The modern Russian market is very wide. One of the areas where you can make good money is advertising boards or billboards.

First of all, conduct a marketing analysis of the advertising market, find out future competitors, and assess the risks. Then calculate the required costs and expected profit. Include laws related to advertising activities in your advertising agency's business plan. And be sure to think about how you will promote your services.

Marketing Market Review

When conducting your marketing analysis, first make a list of organizations that provide billboard space. Get maps of billboard locations, find out prices and discounts on advertising. Next, when thinking through a business plan, determine the positive and negative aspects of this area of ​​​​activity.

The disadvantages include the following features:

• it is necessary to ensure the technical serviceability of billboards (replacing, at your own expense, wind-torn, dilapidated banners, adjusting the mechanism of rotating and luminous elements);
• change advertising content and location of billboards in accordance with local and federal laws.

In order to reduce risks, namely to ensure that the billboards are not empty, draw a plan of profitable vacant places in the city and suburbs. These can be squares, avenues, streets with heavy traffic, large stores, shopping centers, places near parks, squares, boulevards, etc. The main criterion is high traffic flow of people. In addition, take into account the visibility of the advertisement, that is, are there any trees or buildings, including those under construction, that block the billboard.

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Financial analysis of activities

Before you start advertising, calculate the required start-up capital, monthly expenses and possible profit. It is important to consider that the amount of initial funds depends on whether you will make banners yourself or buy ready-made advertising banners. If you have special equipment for making banners, you can make additional profit in addition to renting advertising on billboards. Therefore, let’s take the first option into account and consider it using the example of a large city in Russia.

So, to rent street billboards you will need, in rubles:

• individual entrepreneur registration - 10,000;
• office equipment and production equipment for installation - 90,000;
• tented gazelle - 400,000;
• equipment for working with PVC banner fabric - 500,000.

Total: starting capital must be at least 1 million rubles.

Monthly payments will include:

• rental of industrial premises (about 100 sq.m.) - 40,000;
• wages to employees (managers, welders, assemblers, assemblers, driver, electrician) - 250,000.

That is, the cost of maintaining the organization is about 300,000 rubles per month.

Now you can calculate how profitable a business plan for renting billboards is. The average cost of one space on a billboard measuring 3*6 meters is 15,000 rubles. The shield has two sides, so it can be sold for 30,000 a month. If a company has at least 50 such shields in the city, then the monthly revenue is 1.5 million rubles.

But, as practice shows, in the first year of operation, income is 2-3 times less than expected, since the agency has not yet developed and developed contacts. Therefore, the business will pay off in about six months.

Advertising boards (billboards) - tall structures with bright images and enticing slogans, have long become an invariable attribute of the streets of all cities. They are used to promote products, services, retail outlets, brands, social events and more. However, is this popular advertising element really effective and universal? In this article we will try to answer this question by analyzing in detail all the advantages and disadvantages of billboards, their relevance for a particular type of business and other features of this outdoor promotion tool.

What is a billboard

An advertising board (most often a billboard) is an outdoor structure whose main function is to promote any services or goods. As a rule, such billboards are installed in close proximity to busy highways and roads, since such placement allows them to attract the attention of drivers and passengers of the vehicle, as well as passers-by who can easily see the billboard.

When it comes to motorists, they typically have 10 to 15 seconds in which to notice and read the information on a billboard. That is why posters should be as concise, bright and enticing as possible. In other words, in this short period of time, information must be noticed, recognized and stored in memory. The latter is possible only if the advertising poster aroused the interest of the person who saw it. Otherwise (if the billboard doesn’t “click”), the advertiser’s funds will be wasted.

Pros and cons of advertising on billboards

The main advantages of billboards include the following:

• Due to their size and use of strong visual imagery, billboards attract more attention than many other outdoor advertising tools;
• Such designs can be used to target influence on a specific local group - residents of a particular area;
• Billboards cannot be classified as advertising that the consumer sees only once. Walking down the street several times a day, week or month, a person will notice such advertising a corresponding number of times. The same effect (multiple appearances) is achieved by placing billboards in different parts of the city.
• Despite the fact that the cost of renting a billboard can vary from 10 to 60 thousand rubles per month, this method of promotion remains relatively inexpensive, especially when compared with advertising on radio or television.
• Billboards are installed on the busiest highways, which means they are seen by a huge number of people every day.
• With a sufficient number of billboards placed throughout the city, you can reach almost all consumers and achieve a high frequency of contact with potential clients.

• “Creativity” of urban vandals, after which it takes a long time to restore the billboard;
• Exposure to adverse natural conditions - snow, rain, strong wind, etc.;
• The presence of more than serious visual competition, which includes other advertising installations, structures, transport and even people;
• Lack of good places to place a billboard;
• Duration of billboard production and installation.

