Tuesday, September 18, 2007

Flashy billboards get mixed reviews

Richland County is considering allowing new signs

An electronic billboard displays its message near the intersection of Huger and Blossom streets in Columbia.
About 50 people showed up for a debate Thursday on the latest technology in billboards — screens that change messages every six seconds and stay lit 24 hours a day.
The forum featured dueling studies, statistics, psychology and a video of Interstate 26, doctored to demonstrate how it would look with a cascade of flashing signs.
While much of the talk was about the potential hazards for drivers, Columbia resident Basil Garzia wasn’t swayed by the data.
“It’s gaudy,” he said.
“And my gut says that there’s a safety issue, too.”
Already, billboard companies have been allowed to erect the electric signs in Columbia and Lexington County. Now, they are seeking permission to expand to unincorporated Richland County.
A public hearing has been set for 7 p.m. Sept. 25 by the County Council.
The tension is heightened for a couple of reasons:
• Richland County has banned new billboards since 2001. And while allowing digital billboards wouldn’t add new sites, it would extend the life of the signs.
County law is designed to phase out signs over time as they age.
Lamar Advertising’s Scott Shockley said the company has 180 billboards in the county.
• Lamar has put up five digital billboards along city streets in the past year, allowing people to judge for themselves whether they’re attractive or distracting.
Most who attended the forum, held at the library and sponsored by the Richland County Appearance Commission, seemed anti-billboard.
“It’s about high time for us to realize that we have a law on the books, and here come businesses that want to circumvent just because of new technology,” city resident Henry Hopkins said.
Added Virginia Washington, who lives in Lower Richland: “Having lived in New York City and having visited Times Square, it’s mind-boggling. So imagine that here in Columbia.”
John Hardee, a former state highway commissioner who works for Lamar Advertising, said he was surprised at the turnout.
“Shows to me there’s not a lot of concern,” he said.
A new traffic study done for the billboard industry shows the digital billboards don’t affect accident rates, said Michael W. Tantala, an engineer with a consulting firm in Philadelphia.
Jerry A. Wachtel, who has studied driver safety for 30 years, said the jury’s still out. But, digital billboards make drivers look away from the road for unsafe periods of time, he said.
Wachtel said driver distraction is the single greatest factor in car crashes.
Van Kornegay, with Citizens for Scenic South Carolina, said the issue is that billboards are the only advertising people simply can’t avoid.
“We cannot change the channel. We cannot turn the volume down. We cannot cancel our subscriptions. We have to watch.”

Source: The State --By DAWN HINSHAW

Compromise could solve city billboard lawsuit

Not that it should back down on enforcing city laws, but Murfreesboro needs to revisit its sign ordinance regarding electronic messaging signs.
We believe the City Council can find a way to allow the technology of today's billboards without letting the city turn into another Las Vegas.

Lamar Advertising of Tennessee filed suit against Murfreesboro Aug. 22 claiming the city wrongfully revoked its permit for the Old Fort Parkway billboard that changes advertisements every eight seconds.
Murfreesboro has an ordinance passed this year prohibiting all electronic messaging signs and a long-standing law that prohibits flashing signs for commercial purposes.
We fail to see, though, how the billboard near DoubleTree Hotel and Starbucks injures the city of Murfreesboro and its residents. The technology is here and the signs enable more than one company to advertise at once. Whether the sign looks good is typically in the eye of the beholder, but make no mistake, this is the type of sign that is being seen across the country.
So why is it being rejected in Murfreesboro? Because the sign ordinance is too rigid. The city also revoked the sign permits of two convenience stores that were using lighted signs to advertise the price of gas, even though they didn't flash, blink or change every eight seconds. The sign stayed up at one of those stores after the Board of Zoning Appeals allowed it on a technicality.
The BZA rejected Lamar's arguments, however, and now the city is in the midst of another lawsuit over its sign ordinance. In the 1990s, Murfreesboro lost a court battle when it exempted American flags from size restrictions. Eventually, the courts found that all flags should be restricted and the city forced Goo-Goo car wash to remove a huge flag from its new business last month.
The City Council, however, is considering allowing larger flag displays of 150 square feet on 50-foot poles. If the city can bend on that part of the ordinance, why not on the flashing billboard section?
Officials made the right move when they heard the cries of residents who wanted a larger display for U.S. flags. They should also compromise on these types of electronic messaging signs, possibly by writing the ordinance so that messages could change only every 15 seconds, in order not to distract motorists.
Lamar's argument will be difficult to beat in court because the company claims it had a valid permit approved by a city sign inspector in November 2006 after the sign went up.
Of course, it's impossible to predict how the courts will rule. Who would have thought the U.S. flag could be categorized as a sign?
But if the city of Murfreesboro can limit the size of a flag, then make changes based on public opinion, it can find a way to meet the business world half-way on flashing signs, without allow the landscape to look like a strip of casinos.

