home » Registration » How to make money on outdoor advertising-city-format. How to make money on billboards? What is installed on the billboard

How to make money on outdoor advertising-city-format. How to make money on billboards? What is installed on the billboard

So. Today I will try to provide you with information according to the specified topic.

Firstly, it is necessary to preliminarily agree on the place and assume the approximate appearance of the billboards themselves in order to correctly estimate the costs.

To begin with, I will give a rough picture of how I imagine this business. It is from this notion that I will proceed.

billboard installation business

Such a pleasure at the moment will cost from 3000-5000 rubles, taking into account the cost of land registration.

Construction and registration of necessary papers

Budget. Suppose at the start we have a budget of 2,500,000 rubles.
Registration of land lease. Let's take 20 plots 3 by 3 meters. The price of paperwork will differ little throughout the country. At least the land near the busy highway will definitely not bite the price. Plot near the road in 9 square meters. meters can be completely purchased for 10,000-20,000 rubles. We take the cheapest option. As a result, provided that the land costs 10,000 rubles, for 20 plots of land they will take from us: 20 * 10,000 \u003d 200,000 rubles.
Provided that the land costs 20,000, we get: 20 * 20,000 \u003d 400,000 rubles. As in that, and in another version, the price is not so great. We move on.
Construction. For the construction of large billboards on a concrete base, we actually need to spend on a team of workers with equipment for the necessary materials. In total, 1 billboard will cost up to 100,000 rubles.
We agreed that we would undertake the construction of 20 billboards. As a result, in the calculation we get: 20 * 100,000 \u003d 2,000,000 rubles. As you can see, construction costs will be the main ones.
Summary of billboard construction costs. In conclusion, we summarize all the costs and get the maximum figure of up to 2,400,000 rubles. I advise you to use the remaining 100,000 rubles for advertising or leave it as insurance for unforeseen expenses.

Earnings on billboards

Advertising cost. Actually the price characteristics in different places are different. But on billboards like ours, you can easily take up to 15,000 rubles a month from one billboard. Let's say we do as I said and estimate the monthly advertising placement at 15,000 rubles. We get the following picture for a year from one billboard: 15,000 * 12 = 180,000 rubles. From all billboards, earnings will be: 180,000 * 20 = 3,600,000 rubles. The difference between the initial costs and the expected result is obvious. However, it is worth considering the fact that not all shields will be equally popular. Therefore, net earnings will be about 3,500,000 rubles.
Expenses that are not counted. We forgot to calculate the necessary expenses: the annual cost of servicing your breadwinners for 20 billboards will cost about 300,000 rubles; provided that up to three people with a salary of 20,000 rubles will work in your organization, we will get the following picture = for a year one employee will get: 20,000 * 12 = 240,000 rubles, and for a year for all staff of three people 240,000 * 3 \u003d 720,000 rubles.

Summing up the results of business calculations on bidboards

In the end, we get the following result for the year:

Construction and paperwork costs (only the first year is taken into account) = 2,400,000 rubles.
Income in the first 12 months = 3,500,000 rubles.
Initial costs = 1,020,000 rubles.
In total, in the first year you will have to spend 3,420,000 rubles.
Net profit in this case: 3,500,000 - 3,420,000 \u003d 80,000 rubles.

As you can see, it is unrealistic to earn huge money in the first year. But after a period of 12 months, your earnings will become stable and, minus the initial costs, will be: 3,500,000 - 1,020,000 = 2,480,000 rubles.

You can get free business consultations in my VK group "

Billboards (billboards) - tall structures with bright images and enticing slogans, have long become an invariable attribute of the streets of all cities. They are used to promote products, services, outlets, brands, social events and more. However, is this popular advertising element really effective and versatile? In this article, we will try to answer this question by analyzing in detail all the advantages and disadvantages of billboards, their relevance for a particular type of business, and other features of this outdoor promotion tool.

What is a billboard

A billboard (most often a billboard) is an outdoor structure whose main function is to promote any service or product. As a rule, such billboards are installed in close proximity to busy highways and roads, as such placement allows you to attract the attention of drivers and passengers of the vehicle, as well as passers-by who can easily see the billboard.

