Rebuilding From Scratch: Why Wooden Billboards Are Still the Best Investment Today

What Would I Focus On If I Started Over? Wooden Billboards Offer the Highest ROI

One of the most frequent questions I get is, “What would you do if you had to start over?” The answer is simple: I’d focus on wooden billboards. Despite being overlooked in the current market, they still deliver the highest return on investment in the industry, offering an unbeatable combination of affordability, practicality, and financial sense for advertisers, landowners, and billboard owners alike.

The Numbers Speak for Themselves

The cost to build a wooden billboard is approximately $5,000 to $10,000 today, depending on the structure and size. In comparison, a steel monopole can cost as much as $60,000 to $90,000, making wooden structures a significantly lower investment upfront. While wooden signs typically rent for $300 to $400 per month, steel monopoles in high-traffic areas often rent for $3,500 per month. The ROI on wooden signs is, therefore, substantially higher—nearly 50% annually, compared to the 10% to 20% return of steel monopoles. ​(Wallet Minded)​ (Billboard Loans)​ (OutdoorBillboard)

Location, Location, Location: Wooden Signs Have Lower Risk

Securing a location is essential for any billboard business. Monopoles are often erected in prime urban areas, where the risk of new development encroaching on your billboard is always present. Wooden billboards, on the other hand, are often placed on farmland or rural areas where development is decades away, if ever. This means wooden signs have much lower risk of losing their location due to new construction​.

Easier to Find New Locations

The odds of finding a legal, feasible location for a wooden billboard compared to a steel monopole are vastly in favor of wooden structures. For every one legal location available for steel monopoles, there are likely 100 potential locations for wooden billboards. This ease of entry makes wooden signs the obvious choice for entrepreneurs looking to grow quickly​.

Scaling Up Faster with Wooden Signs

Wooden billboards provide the ability to scale your operation more quickly. With more available locations, it’s easier to hit critical mass, whether you’re looking for a reliable side income or a replacement for your day job. Wooden billboards allow you to grow faster and with less capital, enabling you to establish a solid income stream in a fraction of the time.

Diversity Lowers Risk

In the world of investment, diversification is key to minimizing risk. The same logic applies to billboard portfolios. It’s far safer to own 10 wooden billboards, each costing around $5,000, than to rely on a single steel monopole worth $60,000. Losing one of those wooden signs won’t break the bank, but losing a monopole could be financially devastating.

Lower Maintenance, Less Hassle

Another advantage of wooden signs is the reduced maintenance. Unlike monopoles, which often have lights that burn out or need repairs, wooden billboards usually don’t feature lighting systems, eliminating that headache. Additionally, their lower height makes them less prone to wind damage, reducing ongoing repair costs​. (Outdoor Billboard University)

Easier to Rent in Tough Economic Times

In periods of economic downturn, it’s far easier to rent a billboard for $350 per month than for $3,500 per month. Advertisers can get a wooden billboard for the same price as a one-time newspaper ad, and the value for money makes wooden signs attractive even when budgets are tight. This has made wooden billboards recession-resistant and consistently in demand.

A Proven Success Story

Many of the largest billboard companies today started with wooden signs. Companies like Clear Channel and Lamar built their businesses on these low-cost structures. This approach has proven successful for decades, with wooden billboards playing a pivotal role in the industry's early growth.

Conclusion

If I had to start over today, I’d undoubtedly focus on wooden billboards. With their high return on investment, lower risk, and ease of entry, they continue to be the best choice for anyone looking to build a successful outdoor advertising business. In 2024, they remain as relevant as ever.

Frank Rolfe started his billboard company off of his coffee table, immediately after graduating from college. Although he had no formal training on the industry, he learned as he went, and developed his own unique systems to accomplish things, such as renting advertising space. Frank was formerly the largest private owner of billboards in Dallas/Ft. Worth, as well as a major player in the Los Angeles market.