Source: The Daily News Journal

Unfair Lawsuit in Lafayette, La.

In other business Tuesday, the council is scheduled to go into executive session to discuss a lawsuit brought against the city-parish by a billboard company.
Bass Ltd., is arguing that the city unfairly approved permits that allowed Lamar Advertising to convert several billboards to digital format.
When Bass made a similar request, the Department of Planning, Zoning and Codes did not approve the application, saying it had decided to take a look at the ordinance that governs billboards.
The issue was set for a hearing Oct. 8 before 15th Judicial District Judge Kristian Earles, although attorneys for Bass have said they’ll request an earlier hearing.
The council meets at 5:30 p.m. Tuesday in City Hall on University Avenue.

Source: Advocate Acadiana bureau Lafayette, La.

S.A. board's vote to regulate digital billboards at odds with Clear Channel's plan

Clear Channel Outdoor's effort to change state and city codes to regulate digital billboards has hit a snag.
San Antonio's electrical supervisory board agreed Monday to recommend a city ordinance to regulate the light-emitting diode signs, or LEDs, but suggested capping permits to 10 for the first year and banning their use on older billboards that are exempt from current restrictions.


That could crimp Clear Channel's plan to put up 150 of the digital signs and, based on a trade-out requirement in the proposed city rules, take down 600 older billboards that are mostly in neighborhoods inside Loop 410.
That's because many of the most lucrative billboards are on sections of major roads and freeways designated as scenic corridors, which forbid new signs that aren't part of a business. So the existing signs in those prime areas are grandfathered and therefore exempt from the rules.
Size, height and spacing requirements also affect what's grandfathered, but city and Clear Channel officials say the rules are murky.
Attorney Frank Burney, representing Clear Channel, warned the electrical board that lawyers could end up haggling, billboard by billboard, on just what is grandfathered.
"I'll tell you, if you go with that, it'll be a retirement fund for lawyers," he said.
The board disagreed, and its recommendation now heads to the City Council. Staff officials said they don't know when the council will consider the proposed ordinance.
The billboard industry's draw to digital signs includes the ability to remotely switch messages half a dozen times a minute or thousands of times a day.
The electrical board recommended that images not move, be displayed at least 10 seconds each and be switched within a second. There would also be limits on brightness and a trade-out to take down three to 19 old billboards for each digital sign.
Burney and three Clear Channel officials were among 17 people who spoke at a public hearing before the board vote.
Ten speakers opposed the ordinance, saying the lighted signs would clutter the highways and distract drivers.
"A message that changes every eight seconds is designed to distract you," said Larry Clark of the River Road Neighborhood Association, one of several people speaking for neighborhood groups.
Marcie Ince of the San Antonio Conservation Society and Kathleen Trenchard of Scenic San Antonio asked the board to wait until a Federal Highway Administration study is finished to determine what risks digital signs could pose to drivers.
The study is scheduled to start next year and finish by the end of 2009, administration spokesman Doug Hecox said.
Meanwhile, the Texas Transportation Commission proposed similar rules last month for state roads within cities and will hold a hearing Nov. 28.
Last year, the Texas Department of Transportation began an effort to rework a federal-state agreement to allow the digital signs. The TxDOT attorney overseeing the initiative, Timothy Anderson, has since joined Clear Channel and spoke at Monday's hearing.

Source: Patrick Driscoll -Express-News

Digital images on billboards catch driver's attention

A new billboard in Peoria may have caught your eye recently.
The L.E.D. digital billboard is on the corner of War Memorial Drive and University Street in Peoria.
It switches through different images and ads.
That movement is what's catching people's eyes and that's bringing in dollars for advertisers.
“From an advertising standpoint it's been a huge impact. We've had calls from the very first day from some of the advertisers that signed up saying they've got a ton of calls in saying what are you doing I've seen your billboard,” said Paul Zacovic of Adams Outdoor Advertising.
The billboard also adapts to light conditions.
Its been in Peoria for about a month.
There is a similar smaller billboard near University and Glen and at least one in the Twin Cities


Source: Heart of Illinois- By Laura Michels

New Braunfels puts hold on billboards

NEW BRAUNFELS — The City Council here unanimously imposed a 180-day moratorium on digital billboards in the city.

Council members said they want an ordinance to regulate them before the city is hit with a wave of permit applications.
State officials are considering allowing the new, light-up billboards, which can flash a new message every few seconds, along highways. New Braunfels already has one application for such a billboard, which will be considered by the city because it came before the moratorium.
The council decided late Monday to reconvene a committee that disbanded this year after making recommendations for a sign ordinance. The panel will consider whether the city should allow digital billboards and, if so, how bright they can be, the number of messages they can display and how quickly the messages can change.
Opponents of the billboards complain that they cause light pollution and distract drivers. Industry representatives say their studies show no increase in accidents.