Speaking of motorists, they typically have 10 to 15 seconds during which they can notice and read the information on the billboard. That is why posters should be as concise, bright and enticing as possible. In other words, in this short period of time, information must be noticed, recognized and deposited in memory. The latter is possible only if the advertising poster aroused the interest of the person who saw it. Otherwise (if the billboard "does not catch") the advertiser's funds will be wasted.

Pros and cons of placing on billboards

The main advantages of billboards include the following:

Due to their size and use of strong visuals, billboards attract more attention than many other outdoor advertising tools;
Such constructions can be used for targeted influence on a certain local group - residents of a particular area;
Shields cannot be attributed to the advertisement that the consumer sees only once. Walking down the street several times a day, week or month, a person will notice such an advertisement the corresponding number of times. The same effect (multiple appearances) is achieved by placing billboards in different parts of the city.
Despite the fact that the cost of renting a billboard can vary from 10 to 60 thousand rubles a month, this method of promotion remains relatively inexpensive, especially when compared with advertising on radio or television.
Billboards are installed on the busiest highways, therefore, a huge number of people see them every day.
With a sufficient number of billboards placed around the city, it is possible to cover almost all consumers and achieve a high frequency of contact with potential customers.

"Creativity" of urban vandals, after which it takes a long time to restore the billboard;
Exposure to adverse environmental conditions - snow, rain, strong winds, and so on;
The presence of more than serious visual competition, which includes other advertising installations, structures, vehicles, and even people;
Lack of good places to place a billboard;
The duration of the manufacture and installation of the billboard.

The effectiveness of billboards, taking into account the profile of the enterprise

Large shopping centers, leisure centers, retail stores, various salons, including beauty salons;
Cinemas, youth nightclubs;
Car dealerships and car manufacturers;
Dental centers, private hospitals and medical centers;
Notary and law firms;
Private educational institutions - kindergartens, centers, various courses;
Fitness clubs and other sports centers;
Car services, car washes, service stations;
Catering outlets - restaurants, cafes, fast food chains.

However, billboards will not be effective for the following types of businesses:

manufacturing enterprises;
enterprises whose profile is the production of products for import;
any small firms, retail outlets, institutions with a small advertising budget.

Types of billboards and their differences

To size:

Billboards - 3×6 m;
Superboards - 4×14 m;
Supersites - 5×15 m;
Cityboards (scrollers) - 2.7 × 3.7 m;
Pillars - 2.7 × 3.7 m;
City formats - 1.2 × 1.8 m.

By form:

Ordinary, square or rectangular shields;
Figured shields;
Shields with 3D elements that extend beyond the standard square or rectangle.

By audience:

Aimed at car enthusiasts. As mentioned earlier, most often billboards, in particular billboards, are focused on drivers and passengers of a car.
Aimed at pedestrians. Such billboards can also be placed on sidewalks (they can be smaller structures than billboards, namely city boards, pillars, city formats).

By the number of sides;

Unilateral;
Double-sided;
Tripartite.

* It should also be emphasized that not all sides of multilateral shields are equal. The one that is located perpendicular to the highway or pedestrian flow is the main one, since it is viewed better than others.

Prices for placement of advertising media

It is extremely difficult to determine the average price for advertising on a billboard, as it varies depending on many factors and, above all, on the city where the marketing campaign is being carried out. So, in general, outdoor advertising on the most common type of billboards - billboards, varies from 10 to 150 thousand rubles. Of course, such a gap is frightening and perplexing. However, below are the most current prices for such advertising in different localities, which will be able to clarify the situation with the price of the service.

The cost of placing on billboards (thousand rubles per month);

Moscow - about 60;
St. Petersburg - about 40;
Novgorod, Novosibirsk, Yekaterinburg - 20-25;
Regions - from 10 to 30.

Price for accommodation in city formats:

Moscow - 20;
St. Petersburg - 10-15;
Yekaterinburg - about 8.

Please note that the list of prices includes the most popular billboard formats. The cost of a supersite in Moscow or St. Petersburg can be several times higher.

It should also be emphasized that the following factors influence the price of advertising on a billboard or other billboard:

Type of construction (one-, two- or three-sided);
Billboard size and type (billboards, supersites, etc.)
Lease term;
Placement period (if you want to start advertising a product or service on billboards urgently, the price will be higher);
Liveliness and advantageous location of the carrier.

