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Controversial Approval of New LA Digital Billboards

Controversial Approval of New LA Digital Billboards

December 18th Update:

City Council approved for all 80 digital billboards to be built and owned by Metro. An article from mynewsla, it states that “Council members voted 10-4 to amend city law to establish the Transportation Communication Network, a Metro program that will establish a network of transportation communication structures and digital displays, equipped with intelligent technology components.”

December 9th Update:

Los Angeles is set to undergo its largest billboard expansion in almost two decades. A recent article by the LA Times, it discusses how 71 digital billboards were approved for installation above freeways and boulevards by the City Council.

Despite opposition from numerous neighborhood groups, the billboards, owned by the Los Angeles County Metropolitan Transportation Authority, will be built. Advocacy groups argue against the commercialization of public spaces, predicting harm to the visual environment, wildlife, and an increase in accidents. Supporters, including city and county officials, emphasize the revenue generation and traffic alert capabilities of the billboards, which are expected to predominantly display ads. The city and county will share revenues, projected to reach $300 million to $500 million over 20 years, with the potential removal of up to 300 non-digital billboards. The plan faces a second vote, and critics, such as Scenic America, seek to challenge it, citing concerns about transparency and financial aspects. The original proposal for 93 billboards was scaled back during the approval process.

Federal Reserve Survey: Continued Tightening of Lending Standards Reflect Economic Caution

In a recent article by Billboardinsider, the October 2023 Federal Reserve Bank Survey of Bank Loan Officers indicates a continued trend of tightening lending standards in the commercial and industrial loan sectors. Key highlights from the survey include:

– Commercial and industrial loan standards have tightened for five consecutive quarters, along with a rise in loan pricing in the same sector. 35% of credit officers reported tightening standards over the past three months, while 63% mentioned maintaining the same standards, and only 2% indicated loosening standards.

– 50% of credit officers stated an increase in the premium charged on riskier loans or credit line.

– The primary reason cited for tightening standards by 87% of credit officers was a less favorable economic outlook.

The survey’s findings suggest a growing caution among lenders due to concerns about economic conditions. Billboard Insider’s analysis of the situation interprets bank loan officers’ expectations of a deteriorating economy. This sentiment aligns with actions taken by companies like OUTFRONT and Lamar, which have scaled back their capital expenditure and acquisition plans.


The advice from an economist at Billboard Insider’s bank underscores the need for proactive preparation for potential economic challenges. Their recommendation highlights the importance of readiness, emphasizing that those who prepare in advance will be better equipped to navigate economic downturns and identify emerging opportunities.

Clear Channel Outdoor Holdings, Inc. Restructures Global Operations to Enhance Shareholders Value

In recent news Clear Channel Outdoor Holdings, Inc. announced that they have sold Clear Channel France to Equinox Industries and are now looking to sell their Europe-North segment, which includes the UK and Northern Europe. They’re also conducting strategic review of their Latin American businesses in countries like Mexico, Brazil, Chile, and Peru. These moves are part of Clear Channel’s efforts to optimize its portfolio, strengthen its financial position, and enhance shareholder value.

Clear Channel has already sold its businesses in Switzerland, Italy, and France and plans to sell its Spanish business. The company is getting help from financial advisors, Moelis & Company LLC and Deutsche Bank Securities Inc., for these changes. However, there is no set timeline for completing these processes. According to Generally Accepted Accounting Principles, this transition will lead to separate presentation of assets and liabilities in the Company’s Consolidated Balance Sheets, impacting the reporting of results for discontinued operations in the Consolidated Statements of Loss.

Additionally, they’ve moved their Europe-South segment to discontinued operations. Clear Channel Outdoor Holdings, Inc. is a leader in the outdoor advertising industry, using digital billboards and data analytics to connect advertisers with consumers in 19 countries.

Despite these positive steps, there are risks involved in these changes, including delays and economic uncertainties. The company remains committed to enhancing shareholder value and optimizing its global presence.