The effectiveness of billboards taking into account the profile of the enterprise

• Large shopping centers, leisure centers, retail stores, various salons, including beauty salons;
• Cinemas, youth night clubs;
• Car dealerships and car manufacturers;
• Dental centers, private hospitals and medical centers;
• Notary and law firms;
• Private educational institutions - kindergartens, centers, various courses;
• Fitness clubs and other sports centers;
• Car services, car washes, service stations;
• Catering outlets - restaurants, cafes, fast food chains.

However, billboards will not be effective for the following types of businesses:

• manufacturing enterprises;
• enterprises whose profile is the production of products for import;
• any small firms, retail outlets, institutions with a small advertising budget.

Types of billboards and their differences

To size:

• Billboards - 3x6 m;
• Superboards - 4×14 m;
• Supersites - 5×15 m;
• Cityboards (scrollers) - 2.7×3.7 m;
• Pillars - 2.7x3.7 m;
• City formats - 1.2×1.8 m.

By form:

• Regular, square or rectangular shields;
• Figured shields;
• Shields with 3D elements that protrude beyond the standard square or rectangle.

By audience:

• Aimed at car enthusiasts. As mentioned earlier, most often advertising boards, in particular billboards, are aimed at drivers and passengers of cars.
• Targeted at pedestrians. Such billboards can also be placed on sidewalks (these can be smaller structures than billboards, namely cityboards, pillars, city formats).

By number of sides;

• One-sided;
• Double sided;
• Tripartite.

* It should also be emphasized that not all sides of multilateral shields are equal. The one that is located perpendicular to the highway or pedestrian flow is the main one, since it is visible better than others.

Prices for advertising media placement

It is extremely difficult to determine the average price for advertising on a billboard, since it varies depending on many factors and, above all, on the city where the marketing campaign is being conducted. So, in general, outdoor advertising on the most common type of billboards - billboards - varies from 10 to 150 thousand rubles. Of course, such a gap is frightening and perplexing. However, below are the most current prices for such advertising in different localities, which can clarify the situation with the price list for the service.

Cost of placement on billboards (thousands of rubles per month);

• Moscow - about 60;
• St. Petersburg - about 40;
• Novgorod, Novosibirsk, Yekaterinburg - 20-25;
• Regions - from 10 to 30.

Price for accommodation in city formats:

• Moscow - 20;
• St. Petersburg - 10-15;
• Ekaterinburg - about 8.

Please note that the list of prices includes the most popular billboard formats. The cost of a supersite in Moscow or St. Petersburg can be several times higher.

It should also be emphasized that the following factors influence the price of advertising on a billboard or other billboard:

• Type of design (one-, two- or three-sided);
• Size and type of advertising board (billboards, supersites, etc.)
• Lease term;
• Placement period (if you want to start advertising a product or service on billboards urgently, the price will be higher);
• Liveliness and advantageous location of the carrier.

How to attract attention to advertising on a billboard?

1. Use a targeted message. Neither the driver nor the pedestrian will look at your sign for long. You need your message to hook the person immediately, to promise to satisfy exactly the need that he has. And remember, he might not even be aware of this need, dream or desire, of course, until he saw your shield.
2. Design. Remember, a picture means more than words. Try to make the message and the picture play on the same team.
3. Brevity is the soul of wit. As mentioned earlier, you only have 10-15 seconds to be remembered. Avoid long sentences and lengthy descriptions. Ideally, you need to invest in 5-7 words.
4. Brightness. Black letters on a white background and a neutral image are unlikely to attract attention. Try to make the picture as juicy and attractive as possible.
5. Humor and/or shocking. Good humor and even jokes “on the verge of a foul” can do a good job. If the ad is simply funny and witty, it will be remembered. If advertising shocks the public, the same thing will happen.

Billboard: rent or install yourself

This question cannot be answered unambiguously. Everything will depend on how your advertising campaign is planned. If you are going to advertise your product or service through billboards only during promotions and discounts, as well as during the growth of seasonal sales, installing a billboard will not justify itself. But if you advertise like this constantly, you should still install it yourself, because it will pay for itself approximately six months after installation.

The process of installing your own shield

There are many benefits to installing your own billboard. Firstly, you will not have to pay rent. Secondly, you can advertise on both sides without having to coordinate this issue with a third-party advertising organization. Thirdly, you will be able to change the banner when you need it.

