Industry Analysis & Industry Trends
While the industry faced declining revenue as corporate profit fell and businesses reduced spending on advertising, players are enjoying a turnaround. As the economy continues to improve, industry demand will follow suit, with businesses upping their advertising budgets and spending more on billboards as traditional advertising outlets such as TV and newspapers wane. Despite strong competition from other advertising methods, the ability to reach a large audience will drive demand for billboards and outdoor displays over the next five years... purchase to read more
Industry Report - Industry Investment Chapter
The Billboard and Outdoor Advertising industry requires a significant amount of capital due to the costs associated with billboard construction and maintenance. In addition, the industry requires labor to install and maintain displays and advertisements. In 2014, labor costs are expected to account for about 13.1% of industry revenue, while depreciation is estimated to account for 14.2%. As a result, IBISWorld estimates that the average industry enterprise spends $1.08 in capital investments (replacement of displays and equipment) for every $1.00 spent in wages. This ratio implies that the industry is highly capital intensive.
The industry's capital intensity is expected to increase during the next five years with the advent of more digital display faces... purchase to read more