How to attract attention to billboard advertising?

Use a targeted message. Neither the driver nor the pedestrian will look at your shield for a long time. You also need your message to hook a person right away, promising to satisfy exactly the need that he has. And remember, he might not even suspect about this need, dream or desire, of course, until he saw your shield.
Design. Remember, a picture means more than words. Try to make sure that the message and the picture play in the same team.
Brevity is the soul of wit. As mentioned earlier, you only have 10-15 seconds to remember. Do not use long sentences and lengthy descriptions. Ideally, you need to invest in 5-7 words.
Brightness. Black letters on a white background and a neutral image are unlikely to attract attention. Try to make the picture as juicy and attractive as possible.
Humor and / or outrageous. Good humor and even jokes "on the verge of a foul" can do a good job. If the ad is just funny and witty, it will be remembered. If advertising will shock the public, the same thing will happen.

Billboard: rent or install yourself

This question cannot be answered unambiguously. Everything will depend on how your advertising campaign is planned. If you are going to advertise your product or service through billboards only during promotions and discounts, as well as during the growth of seasonal sales, installing a billboard will not justify itself. But if you give such advertising all the time, you should still install it yourself, because it will pay for itself in about six months after installation.

The process of installing your own shield

Installing your own billboard has many benefits. First, you won't have to pay rent. Secondly, you can advertise on both sides without having to coordinate this issue with a third-party advertising organization. Thirdly, you can change the banner when you need it.

In order to install your own shield, you must:

Coordinate the issue of installation with the owner of the facility or site. This measure is necessary if you want to place a billboard in a territory that is not yours. If the shield is located near the road, the issue must be agreed with the FSO and the traffic police.
You can make a shield yourself, or you can place an order in a specialized organization. Such companies, as a rule, charge about 250-300 thousand rubles for this.
Banner printing. You can order an advertising poster from an advertising company or from a printing house. The cost of printing will be about 200-300 rubles per 1 sq.m.

A billboard or billboard is a type of outdoor advertising. Billboards are installed along the highways, city streets, on the facades and on the roofs of buildings. Such advertising is in great demand among companies that need to make their product memorable, fix a trademark or brand in the minds of pedestrians and motorists.

Choose an installation location

The value of the location of the billboard is determined by the flow of the car or pedestrian zone. The larger it is, the higher the rental price will be. The most promising places are the central streets of the city, access roads to cities and exits from them, transport interchanges, places near popular objects (large shopping centers and entertainment complexes, airports and railway stations) and other places where there is a lot of car traffic.

The hardest part is getting permission...

To start a billboard installation business, you will need to overcome many administrative barriers. “This business is profitable, but very corrupt,” say some businessmen. It already has its own players with a good administrative resource.

The installation of a billboard should be preceded by many procedures: approvals and permits. But before going through the authorities, it is necessary to register an individual entrepreneur or LLC. No one will talk to an ordinary individual.

First of all, you should visit the local administration and take from them a copy of the general plan of the city, on which you indicate the desired places for installing shields. According to your application, land acquisition and determination of the boundaries of the site for the installation of the structure must be made. All this costs money, and the entrepreneur will have to pay them.

Further, according to the law, it will be required to hold an auction for the right to lease. And therein lies the main obstacle to business. The competition assumes that not only you can rent this site. It turns out that you organized everything, spent money, and a larger advertising network will win the competition for the right to rent.

But still, you won the competition, you received the land - the main stage has been passed. Next, you should order a shield design project. This should be taken seriously, and such projects should only be done by specialized organizations. The finished project must be coordinated in a number of instances: in the housing and communal services, traffic police, city architecture, road workers, signalmen, and so on. The list of approvals may contain more than 20 organizations with which it is necessary to coordinate the installation of the shield. All this requires a lot of time and effort, but without this it is impossible to start work on installing shields.

Once all approvals are received, the architecture signs the document and gives permission to install the billboard. It remains the final stage - to make and install a billboard. According to the law, such work can only be carried out by construction companies that have SRO approval. That is, it will be illegal to weld the structure in the garage and install it with the help of two of your workers, although it will be much cheaper.

The manufacture of a shield structure in a construction company will cost between 100 and 150 thousand rubles. Here you can already start looking for advertisers and those companies that will print banners and install them.