In order to install your own shield you need:

• Coordinate the installation issue with the owner of the object or site. This measure is necessary if you want to place a billboard on an area that is not on your property. If the shield is located near the road, the issue must be agreed upon with the FSO and the traffic police.
• You can make a shield yourself, or place an order from a specialized organization. Such companies, as a rule, charge about 250-300 thousand rubles for this.
• Banner printing. You can order an advertising poster from an advertising company or a printing house. The cost of printing will be about 200-300 rubles per 1 sq.m.

An advertising board, or billboard, is one of the types of outdoor advertising. Advertising boards are installed along highways, city streets, on the facades and on the roofs of buildings. Such advertising is in great demand among companies that need to make their product memorable and cement a trademark or brand in the minds of pedestrians and motorists.

Choosing an installation location

The value of a billboard location is determined by the flow of traffic or pedestrian traffic. The larger it is, the higher the rental price will be. The most promising places are the central streets of the city, access roads to and from cities, transport interchanges, places near popular objects (large shopping centers and entertainment complexes, airports and railway stations) and other places where there is a lot of vehicle traffic.

The hardest thing is to get permission...

To start a business installing billboards, you will need to overcome many administrative barriers. “This business is profitable, but very corrupt,” say some businessmen. It already has its own players with good administrative resources.

The installation of an advertising board must be preceded by many procedures: approvals and permits. But before going through the authorities, you need to register an individual entrepreneur or LLC. No one will talk to an ordinary individual.

The first thing you should do is visit the local administration and get a copy from them from the general plan of the city, on which you indicate the desired locations for installing shields. According to your application, land acquisition and determination of the boundaries of the site for installation of the structure must be carried out. All this costs money, and the entrepreneur will have to pay it.

Further, according to the law, an auction will be required to grant the right to lease. And therein lies the main obstacle to business. The competition assumes that you are not the only one who can rent this plot of land. It turns out that you have organized everything, spent money, and a larger advertising network will win the competition for the right to rent.

But still, you won the competition, received the land - the main stage has been completed. Next, you should order a design for the shield design. This must be taken seriously, and such projects should only be undertaken by specialized organizations. The finished project must be approved by a number of authorities: housing and communal services, traffic police, city architecture, road workers, signalmen, and so on. The approval list may contain over 20 organizations with which it is necessary to coordinate the installation of the shield. All this requires a lot of time and effort, but without this you cannot begin work on installing the shields.

Once all approvals are received, the architecture signs the document and gives permission to install the billboard. The final stage remains - to manufacture and install the billboard. According to the law, such work can only be carried out by construction companies that have SRO approval. That is, welding the structure in a garage and installing it with two of your own workers will be illegal, although it will be much cheaper.

Manufacturing a shield structure in a construction company will cost between 100 - 150 thousand rubles. Here you can already start looking for advertisers and those companies that will print banners and install them.

Admission ticket

Experts name different amounts of money that go into the approval, production and installation of one billboard. In Moscow and the region, for example, the total cost of installing one switchboard, including the purchase of the structure, installation, and approvals, is at least 1 million rubles. But you can rent it out for 70 - 80 thousand rubles. per month. In the regions, prices are much lower. Installing a shield there will cost from 400 to 600 thousand rubles, but you can rent it out for a smaller amount: from 10 to 30 thousand rubles. per month.

You don’t start such a business with one shield, but at least with five. The total investment in the project, therefore, is at least 2 - 4 million rubles.

Other formats...

Although there is another way to organize such a business. This is the installation of advertising flags on lighting poles. The design format is small, about 0.8 x 1.2 m. Unlike traditional billboards, there is no need to knock out the ground, go through an auction and an incredible number of approvals. All that is needed is coordination with city power grids, architecture and the traffic police.

The production and installation of such flags is much simpler and cheaper, and their total number can be limited only by the number of lighting poles in the city. One flag is rented out, on average, for 500 rubles a month, and there can be more than two thousand. So consider it.

In this material:

An advertising board, also known as a billboard, is the most accessible and popular place for placing outdoor advertising. Huge images and inscriptions are visible from many viewing angles and at great distances, and the inability to hide advertising or change the channel, as if it were the Internet or TV, makes it possible to practically forcefully convey information to people. A business plan for installing billboards is needed not only for step-by-step organizational actions, but also to determine the risks of the chosen direction of business, analyze available locations and study advertising laws.

Description of the business project, its advantages

The goal of the project is to organize a business for installing billboards in a city with a population of 500 thousand people and then renting out advertising space. Additional services may be provided.

Tasks: making 30 billboards, searching for a location within the city, concluding a lease agreement with municipal authorities, installing billboards and finding clients.

Implementation methods: independent production or purchase of ready-made structures with subsequent installation in selected areas of the city.

