Billboards are everywhere in big cities in Kenya.
They’re fun to read; I love reading billboards and poking fun at some advertisers language.
Digital billboards look like televisions, I said one day to the horror of my daughter.
”No mum, that’s not a television, which television is that? That’s a billboard!”.
You may ask why do I need a billboard to advertise my business when there’s Facebook and Instagram ads or social media marketing?
Should I invest in a billboard rental business in this current digital world?
Most companies today are focusing on digital ads.
You may wonder why there are still tons of billboards on the side of the road.
Billboard advertising is attractive and effective even in the age of digital marketing.
If you are willing to spend a good amount of money to gain a customer(s), a billboard rental business is for you.
Is Billboard Rental a Profitable Business?
Before you start a business, you have to know if it is feasible or not.
What are the investments I must make? Is it profitable?
What are the profit margins? What are the risks involved?
These are good questions to ask before you take the plunge and start your own business.
You can make a lot of money from starting a billboard rental business.
Owning a billboard will provide you with regular streams of cash, which is great if you are looking to be financially stable.
You can start a billboard rental business as a side job or as a full-time job and earn some extra cash or make a living out of it.
If you are still in doubt about starting a billboard rental business, read on and find out everything you need to know.
What is a Billboard Rental and How Does it Work?
A billboard is an outdoor sign used for advertising.
You will see them as large or small boards erected by the side of the roads, streets or highways.
A billboard rental business is a company that buys or leases a piece of land, erect billboards and allow you to display your ads on their advertising space.
With a billboard rental business, you will rent your advertising space to business owners at a price.
How Do I Start a Billboard Rental Business?
Before you start your billboard rental business, you have to decide how you want to start your business.
Do you want to buy a billboard that is already erected, buy or lease a piece of land and erect your billboards?
Follow these steps to start your billboard rental business.
Do market research.
The first thing you should think about doing is studying the market before you start your business.
Do thorough market research and analysis and find out everything you need to know about your target customers and competitors.
Who are your target customers?
What billboard rental services do they need?
What are the challenges they are facing with the advertising strategy they are using?
Knowing this fact is important so that you can get what your customers need.
You also need to study the competition so that you can understand the pricing models your competitors are using and how they achieve success in this business so that you gain a competitive advantage over them, once you start.
Find a great location
Location is very important for your billboard rental business.
Go out scouting and find out what are the best places to erect billboards for your rental business.
A good location is one that is free from any obstructions and is quite near the roads so that your billboards can be seen.
Remember clients want to rent billboards that they are sure will generate more leads for their business when they place their ads on these sites.
Don’t forget to look for high traffic areas that will increase the chances of generating more leads and sales conversions.
Get your legal paperwork done.
Before you start your business, you have to make sure that it is legitimate and in full compliance with the law.
Register your business depending on how you are starting it, as an LLC or a company, get your tax clearances and other certifications.
Zoning is particularly important in this business. Once your business is legally acceptable, you can get the necessary equipment.
Get the necessary equipment
Get all the materials you need to start construction work for your billboard.
If it is wood or metal sheets that you need to buy, make sure you go for quality materials that can withstand extreme weather conditions.
Build your site
Hire the best talent and put up your first billboard for the business.
This you must do after making sure that you have not gone against any laws and the land you are building on is free for use.
Get the right measurements that you need to put up your billboards, in terms of size and height above the ground. Set up billboards ready for business.
Promote your billboard
You have to put your billboard rental business out there so that you may have customers seeking your billboard rental services.
Once you get your first customers, you may start your business operations.
What Will I Do in a Billboard Rental Business?
You need to know the operational activities that will be going on in your billboard rental business and the roles and duties that you will take on to ensure your business are fully functional. This is what you will be responsible for in your business.
- Research local zoning laws and determine the best potential sites for your billboard rental business.
- Measure available land and the billboard space that you need for your business.
- Negotiate the available land by using contracts and processes for advertising.
- Oversee the safe construction of your regular or digital electronic billboards
- Conduct inspections, perform maintenance and make any necessary repairs.
- Bookkeeping and accounting requirements for your business.
What Do I Need to Start a Billboard Rental Business?
These are the requirements for starting a billboard rental business.
- A billboard. You can’t have a billboard rental business without a billboard.
- Zoning maps to know what areas are safe for you to erect your business and which spaces are not
- Rental space. You can choose to buy a piece of land, rent or lease one so that you can use it for your billboard rental business.