Admission ticket

Experts name different amounts of cash investments that go to the approval, manufacture and installation of one billboard. In Moscow and the region, for example, the total cost of installing one shield, including the purchase of a structure, installation, approvals, is at least 1 million rubles. But you can rent it for 70 - 80 thousand rubles. per month. Rates are much lower in the regions. Installing a shield there will cost from 400 to 600 thousand rubles, but it will also be possible to hand it over for a smaller amount: from 10 to 30 thousand rubles. per month.

Such a business does not start with one shield, but at least with five. The total investment in the project, therefore, is at least 2 - 4 million rubles.

Other formats…

Although there is another way to organize such a business. This is the installation of advertising flags on lighting poles. The construction format is small, about 0.8 x 1.2 m. Unlike traditional billboards, there is no need to knock out the ground, go through an auction and an unimaginable number of approvals. All that is needed is coordination with the city electric networks, architecture and the traffic police.

The manufacture and installation of such flags is much simpler and cheaper, and their total number may be limited only by the number of lighting poles in the city. One flag is handed over, on average, for 500 rubles a month, and there can be more than two thousand of them. Here also consider.

In almost all regions of the country, there are many companies that provide businesses and individuals with rental and installation services for billboards, which are often called billboards.

But, despite this, a business in such a market niche can be quite profitable and successful. When organizing it, one should take into account all the key features of a passive business, like any business related to rental.

In fact, the rental business allows the entrepreneur to receive money “out of thin air”, because the landlord does not make any effort for this. The only thing required of him is to find tenants, but often they find the landlord themselves. Thus, the business of renting and installing billboards is similar to a regular rental, but it has several important nuances.

First of all, in addition to simply finding customers, employees of such an organization must constantly take care of maintaining the technical serviceability of structures. Unfortunately, billboards installed in the city may lose their functionality due to adverse weather conditions or at the hands of vandals. Secondly, the duties of the employees of such companies are entrusted with ensuring the correct installation of the structure and subsequent repair work.

In addition, you should carefully study any changes in local and federal laws that may prohibit or restrict certain advertising, and promptly adjust the location of billboards or their content.

To many, all this will seem too complicated, but in fact, this type of advertising business is not only passive, but also very profitable. Here, the costs of the entrepreneur are negligible, especially in comparison with the income received. The billboard installation and rental business has excellent prospects for expansion, which over time can provide the entrepreneur with a solid income. The increase in profits is especially good during the New Year and other holidays, as well as election campaigns.

The more people notice this advertising structure, the more return the entrepreneur from such advertising. Here it is important to take into account the presence and number of trees in the area, which can block the view of the poster on the billboard, as well as the number of unfinished buildings, which, after construction is completed, can also become a serious obstacle to visibility. Thus, the most suitable places to place billboards are large city squares, as well as a strip of land along roads and highways.

Entrepreneurs who have been working in this market for more than one year and have already been able to create a billboard installation and rental business recommend following a few rules. The first of these was mentioned earlier, and consists in the high visual availability of the shield. The second rule is the correct choice of the target audience, which will significantly improve the work with clients.

For example, it is profitable to advertise auto goods stores near the offices of large companies or near service stations, car dealerships. Be sure to also take into account the so-called relevance factor, that is, do not advertise stores for adults near children's parks. The third rule is that you need to determine the circle of potential consumers of advertising and place billboards exactly where they will be most in demand.

An important success factor is the use of the provided space with maximum benefit. To do this, a variety of designs of billboards have been developed today, and choosing the right one for such a variety is not difficult. Of course, all rules and recommendations are of a general nature, and therefore, for each region and market, some individual characteristics should be taken into account.

When compiling a business plan for this branch of the market, it is necessary to take into account as accurately as possible all material costs that cannot be avoided. First, it is the cost of renting office space. The office of the company must be suitable in size and meet all the requirements of the entrepreneur.

Then the question of production must be taken into account. Here it should be clearly defined whether the company will install billboards on its own, or buy them, and then provide rental services. There are several well-founded points of view. On the one hand, own production and installation of advertising structures is beneficial, because in this way the entrepreneur becomes independent of suppliers.