Source: Express-News

Flashing billboards won't be distracting GR drivers

Wednesday, September 12, 2007


GRAND RAPIDS -- City motorists will not be distracted by videos or flashing messages on local billboards anytime soon, thanks to a three-month moratorium imposed by city commissioners Tuesday.
The ban came at the request of City Planning Director Suzanne Schulz, who warned that the city's 1969 zoning ordinance was powerless to stop billboard companies from installing high-tech billboards that could distract motorists by projecting high-quality video images.

The moratorium gives city commissioners time to adopt a zoning ordinance that will restrict the video billboards, Schulz said.
The city has no video billboards along its streets and highways now, but Schulz said they are showing up elsewhere in Michigan, including smaller cities such as Traverse City.
Schulz said the ban was not designed to limit free speech. Instead, it is meant to balance the public's right to be free of signs that distract drivers and pedestrians and cause confusion.
Ban only for 'off-premise' signs
The latest ban affects only "off-premise" signs, such as billboards. Last year, the City Commission adopted an ordinance governing electronic "on-premise" business signs.
Though the automated signs are banned in residential neighborhoods, churches and schools are allowed to install them if they get Planning Commission approval.

Source: By Jim Harger -The Grand Rapids Press

Electronic Billboard Safety Debate

A pair of electronic billboards that some drivers call, "a distraction" can stay put for now.
The bright, flashing billboards are on both sides of I-75 at the 12th Street exit in Covington.
Covington's Code Enforcement Board said it will allow the billboards if their owner gets the proper state permits.
However, the Kentucky Transportation Cabinet wants the electronic billboards removed. It says the law does not allow them, and they could be unsafe.
Covington's Code Enforcement Board said the signs are not a distraction. The owner of the billboards has until December 31st to get the permits.

Source: Local12.com

Wednesday, September 12, 2007

Watchfire Digital Outdoor Announces Sales of 16 LED Billboards

Press Release

DANVILLE, Ill. and INDIANAPOLIS, (September 12, 2007) --

Watchfire Digital Outdoor manufacturer of the industry’s best looking and most reliable digital billboards, announced the sale of 16 digital billboards to independent outdoor operators. All of the billboards are 19mm pixel pitch, which pack 768 LEDs into every sq. ft. and are capable of producing 281 trillion colors, the most in the industry.

The 16 new digital billboards were sold to six companies, including:

· JR Promotions, Columbus, Ind.: will install central Indiana’s first two 14’ x 48’ digital billboards in September.
· BASS, Ltd., Lafayette, La.: purchased six LED billboards including two 12’ x 40’ digital billboards and four 10’ x 35’ digital billboards.
· Oliver Real Estate, Pittsburgh: acquired five urban sized digital billboards ranging from 5’ x 12’ to 10’ x 21’.
· Zalla Companies, Covington, Ky.: purchased one 13’ x 37’ digital billboard for the Cincinnati market.
· A Bloomington, Ill. outdoor operator purchased one 12’ x 24’ digital billboard.
· A Burlington, N.C. outdoor operator purchased one 14’ x 48’ digital billboard.

“Watchfire is well-established in this business. We’ve been in business for 75 years, we’ve been building LED signs for 10 years and we’ll build nearly 5,000 LED faces in our Danville, Ill. factory this year,” said Darrin Friskney, director of Watchfire Digital Outdoor. ”All that experience is making us an attractive option for outdoor operators. The market is hot for digital billboards and companies like buying from Watchfire because we build a product that looks great, is very durable and reduces energy requirements. What’s more, we continue to deliver faster than anyone in the industry.”

Watchfire Digital Outdoor produces the industry’s only 19mm pixel pitch billboard, which features 11 percent more pixels per sq. ft. than comparable models in the industry. Watchfire Digital Outdoor boards produce 281 trillion colors, a palette 64 times deeper than other billboards.

Watchfire’s Ignite™ software provides a link to 24/7 monitoring of sign schedules and performance via a live web cam, automated sign diagnostics that provide real-time monitoring and reporting on comprehensive sign “health,” automatic sign dimming to assure appropriate brightness and optimal viewability, printable proof-of-performance advertiser reports, and intuitive programming of complex advertising schedules.

Source: Digital Watchfire Press Release

Tuesday, September 11, 2007

New Braunfels to vote on digital billboards

Web Posted: 09/08/2007 10:03 PM CDT

NEW BRAUNFELS — The City Council will consider a moratorium on digital billboards when it meets Monday.
The state is considering rules that would allow the new high-tech advertising signs, which light up and can change every eight seconds. The Texas Transportation Commission is expected to vote on whether to allow the signs after a public comment period that ends Dec. 6.

