Billboard advertising has long been a prominent medium for reaching a broad audience, particularly in high-traffic areas like Sunset Boulevard. The major companies in the industry are Clear Channel Outdoor, Lamar, Orange Barrel Media, and Outfront. Yves Saint Laurent’s Candy Glaze campaign features a prominent billboard on the Mondrian in West Hollywood, managed by Branded Cities, a digital out-of-home media company. Chloe's billboard, overseen by Orange Barrel Media, is strategically placed to capture attention, benefiting from the company's extensive experience in the industry since 2004. Prada partners with Outfront, a leading media company known for its creative excellence, and data-driven approach to transforming the advertising landscape. The cost of these billboard advertisements varies based on several key factors, including location and duration of display which play a role in each company's pricing models.
The location of a billboard plays a crucial role in determining its price. Billboards in high-traffic areas such as Sunset Blvd command higher prices due to their increased visibility and the large number of viewers they attract. For example, a full-size billboard on Sunset can cost between $30,000 and $100,000 per month, reflecting its prime location and high exposure potential.
The time an ad will be displayed on a billboard also affects its pricing. Short-term placements, which are often used for specific events, tend to be more expensive on a per-month basis compared to long-term rentals. Long-term placements may offer reduced rates for extended exposure. A prime example would be Kylie Cosmetics and Kylie Skin billboard located on 8500 Santa Monica Blvd in West Hollywood, which was recently demolished as of June 2024 for redevelopment of the entire property, a mix-use six story featuring 30 units and 3,627 square feet
of retail commercial space. Kylie Cosmetics and Kylie Skin were spending approximately one million a year just on this one billboard. Presenting a new opportunity for real estate investors to take in some extra income.
As technology advances, digital billboards have become increasingly popular to use by companies over traditional ones. Although they offer dynamic and engaging content, digital billboards are more complex and costly to operate. Expenses include not only the construction hardware but also production and software costs for the advertisements. Monthly operating costs can range from $3,000 to $9,000. However, their potential to distract drivers has led some cities to impose bans on them.
A billboard on the property can increase its market value. Prospective buyers may be attracted by the potential revenue from a billboard advertisement. The addition of a billboard can provide a new revenue stream by leasing the space to advertisers looking to promote their business.
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