclude replacement costs you […]
Annual Lease Inflators Impact Billboard Values
The quickest way to destroy the value of a billboard is to agree to a bad lease with a high fixed minimum lease inflator. Inflation has averaged 2%/year for the past 10 years. Outdoor revenues have grown at approximately 1.8%/year for the past 10 years. If you agree to an […]
Which is better? A billboard loan or a billboard lease?
Is is better to finance your billboard or digital sign with a bank loan or with a financing lease? It depends on your objectives. A billboard loan is better if: You want long term financing (10 years or more). Billboard loans have terms of 10-15 years versus a 5-7 year […]
Outdoor Values March 2015
Public outdoor values have been increasing. The three US outdoor companies are valued at 4.4 times revenues and 14.2 times cashflow as the following table demonstrates. Enterprise Value/Revenue March 2015 Clear Channel Revenue Multiple 2.83 Lamar Revenue Multiple 5.84 Outfront Revenue Multiple 4.65 Average Revenue Multiple 4.44 […]
