Why Billboards Should Be Viewed as Revenue Generators, Not Expenses

When discussing billboard advertising, many salespeople misunderstand their role. They often treat billboard space as just another operational expense for businesses, like paying for utilities. However, the correct perspective is to see a billboard as an investment. When a business rents a billboard, they are investing in the potential for higher returns through increased sales and profits. Communicating this concept to advertisers forms the backbone of successful billboard sales, leading to higher client retention and renewals.

How Billboards Drive Revenue for Advertisers

The primary purpose of a billboard is to drive traffic—both in the literal and figurative sense. Think of it as a highly visible, round-the-clock salesperson, signaling to passersby to check out the advertiser’s offerings. A well-positioned and well-designed billboard pulls in potential customers, converting a portion of that audience into actual buyers. So, instead of viewing a billboard as a static advertisement, it’s more effective to see it as an active salesperson, working for the business at the cost of the monthly billboard rent—and expected to generate more revenue than it costs.

Looking Beyond Volume Sales

It’s important to remember that not every business operates on high-volume, low-cost sales like fast food chains. Many advertisers are selling high-ticket items such as cars or real estate, which require a different sales approach. The key metric isn’t just how many people walk through the door, but also how much each sale contributes to the advertiser’s bottom line. For example, if a car dealer makes a net profit of $2,000 on each car sold, and a $1,000-per-month billboard generates just one sale a month, that’s still a net profit of $1,000 for the advertiser. Similarly, if a homebuilder makes $20,000 in profit per house sold, a billboard that sells one home annually still provides a substantial return on investment.

The Power of Location-Based Advertising

One of the billboard’s greatest strengths is its ability to act as a "point of purchase" prompt. Unlike newspapers, radio, or television, billboards can be placed in locations that influence customers in real-time, like prompting a driver to exit the highway. This immediacy gives billboards a unique advantage over other media forms. When a billboard says, "Motel 6 – Exit Now," it directly leads to more bookings at that location. This clear connection between the billboard and actual sales is one of the most powerful tools in a business’s advertising arsenal.

A Shift in Perspective for Sales Success

The most successful billboard salespeople focus on demonstrating the financial value that a billboard brings to a business. They don't pitch it as an expense or just another line item in a budget. Instead, they present it as an opportunity for profit. Advertisers are far more likely to be swayed by the potential for revenue growth than by simply being asked to spend more money. When a business owner sees a billboard as a tool to generate income rather than a cost, they’re more inclined to invest. And that’s what makes the difference between a good and a great sales approach.

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.