The billboards would be allowed only in and around cities, and cities would have to approve each one. No flashing lights or moving images would be allowed.
"I'm concerned about whether they should or shouldn't be allowed," said New Braunfels Councilman Pat Wiggins.
Wiggins said the moratorium may be needed so the city can consider whether to permit the digital billboards or under what conditions, and to put rules in place before it starts receiving applications for them.
He said he doesn't want to see a repeat of what happened a couple of years ago, when brightly colored portable signs started appearing around town and were "grandfathered" by the time the city implemented rules for them.
Lee Vela, president of the Outdoor Advertising Association of Texas, said he believes New Braunfels is the first city in the state to address the issue.
The signs have been criticized by Scenic America, a group that fights the billboard industry. Scenic America contends the digital signs are unsightly, a distraction to drivers and a cause of "light pollution."
The Outdoor Advertising Association countered with two studies of its own, one showing no increase in accidents in the Cleveland area after the signs were installed and the showing drivers do not look at the signs any longer than they look at traditional billboards.
"Any issue we look at, it seems like there's two sides and both sides can pull up a study to support their position," said Councilwoman Gale Pospisil. "It obviously looks like there are some considerations and concerns. It's probably a good idea to talk about it."
The council will meet with its attorney in executive session on the proposed moratorium Monday night and is to take action in the public session after that.

Source: Roger CroteauExpress-News

Ban on Bright Billboards

September 7, 2007 - 8:56PM

GRAND RAPIDS (NEWSCHANNEL 3) Many companies who own the boards want to put in huge LCD screens that rapidly flash multiple advertisements. Some are already in place throughout the Midwest. City leaders worry the bright billboards are a dangerous distraction for drivers who may be multi-tasking behind the wheel. Companies putting up the signs say the real distractions are inside the car. Roy Nordstrom a professional driver says, “at 70 miles per hour, I always tell people that's a 105 feet per second, so you can't take your eyes off the road very long. Otherwise you've gone the length of the football field in just three seconds.” On Tuesday, the Grand Rapids city commission will vote to put a 3-month hold on any type of electronic billboard with moving text or pictures to make sure it can regulate the signs.

Source: WWMT News Channel 3

CBS Enters Growing Business: Buys SignStorey

September 6, 2007 10:46 AM

Yesterday, we chided CBS for resorting to financial engineering to pump up its stock price("returning capital to shareholders" by borrowing from lenders and boosting equity dividends). Today, however, the company has actually added business value--by using its cash flow to buy a growing digital advertising business.
The $72 million all-cash SignStorey acquisition--to be renamed "CBS Outernet"--will boost CBS's presence in the rapidly growing "place-based advertising" industry (a.k.a., video billboards). SignStorey operates digital video displays in more than 1,400 grocery stores in major markets across the United States. Ads can be customized by region and by daypart, and the company's satellite-delivery system enables immediate, customized programming to each individual system. SignStorey has long-term exclusive contracts with SuperValu (Acme, Albertsons, Jewel and Shaw's), Pathmark, ShopRite and Price Chopper, among others, and currently blares video ads in the vicinity of more than 72 million consumers every month. Revenue more than doubled in 2006.
As noted here, the video-billboard industry has become a real business: $6.8 billion a year. Billboards as a whole are also one of the only traditional media businesses that is growing. (See Google Sucks The Life Out of Traditional Media.

Source: Silicon Valley Insider

Positive sign: Video billboard ban

The Gilbert Town Council proved its worth as caretakers of the town’s seven miles of freeway frontage Tuesday, when it refused to cave in to pressure for allowing flashy electronic signs along the Loop 202.We hope this will provide an occasion for leaders of other East Valley cities to more closely examine one of the great questions of our young century: Can drivers take any more distraction, especially at 70 mph? Many cities have been willing to gamble that in today’s information-saturated age, people are able to gaze at and ignore flashing lights, words and video images at will, welcoming huge digital displays after shunning old-school billboards for decades. So far, most examples of this new breed function as on-site advertising, including the JumboTron-style signs just down the Santan Freeway for Chandler’s auto mall and the more modest digital displays at Mesa Riverview. Tempe Marketplace’s digital billboards go even further into the past, located next to a major center but not necessarily hawking anything available at that center. These don’t incorporate any animation, but the ads change every eight seconds. These displays are getting noticed across America as well, as cities debate these signs’ costs and benefits, using either Times Square or the Las Vegas Strip as a reference point, depending on geography. The list of studies proving the dangers of distracted driving is longer than most cell phone bills. Yet no large, definitive study has determined whether electronic billboards in particular cause accidents, allowing their backers and detractors to argue ad nauseam. The Federal Highway Administration, which released its most recent noncommittal overview of the issue on Sept. 11, 2001, has agreed to step back into the fray with a more comprehensive study. But the results may not be in until 2009, according to a March article in the Christian Science Monitor. This research may or may not settle the issue, but we are hopeful that local officials will use due caution — more than most have up to this point — when someone applies for a permit to build one of these things next to a freeway. We don’t usually appreciate it when government tells individuals what they can or can’t build on their property, or what an advertisement can or can’t say. But government’s proper function is to ensure public safety, and it would seem that one way to accomplish that might be not to allow private interests to install what amounts to giant TV sets next to freeways.