Business advantages:

• visibility – outdoor advertising conveys information 24/7 and does not depend on external factors, such as prime time on TV or banner blockers on the Internet. People willy-nilly pay attention to the information on billboards, unconsciously remembering phone numbers and addresses of the company;
• accessibility – the cost of renting a billboard is inexpensive, but at the same time, booking a place for 3-6 months allows the entrepreneur to instantly recoup the investment;
• demand - given that advertising on billboards is designed for a wide audience, clients line up to get the coveted place to place their services.

Disadvantages of business:

• the need for large investments - the production of billboards, subsequent installation and maintenance require a lot of money. In addition, a staff and office staff are required to maintain order records;
• influence of weather conditions - sharp gusts of wind, hurricanes can damage structures up to complete destruction. In these cases, the restoration of the shields is carried out at the expense of the entrepreneur;
• Difficulties with paperwork - getting a place to rent to install a billboard is extremely difficult. It is necessary to take into account not only compliance with the laws on advertising and placement of metal structures within the city, but also take into account the flow of people and vehicles in the selected area.

Features of making money by renting out billboards

Features of the billboard rental business are as follows:

• constant search for clients - even if all the places are occupied in the next six months, it is necessary to look for new clients, advertise for rent, and also develop the business by manufacturing and installing new billboards;
• Maintenance – structures must be constantly monitored and repaired if necessary. Moreover, this must be done as soon as possible, otherwise clients will be unhappy due to the loss of paid time during which the billboard was unavailable for viewing information;
• compliance with current legislation on advertising and monitoring of new bills - non-compliance of the design with regulations is punishable by a fine of 50 thousand rubles.

These are just the main points that require a team of installers and material to maintain the shields in excellent condition. At the same time, a staff of office staff is required to maintain documentation. An entrepreneur is obliged to negotiate with potential clients, develop profitable offers, and develop his business.

Stages of business organization

Registration of activities

Theoretically, a billboard rental business can be organized as an individual entrepreneur. But in practice, this is considered a bad idea, because not a single serious client in the form of an organization or manufacturer will contact an individual entrepreneur if there are many full-fledged agencies in the LLC status around.

Registration of a legal entity involves applying to the Federal Tax Service with the necessary package of documents:

1. The decision to establish an LLC.
2. Minutes of the meeting of founders, if there is more than one person.
3. Charter of the company.
4. Documentation on authorized capital.
5. Details of the founders (passport, TIN).
6. Legal address of the company.
7. Paid state duty (4,000 rubles).

At the same time, you need to choose a taxation system based on potential earnings and scale of activity. The simplified tax system and UTII are considered profitable options.

It does not include:

• printing of advertising products;
• market analysis;
• interaction with the public;
• production and production of advertising photographs;
• commercials on TV, radio, cinema.

Obtaining permits

First of all, permission to install the structure is required from the owner of the land plot. If it is an individual or legal entity, then a land sublease agreement is concluded with subsequent installation of the structure.

Before this, the owner of the site must contact the municipal authorities, presenting them with a plan for installing a billboard and documentation of sublease. If the billboard complies with the law on advertising and does not spoil the appearance of the city or block road signs, then an appropriate permit for installation work is issued.

Requirements for billboard installation:

• reliable design that does not endanger surrounding buildings, cars and people;
• placement at a sufficient distance from the road, without blocking the view of drivers and pedestrians;
• placement taking into account the accessibility of the view of road signs, traffic lights, signs.

Equipment

An entrepreneur can go two ways:

1. Ordering ready-made billboards from a third-party manufacturer.
2. Manufacturing the structure in-house.

The difference is significant, because purchasing ready-made shields will cost much more. Plus - there is no need to burden yourself with additional problems and search for a team of workers.

To make your own billboards you need:

• a team of welders, wood and metal carvers;
• material – PVC panels, metal profiles, corners;
• tools – circular saws for various purposes, welding machine, drills, screwdrivers and consumables;
• workshop premises with an area of ​​100 sq. m.

A big plus of our own production is the production and sale of billboards to order.

Staff

As already mentioned, you will need a team of workers of several specialties, as well as office employees:

• secretary;
• accountant;
• 1-2 people for reporting;
• cleaning woman.

Production and installation of advertising boards

To install billboards you need a crane, a truck for transporting equipment and building materials:

• crushed stone;
• sand;
• cement;
• fastenings

How much can you earn from billboards?

Main costs for starting a business:

• purchase of equipment – ​​150,000 rubles;
• material – 30,000 rubles per billboard (900,000 for 30 copies);
• equipment rental – 100,000 rubles;
• salary – 6 team workers and 4 office employees. 10 people receive 30,000 rubles per month, which is 3.6 million rubles per year;
• work car "Gazelle" - 500,000 rubles.

