Out of Home - May/June 2014 - 26

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digital sign and make oodles of money. they don't
understand that every 10 years you have to replace
it. If people bought houses that way, they wouldn't
be a very good investment."
that 10-year figure is fairly realistic. Seven to
10 years, or 100,000 hours, are figures commonly
tossed around. By the end of that period, they also
may look - and act - dated.
"even if the quality is good enough, operators
might want to think about replacing them after 10
years because they can get better efficiencies," says
SignValue's Wright. "they are likely to have better
options in terms of the technology available."
even with such daunting costs on the digital
side, it's possible for the boards to pencil out a
profit. What makes the difference is the increased
number of impressions a digital board can offer,
and the fact that advertisers often are willing to pay
just as much for sharing space on it as they are to
get an exclusive on a static board.
Mark Moyer, Ceo of duncan, S.C.-based Fairway
outdoor, says that company really doesn't sell
its digital space any differently than its static
availabilities.
"We're selling six flips compared with a static
one, and while we're probably not getting six times
what we would for that static one, it's generally
pretty close," he says. "the difference is we can be
much-more-creative than with a static board."

26 | out of home magazine | may | june 2014

Moyer adds that the only thing Fairway has found
that can put a crimp in that formula is overbuilding,
so "we have a measured pace of deployment."
Stark says the creative opportunities the boards
present can even mean that people are paying a
higher price to be one of six or eight advertisers than
they would to have the same location on a static
board - although location is key.
"It has to be done in the proper locations," Stark
says. "When you have a high occupancy on the
digital board and at a higher rate, it can be a great
investment. Initially, some people were so anxious to
get the digital boards up that they deployed them in
areas where the demand didn't support it, but folks
have gotten smarter about it."
and, kalil's drachman thinks that part of the
equation will only improve as people get even more
sophisticated about digital outdoor advertising.
"It could open up opportunities where people start
selling outdoor like they have radio and tV for years,"
drachman says. "they can do spot sales techniques
where they promote the news coming up or a local
restaurant's special on the evening commute. digital
network packages are what some folks are selling
already."
Fairway's Moyer isn't the only one to mention
the threat that overbuilding can have - not just to
a company's digital locations, but also to its static
inventory. However, given the right spot and the right

"People think they'll put in a digital
sign and make oodles of money. They
don't understand that every 10 years
you have to replace it."
-- Dave Westburg, Billboard Loans LLC

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