Source: East Valley Tribune

Business files lawsuit to try to keep electronic sign up in Murfreesboro

Wednesday, 09/05/07

MURFREESBORO — The owner of a digital billboard on Old Fort Parkway is suing to keep the sign flashing.
Lamar Advertising of Tennessee filed suit Aug. 22 in Rutherford County Chancery Court, naming the city of Murfreesboro and the Board of Zoning Appeals as defendants for trying to remove the company's electronic billboard at 1804 Old Fort Parkway near the DoubleTree Hotel and Starbucks.

The Murfreesboro Building and Codes Department revoked a permit for the sign in March, shortly after it was put up, saying it violates the city's moratorium on electronic messaging signs and a long-standing law that prohibits such signs for commercial purposes.
In the lawsuit, Lamar argues that the city's revocation of the permit and the Board of Zoning Appeals' denial of an appeal were "arbitrary, capricious and illegal."
Murfreesboro spokesman Chris Shofner said city officials do not comment on pending litigation.
No court date has been set; the city has not answered the claims made in the suit.
The suit says other digital signs were allowed to stay up, making it unfair to require Lamar to take its sign down.
In May, the appeals board granted an appeal by Affordable Signs regarding its sign at Exxon On the Run at 2464 New Salem Highway, which had been cited for a similar violation. That sign was allowed to remain because of a loophole in the city ordinance, which defined electronic messaging signs as those used for "non-commercial" purposes.
The suit claims:
• The same loophole that applied to Exxon On the Run should apply to the Lamar sign.
• The Lamar sign is not a "flashing sign" as some board members had suggested because its pictures stay static for eight seconds.
• The sign had a valid permit because it was inspected and approved by a city sign inspector after its erection. Lamar was issued the permit in November.
• No public hearing was allowed at Lamar's appeal.
Mike O'Conner, who drives by the sign almost every day, said he thinks the city made the right decision.
Kate Hollow, a recent MTSU graduate, said she doesn't see what the problem with the sign is.
"So it's a big screen. It's hardly the biggest distraction on the road," she said.

Source: Gannett Tennessee By TURNER HUTCHENS

Digital billboard debate to continue next month

Wednesday, September 5, 2007

A local planning board decided Tuesday that an ordinance to allow digital billboards needed more tweaking, and voted unanimously to table consideration until its next meeting.
The Chatham County-Savannah Metropolitan Planning Commission was considering a text amendment that would allow digital billboards in the city limits, but commissioners felt certain requirements were unclear, such as whether the 5,000-foot minimum distance between signs was linear or as the crow flies.
Commissioners also wanted the sign company that prompted the ordinance, Lamar Outdoor Advertising, to take down more non-digital billboards to compensate for the digital ones the company wanted.
Lamar representatives had offered to take down 24 non-digital billboards, but several commissioners pushed for even more to come down, specifically "non-conforming" billboards, which do not meet ordinance requirements.
City Manager Michael Brown, who sits on the commission, likened it to wetlands mitigation, where a developer must replace wetlands he plans to destroy.
"What we're saying is right now we do not allow digital billboards as a matter of right," Brown said. "We're going to allow them as a matter of right. What we're saying is if someone wants to put in a digital billboard, they can go buy a regular billboard and take it out of service and put in a digital billboard."
Some commissioners said the requirement should be stipulated in the ordinance.
Attorney Harold Yellin, representing Lamar, argued that being forced by ordinance to take down non-conforming signs was essentially a deal breaker.
"Non-confirming could be a sign that when we put it up was perfectly legal, and then a school came in next to us," he said.
Yellin also objected to any stipulations in the ordinance that Lamar remove signs, saying that other companies that don't have signs in Savannah would not have to meet such a requirement.
"I don't think you can require something of Lamar that you can't require of everybody," Yellin said. "You're creating an ordinance that is not universal. It's probably not constitutional."
Some commissioners also wanted the 24 signs Lamar had volunteered to take down stipulated in the ordinance.
"How would there be an assurance that these other signs come down without there being an item in the ordinance?" Commission Chairman Stephen Lufburrow asked.
Yellin said Lamar would sign a contract agreeing to take down the 24 signs.
In the end, the commissioners decided they needed to iron out the details before voting, and tabled the item until their Sept. 18 meeting.