- Vehicle. To measure the proximity of your billboard to the road.
- Business licenses and permits
What are the Expenses for a Billboard Rental Business?
Once you have decided on starting a billboard rental business, you need to know the startup costs and the ongoing expenses that you will incur.
This is important so that you do not fall short of your budget when you start your business. These are costs you should include in your budget.
- Cost of construction. This can range from Ksh.100,000 or more depending on your negotiation terms.
- Cost for business license. Check with the local authorities to find out at what fee they will give you a business license.
- Property rental/ lease costs. You have to pay for the rental space that you will be using to erect billboards for your business.
- Insurance. Find an insurance company that has the rates you are ready and willing to pay for.
- Electricity costs for billboard lighting and electronic digital billboards.
- Maintenance and repair costs for your billboards.
- Transportation costs since you will be travelling to potential billboard sites and meeting with business associates.
How Much Does it Cost to Start a Billboard Rental Business?
The amount of money you are going to use to start your billboard rental business will depend on if you are going with old print or digital billboards.
You will also look at the measurements you want your billboard to have in terms of size and how high above the ground you want it to be.
The bigger the size and height, the more expensive it will be to start your billboard rental business.
It will cost you more if you are going for digital electronic billboards.
How Do I Make Money With a Billboard Rental Business?
You earn money with a billboard rental business by selling your advertising space.
Place an ad on the billboards and add your number on the ad and let people know that the space is up for sale.
You can also sell your lease and permits to competitors who want your space.
How Much Should I Charge Customers Renting My Billboards?
The amount of money you charge your customers and the price of your billboards will depend on the following factors.
- Location. If you place your billboards in good location areas where there is high traffic and your billboards are visible, you can charge your clients more.
- Type of billboard. You can choose to either invest in regular or electronic billboards of small, medium to large size. Electronic billboards cost more and the larger the size of the billboard, the more it will cost.
- Length of contract. If your client intends to have their ads placed on a billboard on a.longer time, you should charge more.
How Much Money Can I Make With a Billboard Rental Business?
A billboard rental business has very high-profit margins.
You just have to invest well in the location and find a good billboard that is going to be attractive to users.
On average, you can earn up to Ksh. 1,500,000 and more per year from a billboard rental business.
What are the Legal Requirements fora Billboard Rental Business?
Before you start your billboard rental business, you have to make sure that you are in full compliance with the law so that you do not end up getting fines or having your business shut down.
There are necessary permits and licenses that you need to start a billboard rental business.
- Certificate of occupancy
- Business license
- Tax certificate
- Business insurance
- A service contract
What are the Best Location Ideas for a Billboard Rental Business?
For your billboard rental business, you need to understand what makes a location a great location and also secure these locations.
There are certain things you need to consider when you are choosing a location to start your billboard rental business. I will discuss them below.
- Visibility. When you start your billboard rental business, you should erect your billboard in places that are free from obstructions such as trees or streetlights. A good billboard location is one that allows your billboard to be seen by people.
- Business rates. Check the business rates in that area concerning the affordability of rent, taxes and other utilities such as electricity before you start your billboard rental business.
- Traffic. Make sure you start your billboard rental business in places that have high traffic so that you may increase your chances of having business owners seek to rent your advertising space.
- Demographic. Is the target audience receptive to billboards? You do not want to erect billboards for business in places where they may be considered an eye sore.
- Accessibility. Your erected billboard should be in areas that are accessible by roads and highways to increase the chances of people seeing them, hence more businesses will seek your rental services.
- Competition from other ads. If there is too much competition from other advertising strategies in the area, it is best you refrain from it so that your billboards do to get lost in the crowd.
The best location for billboards is by the streets or highways.
What Skills Do I Need to Start a Billboard Rental Business?
There are some skills and qualities that you need when you start a billboard rental business. If you do not have these skills, you have to at least hone them so that you can manage your business.
- Communication skills. Having good communication skills is important so that you can negotiate the leading contracts and be clear in the advertising prices that you have set.
- Interpersonal skills. You have to hold strong relationships with your clients so that they may be loyal to you and that you may keep on networking with industry experts.
- Computer skills. Since you will be running your own billboard rental business website, you have to have good computer skills to maintain your business information and contacts.
- Graphic design. You need to know how to create your own customised billboards for your clients so that you can cut down on expenses and make more money.
- Accounting and bookkeeping. Accounting skills are important to help you budget and record cash flows in your business.
