Billboard business can be extremely profitable if you are able to chalk out effective strategies and implement them professionally. This article will serve as a guide for understanding how to start a billboard business.
These days effective advertising campaigns are a must for businesses to flourish. Due to rising competition, we see many corporate houses increasing their advertising budgets considerably. The main aim here is to attract maximum customers and make the company’s product more and more popular. Apart from newspaper advertising, Internet advertising and television advertising, billboard advertising has emerged as one of the most effective methods to reach out to the common public.
Advertisers prefer billboards because of the following reasons:
- Billboards stay for several months and hence the company will be able to attract attention of more potential customers or clients
- The expenses for such ads is less as compared to television ads
For all those who wish to start a billboard advertising business, understanding its business model perfectly is imperative. The business model is simple, you will be looking for land, taking it on lease from land owners, constructing billboards and then displaying ads of companies on it in return of monthly rent. So, more the number of boards and clients you have, more would be your total turnover. Here’s how you go about starting your own billboard business.
Conduct a Market Research
Market research is imperative. Billboard rentals vary a lot as per the location and hence you need to be aware of the billboard rental rates in your area to start off with this business. This can be done by meeting government authorities and experienced advertising professionals. From this initial survey, you will be able to gauge the approximate revenue that you will be able to generate.
Look for Excellent Locations
The next step is to look for really good locations which will ensure maximum visibility. Look for prime locations where there is a big crowd or busy intersections because the ad viewers would be maximum here. For setting up the billboard, you will have to first sign a leasing agreement with the property owners.
Be Aware of Federal Laws Regarding Billboards
Billboard erection and advertising is certainly not possible in all areas in your city. There are strict Federal laws regarding the areas which can have billboard and which can’t. So, as a businessman in the advertising sector, you need to be aware of these laws so that you do not face objections from authorities. There are places where you need to obtain a state license to set up the billboard. For the license, you may have to shell out around $200. Take help from a legal expert and get details of the Highway Beautification Act from him, if you have less knowledge of legal issues.
Proper billboard construction is the next obvious step once land and legal issues are sorted out. You can do it yourself if you have some prior construction experience or simply hire a contractor who will do the needful for you. In today’s times, LED billboards have become very popular and if you have them, you stand to gain more advertisers. Also, vinyl and electronic billboards are acceptable in the industry. Don’t forget to supervise the construction work and get it done as per your instructions.
For billboard designing, you can make use Photoshop or other software to give it a good look. The ad has to remain on the billboard even in conditions like wind, rain or snow. Some big players in this business are known to take assistance from graphic artists. The content in the advertisement should ideally be short for quick understanding of the passers-by.
Pricing Your Service
Pricing is probably the most important point to consider. The advertising costs can be anything between $650 to $2500 depending on the location. Initially, to establish your business, you need to charge less than your competitors. Later on, you can revise your fee structure for billboard ads.
Have Business Insurance
There are some risks associated with every business and billboard advertising is no exception. Some natural calamities or accidents can destroy your billboard and cause financial loss. In such cases, you can recover your losses considerably, if you have proper business insurance. So, get your business insured from an insurance major to cover any eventuality.
In any business,you should be prepared to bear losses initially, and try your best to break even as quickly as possible to see high profits later on. By implementing good strategies and working hard, I am sure you will be able to become a successful advertising entrepreneur.