Profitable Facts About Owning Billboards

Whether you own billboards in its digital or non-digital forms, the marketability and profitability from a billboard advertising can be a good income generating prospect. Companies usually engage in outdoor advertising using billboards and it has become an effective marketing strategy that allows marketers to introduce their brand to the thousands of motorists and travelers every day. You can purchase to own a billboard for your own advertising purposes or you can lease them to other vendors. Either way, you can profit from these undertakings because there is an income prospect in owning billboards either as an advertiser or as a lessor.

The potential profits for owning billboards

The billboard industry is growing and this usually emanates from the first step of simply owning the billboard signs instead of operating them. Billboard owners can already enjoy a lucrative business by simply leasing their signs to bigger marketing companies. The demand for a billboard space is undoubtedly high and if the billboard owner cannot maintain their billboards profitably, a new owner can easily take over to operate the same. There is a good income prospect in the billboard business and there is low risk of non-profitability even after bad management. An abandoned billboard can still be salvaged by the new owner with proper billboard design and improving sign faces. One does not necessarily have to operate the billboard as the owner. Leasing is a good way of generating income too without giving up your ownership. A billboard tenant will usually take over the maintenance and operation of the billboard while paying the lease price to the billboard owner.

The income cash flow from owning billboards

Owning a billboard provides large companies a regular income cash flow. The revenue generated by billboard companies may reach up to 40 to 50 percent before counting the depreciation, taxes, amortization and interest. The rate of income grows higher on highway billboards that may go higher as 60 percent of revenue. Rural billboards require lower maintenance that may involve repainting once a year, giving a higher profit than costs when operating them.

Analyzing the market value of billboards

One of the appealing things about owning billboards is on the high interests of prospective billboard tenants or buyers even on a dilapidated billboards. The common knowledge is that an old billboard already lose its appeal in generating income or that a billboard has no value until it is actually erected and being in operation. Unknown to many, small to big business owners are interested beyond these things. They are more interested about the permit and the site lease that is already in place before the billboard becomes operative. These are the most difficult to secure when owning a billboard and pursuing to buy or lease one that is already ready for use is more beneficial. The erection of the billboard and rehabilitating it usually becomes a secondary concern.

The market value of a billboard is usually influenced by the annual effective gross income or EGI of the billboard. This pertains to the actual revenue generated from the existing billboard and is also based on the market value of the nearby billboards. Rural billboards that are mounted on wood poles tend to generate a lower market value as compared to the city billboards that are mounted on steel support.