Annual costs will amount to 5 million 250 thousand rubles.

• 20,000 rubles per month – the cost of renting one shield;
• 600,000 rubles – monthly earnings from all billboards;
• 7,200,000 rubles – annual income from rent.

Net profit – 7.2 million minus 5.25 million, which is 1,950,000 rubles.

Naturally, instantly organizing a business with 30 billboards is problematic due to large costs, so you can start with a few pieces and gradually develop in this direction. On the other hand, having developed a competent business plan for leasing advertising space on billboards, you can find a major investor or get a loan from a bank. Financial structures are extremely interested in the development of small and medium-sized businesses, so they willingly provide funds for promising projects.

Even rough calculations show that the business of installing billboards is a fairly profitable endeavor. The given indicators, of course, are inaccurate, because for each city the cost of materials, the level of wages and the price segment of rental space is individual. Based on this, you can find stages at which you can save money, and sometimes even invest the minimum with serious revenue.

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Due to the fact that billboards are installed in places with high traffic (as a rule, near bus stops), advertisers are willing to rent such places. The city-format design is quite durable. Its basis is a three-dimensional frame framed by a steel or aluminum profile. The front and back sides are covered with plexiglass or cast polycarbonate. A light source is installed between the posters to illuminate the advertisement at night. It is also not uncommon for a city format design to include a scrolling mechanism, which allows you to “broadcast” up to four advertising messages from different advertisers.

How much can you earn from billboards?

The cost of advertising space depends on the location of the billboard. On average, a month of placement costs the customer 20,000 rubles. Approximately 1,500 rub. it costs 7,000 rubles to print a poster. to develop the layout. The entrepreneur's income ranges from 30 to 50% of the proceeds. Costs are primarily related to land rent, labor costs, fuel and lubricants and taxes. From one billboard it costs from 7,000 to 10,000 rubles. Accordingly, from 15 shields the potential income is about 105,000 - 150,000 rubles. per month. Provided, of course, that all advertising spaces are occupied by regular advertisers.

Step-by-step plan for starting a billboard business

The main difficulty when starting a business on billboards is to obtain permission to install a billboard in the location of interest. Depending on the type of property, you will have to contact either the private owner or the state. For example, if a city format is planned to be installed on the territory of a shopping center, then you should contact the administration of the shopping center to rent a space. If you plan to install the shield in a park, square or near a bus stop, then to conclude a lease agreement you must contact the city administration (KUGI).

Do I need permission to install billboards?

After the place is rented, you must obtain permission to install and operate the structure, which is also obtained from the city administration (architecture department). The development of an advertising structure can be ordered from a company engaged in the production of metal structures (metal frames). In addition, you will need to find a designer from whom you will order the development of the layout. Alternatively, you can negotiate for a certain percentage with an advertising agency. You can also work with them to attract clients.

How much money do you need to start a billboard business?

The cost of installing one billboard in a city format can vary from 70 to 120 thousand rubles. The main costs will be related to the costs of construction materials and obtaining permits. Since there is no point in starting a business with one shield, you will need to install at least 5 structures (the more, the better), which implies an investment of 350 to 600 thousand rubles. The return on investment, taking into account the period for business promotion, will be at least 12 months.

What equipment to choose for making outdoor advertising - city format

If you want to open your own business creating outdoor advertising in a city format, and you need to choose the necessary equipment, then first of all you should pay attention to what kind of advertising you want to create. The most popular are billboards and billboards. To manufacture such structures, first of all, you need to take care of a large room in which outdoor advertising will be created, and after that you need to additionally purchase the following elements for this process:

• industrial welding machines;
• cutting machines;
• mallets, drills and other tools;
• printing press for direct application of advertising;
• a van with a ladder, if anyone needs outdoor advertising installation services.

Which OKVED code to indicate when registering a business?

To register, you need to indicate OKVED code 74.40 - advertising activities. You can also indicate OKVED code 22.22 - printing activities that do not belong to other groups. Due to the fact that information is placed on billboards and billboards, you can additionally indicate OKVED code 92.40 - services of advertising agencies.

What documents are needed to open

When opening a production facility for the creation of outdoor city-format advertising, you need to have the following documents:

• a certificate indicating registration of your own individual entrepreneur or LLC;
• statement;
• identification code and passport data of the owner (can be copied).

Which taxation system to choose for business registration

The best tax system option for opening a production facility for outdoor advertising is a single tax on temporary income.

Manufacturing technology