The Profit Potential of Wooden Billboards: Simple Design, Exceptional Returns

When it comes to beauty, some look to luxury cars, but there’s a distinct appeal in assets that generate steady income. For me, one standout example is the classic wooden billboard sign. It might lack the sleek lines of a Ferrari, yet its straightforward design and reliable returns make it a truly valuable investment. 

A Straightforward Structure

Wooden billboards are refreshingly simple: just a few vertical poles, cross beams, and a plywood face, all covered with a vinyl ad. This unembellished design is an excellent example of efficiency—minimal components, maximum impact. While some may think of billboards as complex, the wooden variety has remained nearly the same for over a century. The only significant update in recent decades was the shift from hand-painted ads to vinyl, which has streamlined production and reduced costs. 

Affordable to Construct

Constructing a wooden billboard remains highly affordable, with today’s costs averaging between $3,000 and $5,000, depending on materials and location. In contrast, the average cost of building a steel billboard has now risen to between $60,000 and $90,000 due to escalating steel and labor prices. This low entry cost for wooden billboards opens doors for investors looking for significant returns with minimal initial capital.

Impressive Economic Returns

Typical real estate investments yield an annual return of around 5% to 10%, while wooden billboards often far exceed this, with returns reaching 50% or more due to demand for affordable outdoor advertising. A wooden billboard built for $5,000, for example, often generates similar annual revenue, demonstrating its strong profitability. With annual leasing contracts, billboard owners can secure steady income with little hands-on effort. 

Conclusion

In its simplicity, the wooden billboard offers more than just a functional advertising medium—it’s a high-efficiency, income-generating asset with impressive returns. For investors seeking a blend of affordability and profitability, the wooden billboard continues to stand out as a valuable option.

By Frank Rolfe

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.