Market Profile in LA:
Los Angeles is home to approx. 3.93 million residents with a median household income of 49,500k. People on the road in LA spend approx. 29.2 mins driving to work everyday. There are over 122k businesses located in the city. From these facts it is reasonable to say that LA is an impressionable and busy place to advertise by way of billboard and other mediums.
Why Billboard Advertising Works Here:
The City of Angels to not shy on advertising premium services and products to their locals and tourists scoping out the city’s entertaining features and personality. It is the leading center for business, media, and fashion among other professions. LA is a cultural hub of current trends, a place where stardom and bright opportunities are highlighted, and people talk the talk just the same as they walk the walk. Being that LA is leading the evolution of film and television, it is the perfect place to advertise an abundance of services that compliment those industries. Behind NYC, LA is the second most populous city in the United States. With that fact alone, it is safe to say billboard and other advertising opportunities are more than available and at a great reach. Places like Hollywood Drive and Rodeo Boulevard are traffic heavy and the opportunity for advertising along these roads are accessible and smart. For more target centred advertising, places like Dodgers Stadium, University of Southern California, and University of California are primary hubs of ads geared to sports fans and students. Interstate 5, the highway connecting Seattle to Mexico, is another passageway for great billboard advertising to touch on.
The Cost of Billboard Advertising:
Billboard costs in LA range from 2k-15k/month. It is important to factor in the number of weeks the campaign will run, along with the positioning of the advertisement in the given location. Digital LED billboard advertising prices will typically range from 875USD-10k depending on the number of slots and the number of weeks the advertisement will make appearances. Billboards in LA are usually quoted on a 4 week as opposed to a 1 month period. If an OOH advertising agency quotes 1500USD for a yearly contact they mean to tell you they are working at 13 four week periods for 1500USD/period. In addition to the rent of the billboard, a billboard advertising client will need to pay a production fee for the vinyl used. The production fee will usually be 50 cents per square foot of the vinyl, 336USD for a 14′ by 48′ billboard, 189USD for a 10.5′ by 36′ billboard, and 64USD for an 8′ by 16′ poster. It is more cost efficient to put out a billboard advertisement than a radio, television spot, or print in LA, as the reach will prove to be a lot greater and it is fairly affordable on a CPM basis.
LA Metro Advertising and Regency Outdoor Advertising:
Home of the LA Metro, Los Angeles advertising utilizes this service as a platform to share products and services in and around the LA area. Metro accepts commercial advertising inside and on the exterior of their buses, rail stations, and pop-up OOH experiences. OUTFRONT Media works with Metro to push outdoor advertising as an effective means of brand communication. A large portion of LA advertising comes from Regency, a top provider of outdoor advertising that creates spectacles in the Los Angeles Basin and Orange County. Regency covers the most effective locations in Southern California, with places such as LAX, all major freeways, Sunset Strip, and more. Netflix teamed up with Regency last year to purchase 35 Regency billboards for $150 million USD, where the influential Sunset Strip was taken over by Netflix hyped with current original Netflix series. Marty Williamson, of Williamson & Associates, said, “It’s a deal that is great for both buyer and seller. Netflix will save huge advertising dollars and own billboard assets that they will have control of and that will continue to appreciate over time. Regency has the cash yet still owns the other half of the inventory with the option to continue to operate and build additional value or sell.” (Williamson, 2018). Seeing as LA is notably known for entertainment and sensational celebrity culture, this move is highly profitable for Netflix to advertise knowing the demographic on the popular Sunset Strip.
Existing Digital Mobile Billboards in Los Angeles:
It’s common for the bubbly city to spend advertising dollars on digital mobile billboards circulating specific regions, with the intention to gain consumer interest. Companies like Kre8 Outdoor Advertising offer mobile, digital mobile, and iconic custom build-out billboards that target the Southern California market. Other companies such as Coast 2 Coast Mobile Media run mobile billboards, 3D billboards, special effects media vehicles, and multimedia video vans to create OOH advertising from Atlanta to Los Angeles.
Looking at the growing opportunities for further billboard advertising in Los Angeles, and the sectors of entertainment driven communities, Movia Media provides quality static mobile billboards that deliver clear messages to a range of geographic locations. Movia Media fits well in the market of effective billboard advertising that will continue to be a widespread marketing advancement. Eye-catching billboards are yet another shining star in the City of Angels.
References:
Queiroz, Rodolfo (14 February, 2018). How Much Does Billboard Advertising Cost? Dash Two. Outdoor Advertising. Retrieved from: https://dashtwo.com/blog/how-much-does-billboard-advertising-cost/
Westburg, Dave (3 July, 2018). Netflix buys 32 Regency billboards for $150 million. Billboard Insider. Retrieved from: https://billboardinsider.com/netflix-buys-32-regency-billboards-for-150-million/
For more information on billboard advertising companies in Los Angeles, check out:
https://www.regencyoutdoor.com/