But at the same time, such production requires significant investments, suitable premises, equipment and qualified personnel. Therefore, many entrepreneurs prefer to buy advertising structures, overpaying a little, but at the same time getting rid of a number of problems. As an additional service, a company that installs billboards and provides services for renting them can offer customers the printing of advertising posters according to the sketches of the customer.

Having organized such a business, an entrepreneur must be prepared for some difficulties, or pitfalls. The main problems are related to the coordination and obtaining permits for the installation of advertising structures within the city. For example, in order to place a banner on a house, you need the consent of the residents and a permissive license from the HOA.

The placement of a billboard on a municipal territory requires the agreement of the municipality without fail. You also need to pay a fee for this. However, the main snag is that the advertising structure should not violate the overall architectural appearance of the city. In general, even taking into account all the possible difficulties, the billboard installation and rental business is promising and has high profitability.

Due to the fact that billboards are installed in places with high traffic of people (usually near bus stops), advertisers are willing to rent such places. The construction of the city-format is quite strong. It is based on a three-dimensional frame framed with a steel or aluminum profile. The front and back sides are covered with plexiglass or molded polycarbonate. A light source is installed between the posters to illuminate advertising at night. Also, it is not uncommon for a city-format design to mount a scrolling mechanism, which allows you to “broadcast” up to four advertising messages from different advertisers.

How much can you earn from billboards

The cost of advertising space depends on the location of the billboard. On average, a month of placement costs the customer 20,000 rubles. Approximately 1,500 rubles. goes to print a poster and 7000 r. for layout design. The income of the entrepreneur is from 30 to 50% of the proceeds. Expenses are related primarily to the lease of land, labor costs, fuel and taxes. From one billboard comes out from 7,000 to 10,000 rubles. Accordingly, from 15 shields, the potential income is about 105,000 - 150,000 rubles. per month. Provided, of course, that all advertising spaces are occupied by permanent advertisers.

Step by step plan to start a billboard business

The main difficulty in starting a business on billboards is to get permission to install a billboard in a place of interest. Depending on the type of property, you will have to apply either to a private owner or to the state. For example, if the city format is planned to be installed on the territory of a shopping center, then you should contact the administration of the shopping center to rent a place. If the shield is planned to be installed in a park, square or near a bus stop, then in order to conclude a lease agreement, you must contact the city administration (KUGI).

Do I need a permit to install billboards?

After the place is rented, a permit for the installation and operation of the structure must be obtained, which is also obtained from the city administration (department of architecture). The development of an advertising structure can be ordered from a company engaged in the production of metal structures (metal frames). In addition, you will need to find a designer who will be ordered to develop a layout. Alternatively, you can negotiate for a certain percentage with an advertising agency. You can also work with them to attract customers.

How much money does it take to start a billboard business

The cost of installing one billboard in a city format can vary from 70 to 120 thousand rubles. The main costs will be associated with the cost of construction materials and permits. Since it makes no sense to start a business with one shield, you will need to install at least 5 structures (the more, the better), which implies investments in the amount of 350 to 600 thousand rubles. The return on investment, taking into account the period for the promotion of the business, will be at least 12 months.

What equipment to choose for the production of outdoor advertising-city-format

In the event that you want to open your own city-format outdoor advertising business, and you need to choose the necessary equipment, then first of all you should pay attention to what kind of advertising plan you want to create. The most popular are billboards and billboards. For the manufacture of such structures, first of all, you need to take care of a large room in which outdoor advertising will be created, and after that you need to additionally purchase the following elements for this process:

welding industrial machines;
cutting machines;
mallets, drills and other tools;
printing press for direct application of advertising;
a van with a ladder, if anyone needs an outdoor advertising installation service.

Which OKVED to indicate when registering a business

For registration, you need to specify the OKVED code 74.40 - advertising activities. You can also specify the OKVED code 22.22 - printing activities that do not belong to other groups. Due to the fact that information is placed on billboards and billboards, you can additionally indicate the OKVED code 92.40 - services of advertising agencies.

What documents are needed to open

When opening a production for the creation of outdoor advertising in a city format, you need to have the following documents:

a certificate indicating the registration of your own individual entrepreneur or LLC;
statement;
identification code and passport data of the owner (can be copied).

Which taxation system to choose for business registration

The best option for a taxation system for starting an outdoor advertising production is a single tax on temporary income.