Startup cost
$26k–$300k
TRUiC Business Ideas
How to Start a Billboard Advertising Company
Decision Snapshot
Billboard Advertising
Idea Score
58
Profit margin
41%
Break-even
4 mo–12 mo
Time to launch
12 wk–36 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
Very high
Time commitment
Flexible
Part 1 - How to start a Billboard Advertising Company business - Background
Billboard advertising companies purchase or rent small lots of land to erect billboards that are used to display ads for their customers. Other types of outdoor billboard advertising include signage on public benches and buses. These businesses also buy billboards from other companies and resell the advertising space for a higher price. They perform a valuable community service by enabling property owners to earn income by leasing an unused portion of their land to provide advertising space for businesses.
Our guide is in 3 parts:
- Part 1 - How to start a Billboard Advertising business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening a billboard advertising company?
The cost of constructing a billboard can range from $26,000 to $300,000, which often requires financing from banks or, more often, an outdoor leasing company. In some states and cities, a license is required, the average cost of which is approximately $200 per year. To find out the requirements of your city, you can inquire at city hall. You’ll need to purchase zoning maps and a measuring device designed to measure long distances. A vehicle is also necessary for traveling to and from sites to gather measurements and perform regular maintenance.
What are the ongoing expenses for a billboard advertising company?
Ongoing expenses for this type of business include:
-
Property rental or lease costs
-
Liability insurance
-
Electricity costs for billboard lighting and electronic billboards
-
Maintenance and repairs
-
Construction costs for the erection of new billboards
-
Transportation to potential sites and meetings with business associates
Who is the target market?
Customers are business owners who want to increase public awareness of their goods, services, and locations. Clients may also be landowners seeking to make a profit by allowing advertising displays on their property by leasing a portion of it to your company.
How does a billboard advertising company make money?
A billboard advertising business makes money by selling outdoor advertising space on billboards, benches, or vehicles. Many also make money by selling their leases and permits to competitors for a profit. Prices can range from $5,000 to $200,000 or more, depending upon the location, the degree of visibility, and the amount of traffic it receives.
How much can you charge customers?
The amount you can charge customers depends on a number of factors, including the location and type of billboard. Billboards in areas with higher traffic are in greater demand than those with less visibility. Prices are also determined in part by the length of the contract with the advertising company. For regular billboards, prices can range from $1,500 to $100,000 per month. Electronic billboards rotate advertising for multiple customers. Small to medium sized billboards can earn $300 to $2000 per month, while large ones can command prices between $1500 and $30,000.
How much profit can a billboard advertising company make?
For the top four billboard advertising companies, the industry average for annual revenue in 2015 was 3.69 billion dollars. Profits generated by billboard companies can reach up to 50% before depreciation, taxes, amortization and interest. It commonly takes between 7 and 10 years to pay off the initial cost of the purchase of land and the construction of a billboard. Once that has been accomplished, profits increase significantly.
How can you make your business more profitable?
Creating and following a good business plan is one of the best ways to make your business more profitable. That plan should include expansion because many advertising companies require a minimum amount of billboards before they will agree to work with a new business. Another way to increase your profits is by designing the billboards rather than hiring another company for that part of the process.
Day-to-Day and Growth
What happens during a typical day at a billboard advertising company?
-
Meeting with business owners, real estate developers, graphic designers and advertisers
-
Researching local zoning laws to determine the best potential sites
-
Measuring land and billboard space
-
Negotiating land use contracts and prices for advertising
-
Overseeing the safe construction of regular and electronic billboards
-
Conducting inspections, performing maintenance and making necessary repairs
-
Bookkeeping and accounting
What are some skills and experiences that will help you build a successful billboard advertising company?
-
Communication and interpersonal skills for building strong business relationships and negotiating leasing contracts and advertising prices
-
Accounting skills for budgeting, accounts receivable and accounts payable
-
Computer skills for maintaining a website with information about your services and locations. There are classes available for learning these skills.
-
Graphic design skills for creating customized billboard advertising for customers. These skills can be acquired through classes as well.
What is the growth potential for a billboard advertising company?
Billboard advertising is a growth industry and there are many franchise opportunities available. Some provide extensive training, mentoring and ongoing support.
How and when to build a team
It is important to build a team before you start your business. Your initial team will consist of financiers, city and state officials, property owners, business owners, and advertising agencies. Some billboard advertising businesses also include graphic designers on their team. Maintenance personnel are also important team members.
Part 2 - Is a Billboard Advertising Company business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Billboard Advertising business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Billboard Advertising Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Billboard Advertising Company business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
-
Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
-
Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
-
Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
-
Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
-
Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
-
Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
-
Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
-
Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
-
Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.