This Podcast Offers A Can’t Miss Solution for OOH Companies to Make Sales Today

Good morning. I just listened to the “Billboard Futures” podcast. Desperate times call for desperate measures. Payment now for pricing at $0.50 dollars in future space is a “Hail Mary” effort in my view. I would only suggest that small, cash strapped companies use this tactic. The Big Question that nobody can answer is when does the “Lock Down” end? Once there is traffic back on the road, billboard salespeople can go back to selling billboards the way they have for 75 years. If you have space, drop your rates to fill the space. There are advertisers who will buy Outdoor for a good deal, but they have to reach an audience. Right now, I have no idea how to sell billboards when the value of those boards has been diminished by 80%+ in the last 10 days in nearly every major US city and any state that has shelter in place rules in effect. How can anyone sell NYC, DC or CHI Subways when nobody is on the subway?

Trump is saying churches will be packed on Easter. As we both know, he is full of it. But I can’t imagine a more fun time to sell Outdoor when people get back on the road. Any deal you make is a good deal! Rates will take a short term hit, but the prime inventory won’t go cheap for long.

~~I would invoice for both months at 50%.
~~OUTFRONT is hurting—BIG TIME! Their stock was trading near $31 less than a month ago. Last Friday, it was down to $7.31, but since has rebounded to $12. That is a loss of over 60% in less than a month. All the OOH publicly traded companies are in the tank. I don’t think any of them will be able to match last year’s numbers. It’s simple math. Great growth for an established billboard company is 6% to 8% annually. They are going to lose at least 8 weeks of prime selling season due to the pandemic. That’s 16% of the year. Are they going to grow revenue by 20% in the remaining months when there is traffic back on the road? NO WAY!! I’m sure most industry experts are predicting depressed rates as we come out of the coronavirus meltdown.

If I was top management at any of the Big 3, I would rework budgets for every manager and AE to give them a realistic shot at achieving a bonus or increased commission by reaching their Coronavirus Budget. Nobody is going to make 2020 budgets that were calculated in 4th Quarter of 2019. If they want their sales teams to keep hustling, they need to give them realistic new goals. Otherwise, just write off 2020 because the sales team doesn’t stand a chance to hit their budgets.

Enough….sorry for the rant!