6. Marketing skills. Knowing how to market your billboards means not sitting idle with billboards without advertisers.
Who are My Billboard Customers and How Do I Attract Them?
Your customers are small or large businesses that are looking to promote their business and expand their customer base.
They will approach you for your billboard rental services, for which they will pay you.
This is how you are going to attract your customers.
- Ask for referrals. Have a referral program, whereby if a business is satisfied with your billboard rental services, they can recommend someone else to check out your business.
- Place an ad on the billboard. You can place an ad on the billboard itself and let people know the space is up for sale. Add your contact information so that they can reach you easily.
- Use social media. Use the connections you have built online to talk about your billboard rental business. Go to Facebook, Instagram or Twitter and advertise your billboard rental business.
- Business cards. Have a business card with good branding, business details and contact information so that your customers will know how to reach you when they need to rent your billboards.
- Create a website. Every good business has a website. Your website should showcase your billboard projects and you should optimise it so that it appears on top of the lists when someone searches for it on Google.
- Word of mouth. Be the best billboard rental business in town that everyone knows about and within no time, people will start contacting you to rent your billboards.
How Do I Promote My Billboard Rental Business?
Once you have started receiving customers into your billboard rental business, you still have to grow your business by expanding your customer base.
You have to know how you are going to market yourself and your business so that more people may know about you.
You can use these ways to promote your billboard rental business.
Start bringing in attractive billboards and build your brand through that. It is easier to get more clients this way.
When people can acknowledge how great your billboards are, they will most definitely tell people about your billboard rental business and how they can get in touch with you for your services.
Ask for referrals and testimonials to get more clients.
Go online and take your time to optimise your website for SEO and also build content.
Your website will create a first impression on your customers and this will determine if they seek to rent your billboards or not.
Leverage the connections you have on social media and use that to talk about your billboard rental business on Facebook and Instagram, share relevant content and create promotions and advertisements to generate more sales and leads.
Run an email sequence on your customers and offer solutions and tips to take care of their pain points when advertising.
You can offer free resources or provide educational content about billboard rentals.
This will also encourage sales conversions.
Business Listings and Directories
Make your billboard rental business available on sites such as Google so that people can come online and search for your services easily.
Create a business profile, showcase your projects and ask for customer reviews if you want to make it to these directories.
Connect with industry experts and participate in local and community events and meet new people. You will get more clients and leads in this way.
What are the Advantages of Starting a Billboard Rental Business?
These are some of the benefits of starting a billboard rental business.
- Building your brand. Billboard advertising is one way to build your business brand. When you offer quality billboard rentals to your customers, you get to be known as the expert business in billboard rentals. This is a good way to stay above competition.
- More income. You can earn a lot of money from a billboard rental business. Billboards have very high profit margins and investing in this business is the best decision you will make today.
- Business runs on its own. Once the billboards are set up, you do not have to be physically present to run the business. You earn money while you sleep with a billboard rental business.
- Passive income. You can start a billboard rental business as a side job and earn passive income or start this business as a full time job and make a living out of it.
What are the Disadvantages of Starting a Billboard Rental Business?
These are the problems and challenges that you will face when you start a billboard rental business.
- Difficult to choose a location. Location will make or break your billboard rental business. If you do not pick a good location that is free from any obstructions, businesses will not want to rent your billboards.
- Competition from digital marketing and other ads. There are many digital advertisements that are being used today. Some are even more affordable and convenient than billboards. For this reason, you may not always have people who will want to use billboards.
- Large capital. Starting a billboard rental from scratch needs a lot of capital to buy land and for construction work. This will be hard to raise especially if you do not have funding.
Mistakes to Avoid When Starting a Billboard Rental Business
These are the mistakes you must avoid when you are starting a billboard rental business. You don’t want to start a business and fail at it, so you need to be aware of these mistakes.
- Choosing the wrong location. Location will make or break your business. Before you start a billboard rental business, you need to find a good place that is legally available and that which is visible to people at large. Do not choose a location when you have not evaluated all it’s special features that will help you in your billboard rental business.
- Placing your billboards where there are too many ads. Always look at the competition available in the area. If there are too many ads, do not start your billboard rental business there. Chances of people seeing your billboards are reduced.
- Obstructions. Do not erect your billboards for business in places where there are obstructions such as trees or streetlights.Your billboards will not be seen and people will not rent them.