Source: Savannah Morning News

Judge allows billboards to go electronic

A ruling issued Friday in Platte County Circuit Court will allow Lamar Advertising to proceed with conversion of more than a dozen Kansas City billboards into electronic billboards.
First up — a sign near Interstate 29 and Northwest 64th Street.
Lamar went to court seeking an injunction against a Kansas City moratorium that in effect has prevented construction of new billboards since March 2006.
Next week the city is to consider an ordinance that would prohibit construction of new billboards along city streets.
Carol Winterowd, a south Kansas City resident who has led the charge against what she termed “billboard blight,” called the ruling “a sad day for the visual beauty of Kansas City. Digitals are the worst of them all.”
Digital signs are becoming more popular.
“The industry loves digital signs because they can get more money off those,” she said. “And they can change those signs in the office with the flick of a switch. It’s a real efficiency move for the industry.”
Although the city cannot appeal the injunction, assistant city attorney Maggie Moran said she found another issue to pursue.
She said the planned digital Northland billboard was illegal because it was built too close to housing.
“We just found that out this week,” Moran said. “We’re going to start an enforcement action.”

Source: The Kansas City Star By KAREN UHLENHUTH

Coming to Your Highway: Digital Billboards

By Ryan Fuhrmann, CFA May 15, 2007


Ever wondered who owns and operates the advertising billboards plastered across American highways? There are three key players that control most of the industry. And after years of modest organic sales gains, digital billboards could inject the space with big-time growth opportunities.
The pure-play operator is Lamar Advertising (Nasdaq: LAMR), and it appears to be taking a measured pace. During its first-quarter earnings release last Thursday, the company reported total sales growth of 8.6% and a sizeable earnings increase, after taking into account a gain from the sale of a private-company interest. Analysts are calling for an almost 17% earnings increase for the full year, but going forward, digital has the most potential to boost results.
Lamar reported "428 digital displays in 107 markets." That's clearly a small percentage of its total billboards, but demonstrates the extent to which digital could end up altering the competitive landscape. Digital could boost sales and profitability metrics for all players in the industry, but Lamar might soon be the only pure-play option for investors to capitalize on the new technology.
The other two key players are Clear Channel Outdoor (NYSE: CCO) and CBS Outdoor, a division of CBS (NYSE: CBS). Together they control an estimated 85% of the billboards in the United States, according to Value Investor Insight. All are similar in size, but Lamar mostly concentrates its 150,000 billboards in smaller, more regional markets. Clear Channel and CBS, on the other hand, chase larger, national advertisers to pursue synergies with their radio and other advertising platforms.
Digital billboards are slowly starting to replace traditional billboards, and could revolutionize the industry. If ads could be updated quickly and cost-effectively by electronic means, billboard operators could rotate ads throughout the day with multiple advertisers per unit.
Digital currently has appealing economics, with five to 10 times higher revenue per unit based on my calculations. Of course, installing these digital billboards can be costly, so build-out expenses may be substantial as well. But with the company looking to reach more than 600 units by the end of this year, clearly it is placing its dollars on digital and not looking back.

Source : Motley Fool

Las Vegas Allows Brothels to Advertise

Sunday, September 2, 2007


Las Vegas residents and visitors were surprised to see a moving billboard, basically a large truck with a digital billboard attached, driving through the streets of Las Vegas advertising the brothels from nearby towns. While prostitution is actually technically illegal in Clark County, including in the Las Vegas area, there has still been some considerable amount of illegal prostitution that still continues to occur in the Vegas area, taking advantage of all the traffic into the famous gambling mecca in the desert, as people come to attend shows and view Las Vegas attractions. This lifting of the ban on advertising for prostitution allows legal prostitution networks from out of town establishments to provide services to the Las Vegas area, including transportation to and from the brothels. This focus on allowing legal prostitution to flourish is considered a good way to reduce the amount of illegal prostitution in the Clark County area and provide protection for legal workers.Oddly enough, the advertising chosen and presented on the moving billboard did not actually feature any women of any kind, as the proprietors chose to be as tasteful and sensitive as possible. Instead, the advertising shows only a profile of the brothel itself from the outside front, showing zero racy content and simply offering a phone number and location information for the brothel. Locals expect the amount of advertising to increase in the future, as more and more legal prostitution establishments come on board and begin strengthening their advertising and marketing programs in the same manner. While the moving billboard might not be the choice for everyone, any type of advertising and marketing is generally considered an effective tool for the prostitution industry and provides a monstrous amount of incoming traffic and paying customers. Naturally, without this influx of new traffic and visitors, no establishment can continue to earn money and remain solvent for very long. As more and more companies focus on advertising for prostitution and legal brothels in the Las Vegas area, it remains to be seen what impact these types of advertising will have on the Las Vegas area over all.Nearby counties that can legally support prostitution expect to experience a tremendous amount of new business, as the strategic combination of advertising and transportation allows legal brothels to attract visitors and users from the swarming and extremely busy Las Vegas area.

