Outdoor Heavy
Jun/100
Outdoor Heavy
How the Obama Presidency Will Effect the Outdoor Billboard Industry
The election for the 44th President is over, and the uncertainty of the race is behind us. Now we face the next round of uncertainty – how this election will affect the outdoor advertising industry. There has not been a more stressful start for a President in recent times; with an unpopular war in Iraq, an economy in recession, the ever-present danger of terrorism, and a complete free-fall in home values and banking solidity. So here is our forecast for what the Obama presidency will mean for the outdoor billboard industry, and the nation in general.
- Saving The Auto Industry Is Good News For Outdoor. Obama appears poised to take an aggressive, proactive approach to trying to shore up the collapsing U.S. auto industry. He is already in talks with Ford and GM to try and construct a plan for when he takes office. As the auto industry is a very heavy user of outdoor billboards, this is a positive development. And keeping the U.S. auto industry alive and healthy also keeps competition with foreign imports hot and heavy, leading to potential increases in ad spending.
- Working To Improve The Homebuilding Environment Is Good News For Outdoor. Obama plans to use the $700 billion bank package approved by Congress to shore up the lending industry, which in turn will improve the ability to make mortgage loans (although not sub-prime as before). This will enable builders to once again sell new homes and those with old homes to be able to sell theirs and pay real estate brokers a fee. Since home builders and real estate brokers are large users of outdoor billboards, this is a great development.
- Keeping Banks Healthy Is Good News For Outdoor. One of the focuses Obama will inherit from Bush is the on-going attempt to keep banks solvent and open for business. Obama appears interested in continuing, and perfecting, this plan. As banks are heavy users of outdoor billboards, this is a very positive step.
- Putting More Money In Middle Class American’s Pockets Is Good For Outdoor. Obama has several initiatives that, he believes, will save the average American family significant cash, even if it is in the form of lower gas prices and lower health care costs. This should translate into greater spending by consumers and, as a result, a healthier environment for retailers. And, as you know, retailers are heavy users of outdoor billboards.
- Hope May Lead To Better Consumer Spending. Since consumers are the biggest part of our economy, and since Obama seems to inspire hope in the average American, perhaps they will keep on spending rather than pulling back. This may lead to a more mild recession, and that is good for all businesses. And almost all business categories are heavy users of outdoor billboards.
In summary, it appears that the Obama presidency will be good for the outdoor billboard industry. Many of his initiatives will help keep some important advertiser categories in a position to keep on advertising, and others will help instill more confidence in a consumer that has endured too much Bush. Although many outdoor billboard owners thought that McCain was important to keep the industry thriving, in retrospect, it appears that Obama might be the candidate that really has the best hope for the industry. And one thing is for sure. In a few months, we are all going to find out.
About the Author
Frank Rolfe is the author of the book...Big Bucks From Big Signs and is currently hosting the Billboard Mentoring Program .
Rolfe started his billboard empire from his coffee table, as a fresh graduate from Stanford University. It began as a resume builder for graduate school applications, and ended with a sale to a public company 14 years later.
Using unique strategies he developed from desperate competition with much larger adversaries, Rolfe eventually owned more billboard units than any private individual in Dallas/Ft. Worth. Along the way, he fine-tuned the techniques to find billboard locations, rent advertising space, and sell signs and leases.
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