Tips for Running a Successful Billboard Rental Business
Once you have started your billboard rental business, you have to know how to improve your business so that you can be successful. Here are some ways to run a successful billboard rental business.
- Have a good business plan. A good business plan should be an essential part of your billboard rental business if you want to achieve success. This plan should include future expansion plans that will see your business grow.
- Design your own billboards. If you can, gain skills on how you can design your own billboards so that you can reduce cost and increase your chances of marking more profit.
- Improve your skills. If you have poor skills, your business will not succeed. Work on your graphic design, communication and interpersonal skills to manage your billboard rental business effectively.
- Find the best locations. The best locations should have good traffic and no obstructions. This is the ideal for business owners who want to rent your billboards because more people will see their business ads.
- Incorporate technology. Use technology in your billboards so that they can have a long lasting appeal to your customers.
How Do I Make My Billboards Memorable to Advertisers?
When you start a billboard rental business, you have to be aware that there are many other advertising companies in the business.
You also want to make your billboards memorable so that you can get more renters for your billboards.
Business owners will seek your services if they see your billboard have a long-lasting impact on people.
Here are some tips on how you can make your billboards effective before you rent them out.
Here are some ways to make your billboards effective for your billboard rental business.
- Erect your billboard within three miles of the main road to target drivers and passengers who will be going driving by. This increases your chances of less generation and sales conversions to the businesses you are advertising for.
- Ensure the messages about the product sale are brief and direct. You can use seven words or less and use bold fonts to catch the attention of people looking at your billboards.
- Use images to make your billboards memorable. If you are advertising for a car business, you can use car images on your billboards.
- Have a call to action and make the advert trackable. Place the business contact details on the billboards so that you may generate leads for your clients and hence be more effective.
What are Some Amazing Billboard Design Ideas?
There are so many billboards and billboard designs you can use for your rental business to get more clients.
You can do a quick Google search or go on Pinterest to find inspiration.
You want to be creative in your billboard designs so that they can turn heads.
There are some lucrative billboard rental business ideas that you should think about giving a try. You have to stick to the theme of the kind of business you are advertising. Here are some examples.
- Furniture billboard. This billboard will have images of furniture and the business contact details.
- Food billboards. Have chef photos or pictures of food or cakes in your billboards.
- Medical billboards. You can advertise a facility or the latest pain killer tablet that is effective for use to your customers.
- Landscape billboards. This one should show beautiful scenic areas that you would recommend people to go and visit.
- School billboards. School billboards have back to school images for discounts by stores on school items.
- Car billboards. Car billboards must have the latest car images that are up for sale and if there is a discount for the sale of these cars.
- Beverage billboards. You can advertise drinks on your billboards.
Use technology, fonts and colour in your billboard rental business.
FAQs on How to Start a Profitable and Success Billboard Rental Business
How profitable is owning a billboard?
Depends on the location of your billboards. The highway billboards get more money.
In your profits consider taxes, interests or depreciation.
How much does a billboard make a year?
Depends on how many billboards you have, their station and how many advertisers come for your billboards.
The location of your billboards matters. You can earn 250k on the minimum and up to 4 million a year plus renting billboards.
How much does it cost to own a billboard?
Depends on the construction material used (board/wood, steel or digital billboards)
Is billboard a good investment?
Yes, billboards are a good investment with high growth potential.
Do billboards generate business?
Yes, depending on your location, where there’s high traffic the potential to earn millions a month goes high. Owning the land where you place billboards means your earning goes higher.
Are billboards a source of passive income?
No, billboards require work and aren’t a passive source of income.
Passive income requires a lot of work upfront and constant updating.
How do you make a digital billboard?
Keep it simple
Make your text large
Use bold, bright and clear fonts,
Stick to one message
Be short and clear
Avoid white backgrounds.
Who invented the billboard?
How do I become a billboard installer?
Have a driver’s licence.
Have construction experience.
Billboards are effective in reaching large masses of people.
Business owners rent billboards to advertise their business.
Billboards are a fun way of advertising a business.
Making money placing ads on your billboard requires you to have marketing skills and an understanding of what businesses/brands want.
Also, to diversify your income source as a billboard owner, ensure to capitalise on digital billboards.
Don’t stop at advertising on billboards only, not all customers want the same kind of advertising.
Learn how digital marketing works and offer alternative advertising for your customers.
Do you intend on starting a digital billboard rental business?
Do you still have lingering questions on how to make the most money as a billboard renter?