Marketing with Billboards may likely have more benefits than simply spreading the message!
Many will recall that one billboard on the side of the road that they always see on the way to work, the beach, or back to college. For many, those billboards are anchoring memories used as guideposts in answering the question of whether “we are there yet” or not. With the rise of the internet, social media, and video postings that reach thousands of people in seconds, many marketeers may have chalked the billboard up for dead, but there are three compelling facts that keep billboards more than relevant even in today’s modern age. Billboards are just there and there is no way not to see them in many cases, they work with or without power, and they have the ability to improve the bottom line by leveraging the power of depreciation.
When one posts a billboard or advertises on one, whatever it is that one wants to say is surely being said thousands of times a day (unless the chosen billboard is the worst in town with a nonexistent traffic count). While the true origin of billboards may never be known with such certainty as to allow one to specifically recognize some ancient Phoenician who carved the first advertisement of his wares on a chunk of stone outside the harbor, one thing is for sure, billboards are an ancient strategy that have evolved to the modern day with each stroke of a marketeer’s genius. Once one has their billboard, has agonized over what message it will convey twenty-four hours a day, put that message on a huge series of vinyl sheets, and paid top dollar to a skilled worker who climbs high above the ground to place a message informing the world of a new and exciting ware or service, what then? In most cases nothing happens then; one simply pays the lease payment and has the sign refreshed on a regular basis while waiting for the phone to ring or the email to fill up. Billboards, once put into action, are relatively low maintenance as they stand by the road and spread the word through wind, rain, and snow.
Billboards are great because they do not require a human to babysit them like social media accounts do, and more importantly because billboards do not require power to function. Yes, most billboards have lights so they can be seen at night, some are digital, and some have revolving panels that change advertisements on a regular basis, but generally even if the power goes out, a billboard is still useful to some degree. Do billboards have a power bill? That depends on whether one owns the billboard, leases it, or if it even has lights to begin with. In most cases, billboards will have lights where permitted by state law and local ordinances, but some billboards may not have power or lights at all. If one has a billboard with lights and it is owned, yes there will most likely be a power bill, that will in most cases be less than a trip to the local grocery store, if one leases a billboard then one may either have to establish their own power account or the lessor may just pay the power bill out of the lease payment they receive. In any event, if the power goes out, and as long as the great lightbulb in the sky is turned on, billboards are still in business and their message is being spread.
Billboards are most likely owned by business structures whether that is a limited liability company, a corporation, or some other less sophisticated business entity. The question of whether billboards are significant sources of depreciation, and by extension capital growth, depends on several factors that one should thoroughly discuss with their accountant and their attorney. Some of the discussion one should have with their accountant and attorney should center around buying versus renting or leasing a billboard if one is interested in the prospect of depreciable assets that may also generate future capital growth while increasing marketing efforts. In many cases, the company’s financial position will dictate the advantages of buying versus leasing and whether buying a billboard or purchasing land, permitting, erecting, and using a billboard has advantages over leasing. In the same vein, one would likely be well-served to discuss the possibility of depreciation recapture with their accountant and attorney as future growth is great, but if one were to hypothetically own, depreciate, and then sell such a billboard for an amount in excess of book value, depreciation recapture may be a conversational point of interest between one and their accountant and attorney.
Billboards may seem antiquated in terms of market reach in today’s world, but they likely have an effective means of deployment when one looks beyond their superficial utility as a marketing strategy. If a business has the budget and inclination for marketing with billboards, one should likely start with conversations within their business then branch out and discuss the same with their attorneys and accountants before making the plunge. Billboards are effective in conveying a message 24/7, they require no power for effective deployment (but optimally one should likely spring for the lights and the usually reasonable power bill), and they can possibly have tax advantages that one should discuss with their accountant and attorney, one must bear in mind that billboards may be better suited for some business types than others. Ultimately, the internet was unsuccessful in killing billboards, and some may even argue that billboards are a refreshing alternative to on-screen advertising, but regardless of one’s views and just because an idea is old; one should not mistake such an aged idea for a lack of contemporary effect. For more information on how billboards and other marketing strategies may serve a dual purpose within your business, visit HB Consulting, LLC to learn more about our services and to book a Free Consultation.
Disclaimer: The information contained hereinabove is offered for educational purposes only as it is general in nature, is a matter of opinion based upon information and belief, not predicated upon any person or organization’s specific facts or circumstances, should not be relied upon, nor should the writing hereinabove be taken by any reader as Legal, Financial, or Tax advice under any circumstance.
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