Read full press release from Clear Channel Outdoor here: https://investor.clearchannel.com/news/news-details/2023/Clear-Channel-Outdoor-Holdings-Inc.-Completes-Sale-of-Clear-Channel-France-to-Equinox-Industries-Initiates-Process-to-Sell-its-Europe-North-Segment-Businesses-and-Strategic-Review-of-its-Latin-American-Businesses/default.aspx

Out-of-Home Advertising: Second Quarter 2023 Marks Historic Growth

 Out-of-Home Advertising: Second Quarter 2023 Marks Historic Growth

In the second quarter of 2023, the Out of Home (OOH) advertising industry had a 2.2% boost in revenue, reaching $2.68 billion, as reported by the Out of Home Advertising Association of America (OAAA). This is the second-highest quarterly revenue in OOH history. Digital OOH advertising, which makes up more than a third of the sales, grew by a significant 12.9% compared to the previous year. The Transit category saw the most substantial growth, increasing by 7.7% from the same period in 2022.

The OOH advertising industry is thriving, particularly in the “experience economy,” with travel experiencing significant growth. While other traditional media are declining, the OOH industry is expected to grow by 4.2% this year, according to MAGNA.

Notably, six of the top 10 OOH product categories performed better than the overall 2.2% quarterly growth. Legal Services (46.4%), Domestic Hotels & Resorts (29.0%), Colleges & Universities (20.2%), Local Government (14.7%), Hospitals, Clinics & Medical Centers (10.7%), and Consumer Banking (9.3%) all had substantial increases in OOH advertising.

The top 10 advertisers in the second quarter were Apple, McDonald’s, Coors, Verizon, Disney, Amazon, T-Mobile, Max, Coca-Cola, and Dunkin’.

Among the top 100 OOH advertisers, a significant majority (77%) increased their OOH spending compared to the second quarter of 2022. More than a third of these advertisers (37%) more than doubled their OOH spending. Thirteen advertisers increased their OOH spending by more than ten times.

Additionally, nearly a quarter (24%) of the top 100 OOH spenders were technology or direct-to-consumer brands, including Apple, Verizon, Amazon, T-Mobile, Max, Google, Uber, VRBO, Hotels.com, Nintendo, and Expedia, which ranked among the top 25 spenders. The OAAA’s revenue estimates cover various OOH advertising formats, including digital and static billboards, street furniture, transit, place-based, and cinema advertising.

OUTFRONT’S Strategic Roadmap: Navigating Challenges and Growth in 2023

OUTFRONT'S Strategic Roadmap: Navigating Challenges and Growth in 2023

In a recent article from Billboard Insider OUTFRONT’s CEO, Jeremy Male, outlined the company’s plan for the rest of the year at the Citi 2023 Global Tech Conference.

The key points of their strategy are:

Growing Transit Business: aims to revitalize its transit business, which has faced challenges. They plan to achieve this by connecting their digital transit assets to programmatic platforms. The company is focused on amending their transit agreements, especially with significant partners like the NYC Subway (MTA – Metropolitan Transportation Authority).

Cost Reduction: expenses are being closely monitored, particularly their SG&A (Sales, General, and Administrative) costs, with the goal of reducing these costs as a percentage of revenue in preparation for 2024.

Challenging Ad Market: The advertising market is not performing exceptionally well. Growth projections are modest, with some sectors, like TV and tech, experiencing declines, while others, like legal and health, are doing better.

Digital Conversion Targets: OUTFRONT insists on a minimum 20% Internal Rate of Return (IRR) for digital conversion projects.

Fewer Acquisitions: OUTFRONT has reduced its focus on acquisitions due to changing market conditions, as public multiples have decreased, and private expectations haven’t adjusted accordingly. They plan to concentrate on optimizing existing assets, but remain open to promising opportunities.

Debt Reduction: to decrease its Debt/Cashflow ratio to 4:1. Their leverage is between 5.0 and 5.5, and their primary objective is to bring it below 5:1 and eventually move towards 4:1.