Electronic reader boards called a safety hazard

Dominic Cuccia can flash some catchy digital images and text messages across the sign outside his drive-through car wash/Italian eatery business on North Oak Trafficway.
One shows a car getting showered with water and then brushed. Seconds later, the sign reads “Dominic’s Mom is back in the Kitchen.” On another day, the sign reminds passersby that the car wash will be open on Labor Day.
“The things I can do with this reader board are unlimited,” Cuccia said, “and there is no more going outside and putting up a (manual) display board in bad weather.”
Cuccia is among a growing number of business owners who are advertising their products through outdoor electronic, or LED, reader boards.
Once found in only a handful of places, reader boards — described by a sign industry Web site as “the town crier of the modern age”— are popping up in large number, at least in cities where they are allowed.
Businesses like to use reader boards because they can flash several different messages in a minute’s time and their LED technology has become cheaper in the past decade.
“I am guessing that there are probably 10 times more reader boards out there than there used to be 10 years ago,” said Mark Bourgart, president of Infinity Sign Systems, which installs reader boards.
But officials in some cities want nothing to do the phenomenon. They contend that the electronic message boards are not only unattractive but also a dangerous distraction to drivers.
They cite studies by the National Highway Traffic Safety Administration that concluded that taking one’s eyes off the road for more than two seconds significantly increases the chances of having an accident.
“They are ugly, offensive and even more in-your-face than billboards,” said Tom Nelson, a local architect who serves on the board of Scenic America, a national nonprofit group that opposes outdoor advertising.
Digital displays are allowed in most commercial areas of Kansas City, except for specially planned areas such as Zona Rosa.
Leaders in Gladstone, where Cuccia’s business is located, have similar concerns and have formed a committee to review the city’s sign ordinance.
On the 3.5-mile stretch of North Oak Trafficway that runs through Gladstone, there are 10 electronic message boards.
“I don’t want Gladstone looking like Times Square,” said Councilman Mark Revenaugh said. “We are trying very hard to keep Gladstone from having the appearance of an aging community. These reader boards detract from our effort to move this city forward.”
Several cities in the metropolitan area either prohibit electronic signs or impose heavy restrictions on them.
Independence, for instance, prohibits such signs in its growing retail district near Interstate 70 and Missouri 291 but allows it elsewhere, said Stuart Borders, a senior planner for the city.
Borders estimated that there are about a dozen electronic reader boards on Noland Road. But like other cities, Independence has regulations, he said.
Bourgart, whose sign company has been installing digital reader monuments for several CVS drug stores in the area, said businesses have found that reader boards are an effective advertising medium.
“Because so many people have TiVo or satellite radio at home, they don’t have to watch or listen to commercials, so companies have to find new ways to get the message out to their clientele,” he said.
Bourgart added that when CVS puts in a message board at one of its stores, retail sales at that location rise from 17 percent to 40 percent. That, in turn, increases sales tax revenue for the city.
Cuccia, who spent $30,000 on his electronic reader board sign, agreed that they help draw business.
He said he thinks the sign is tasteful and also disputed claims that such signs distract motorists.
“Anything can distract a driver,” he said.
But Nelson of Scenic America said he was awaiting a study by the Federal Highway Administration that will examine the safety issues related to electronic signs.
“One of these days, someone will die because of these reader boards,” he said. “I hope it doesn’t happen, but I fear that it could.”

Source: The Kansas City Star By MIKE RICE

Clear Channel expands digital billboard network

August 20, 2007

Clear Channel Outdoor Holdings Inc.. is expanding the reach of its digital billboard network into some of the nation's largest designated market areas (DMA), including Chicago and Philadelphia. The company is also launching a second phase in Los Angeles where the network was first introduced in May.
The company has now deployed 76 digital billboards since the first of the year and by the end of August it will be operating 16 digital billboard networks in the following 14 DMAs: Akron, Ohio; Albuquerque, N.M.; Chicago; Cleveland; Columbus, Ohio; El Paso, Texas; Memphis, Tenn.; Milwaukee; Minneapolis/St. Paul; Orlando, Fla.; Tampa Bay, Fla.; Wichita, Kan. and two networks in both Los Angeles and Las Vegas.


"After successful programs in a number of smaller markets, we are now experiencing strong market demand for digital billboards in our larger markets, including the top 10 DMAs," says Paul Meyer, president and chief operating officer of Clear Channel Outdoor. "The popularity of this new and exciting medium is the result of its unique responsiveness to advertisers' desires to vary their messages as many times and as frequently as their campaign needs dictate."
Digital billboards display static messages that resemble standard printed billboards when viewed, but also allow advertisers to remotely and instantaneously change messages.

Source: San Antonio Business Journal

Electronic billboard drawing strong reactions

Wednesday August 29, 2007

CHAMPAIGN – A new electronic billboard along Kirby Avenue is drawing strong reactions from city residents.
"I'm hearing about it, from a couple of people who don't like it," said council member Michael La Due. "I think the city council might want to revisit it. I don't know that we want Champaign to look like downtown Tokoyo."

