How to Finance a Digital Billboard
Digital billboards are a proven way to boost revenue both for you and your advertisers. But to start an OOH billboard advertising business or switch from static vinyl or paper boards to digital boards, you’ll first need the funding to purchase your new billboard(s).
Even if you have the money available to pay for a digital billboard up front, it may not leave you much capital for other immediate business needs. Financing is a smart way to retain capital reserves and free up cash in the short term.
We recommend working with a specialty lender who focuses on capital investments in the billboard industry. A specialty service has more industry-specific knowledge than a traditional bank lender and knows what factors to consider when evaluating a billboard financing proposal. There are other ways to help defray the initial cost of a Watchfire Signs billboard, too. With this guide, we hope to help you understand the options for getting into the digital billboard business and how to make it work financially now so you can reap the benefits later.
The Benefits Digital Billboards in Your Out-Of-Home Business
Based on conservative estimates, your choice to convert a static billboard to digital could result in a pay off in a little over a year, with many more years ahead to deliver profits. Digital billboards open up a new market of advertisers who have traditionally avoided out of home advertising, and have the potential to generate six to ten times more revenue than static billboards.
Wondering how a digital billboard could boost your revenue? A static 14' x 48' bulletin in a prime location that generates $3,000 per month from one advertiser would have potential for messages from eight advertisers as a digital board. That means it could generate as much as $24,000 per month. Your digital billboard investment could be paid off in its second year and deliver many more years of profits.
Use Pre-Sold Ads to Fund Your Digital Billboard
To help operators purchase the highest quality digtial billboard for a price that benefits their bottom line, The Watchfire Advertising Plan gives operators of digital billboards the opportunity to take advantage of pre-sold advertising that offsets the cost of a new Watchfire display. Billboard operators simply opt-in when placing their order by contracting one slot on their new board as part of the program. As an example, a billboard location with a daily effective circulation of 50,000 that accepts a three-year contract would get a nearly $20,000 reduction in the cost of a new Watchfire digital billboard, regardless of the billboard’s size.
How to Buy and Install a Digital Billboard with Financing
Financing is a great way to purchase a digital billboard. However, funding requests for digital billboards are not something that the average bank lender handles regularly. Banks may not understand the out of home advertising business and could be fearful about what they would do with a digital billboard in the event of foreclosure. They also are more hesitant to give loans to start-ups or people with a lower net worth.
Watchfire now offers an exclusive financing program that is unique to the industry. It’s open to any billboard operator Watchfire endorses. Terms are favorable and lending decisions are generally made within one business day. Finance terms of up to seven years are also available with straightforward contracts and pricing.
Watchfire has worked with more billboard companies than any other manufacturer and we have a track record for helping operators build their business. Our exclusive financing option gives you the freedom and flexibility to determine a manageable monthly payment.