Source: The News Gazette By Mike Monson

Firm fights for digital billboards

LAFAYETTE — A local outdoor advertising company is going to court in an effort to force city-parish government to approve a conversion to digital billboards.
Bass Ltd., which has dozens of billboards along Interstate 49, Interstate 10 and U.S. 90, argues unfair treatment because permits for digital billboards were approved for competitor Lamar Advertising, a national outdoor advertising company based in Baton Rouge.
“What we’re talking about here is giving permits to one company and not giving permits to another without reason,” Bass attorney Alan Breaud said.
The attorney said that Bass has been trying to secure permits to convert billboards to digital since Lamar was granted similar permits in December 2005.
“He’s being kept out of the market,” Breaud said.
City-parish ordinances already prohibit new billboards in Lafayette Parish.
What’s at issue in the Bass lawsuit is whether the company may convert five of its billboards to digital — four of those near the high-traffic area at I-49 and I-10.
Digital billboards are similar in size and appearance to conventional billboards but can scroll through several digital advertisements each minute.
The lawsuit comes as the City-Parish Council is mulling a proposed sign ordinance that would restrict the size and appearance of business signs and allow conventional billboards to be converted to digital only if existing billboards are taken down in exchange.
The Lafayette Planning and Zoning Commission has responded to Bass that no digital billboard conversions will be approved while discussions are pending on the ordinance, which aims to reduce the clutter of signs common in some areas of the parish.
But the lawsuit questions why city-parish officials allowed Lamar Advertising to convert existing billboards to digital but has not allowed Bass to do the same.
“We cannot comment on pending litigation, but hopefully we’ll be able to work this out,” City-Parish Chief Administrative Officer Dee Stanley said.
The issue is set for a hearing on Oct. 8 before 15th Judicial District Judge Kristian Earles.
Breaud said he will request to schedule the hearing sooner, because Bass is competing at a disadvantage every day the company cannot offer digital billboards to clients while its competitor can.
The attorney said the city-parish’s position is tantamount to telling Bass: “You just stay out of business while we contemplate on this.”
Breaud said that in addition to allowing Lamar to convert existing billboards to digital, city-parish government has also approved other digital signs for businesses.
“Everybody has digital,” Breaud said, comparing conventional signs to “a car without air conditioning.”

Source: By RICHARD BURGESS Advocate Acadiana bureau Published: Aug 28, 2007

Billboard approved by the Boston Redevelopment Authority

WGBH 1,350 sq ft "digital mural" Set to Go Live September 17th

Visible for up to 2 Miles

"The digital mural will not feature text or images that are overtly promotional. Rather, the slowly changing images will evoke the science, history, public affairs and children’s programming produced inside the building and for which WGBH is renowned. Examples of digital mural images might be a DNA strand that calls to mind Nova’s science programming, or an early photo of the Wright Brothers that reflects the history content of American Experience. The digital mural will operate from 6:30am to 7pm, with the day’s image replaced by a night sky “screensaver” in the evening." - email from WGBHThe newest light emitting diode (LED) sign on the Mass Pike is a 1,350 square-foot screen on the exterior of the new office of WGBH. The screen is set to go live on September 17th 2007 - the day that the building is set to be dedicated. The LED sign is visible to eastbound commuters on the Mass Pike up to two miles away.This is the first actual electronic billboard to be approved by the Boston Redevelopment Authority, under their new initiative for digital signage. The sign will display "slowly changing images that evoke WGBH's award-winning science, history, public affairs, lifestyle, drama and childrens programming."

Electronic billboards could light up Texas highways

Aesthetic, economic impacts debated as public comment sought


Billboards along urban stretches of major highways could soon be converted to digital signs that are able to flash vivid new color images every eight seconds.
The Texas Transportation Commission approved proposed rules Thursday that are designed to end Texas' decades-long ban on digital billboards along interstates and other major roads. The signs would still be banned in rural areas.
No final action will be taken until after a 90-day period for public comment. But billboard opponents already have decried the proposal as unsafe, ugly and – given the recent death of Lady Bird Johnson – in poor taste.

In addition, a public hearing will be at 9 a.m. Nov. 28 in Austin.
Mrs. Johnson's efforts as first lady led to the passage of the Highway Beautification Act in 1965. That law, though weakened over the years, requires states to enforce federal laws limiting the number and type of billboards along major highways.
"We've had a wonderful woman die recently in our state and she tried very hard to do something about this problem in 1965," said Margaret Lloyd, policy director for Scenic Texas, a nonprofit group that opposes what it calls the "visual blight" of billboards.
Still, the Texas Transportation Commission voted 4-0 in favor of publishing the new rules at its meeting Thursday. Chairman Ric Williamson argued that the views of the outdoor advertising industry – representing "tax-paying businesses" – should be heard as well.
"The billboard industry appeared before the commission last year and asked us to post rules so the public could be allowed to comment on the issue and see where everybody is," Mr. Williamson said in an interview Wednesday. "We've been thinking about that for almost a year, and we have now decided to let everybody air their positions out."
Commissioner Ned Holmes of Houston abstained.

Source: By MICHAEL A. LINDENBERGER / The Dallas Morning News