The Daily Breeze reports that Hawthorne, California is installing a 10.6 by 36 digital billboards at Crenshaw and El Segundo boulevard. Becker Boards has a proposal to manage the billboard in exchange for a $125,000 signing bonus to the town and a lease equal to 55% of revenue.
Becker is forbidden to sell the following kinds of ads:
- charitable, political, religious or violent messages
- adult business or content
Insider’s take: Digital billboards can be a huge source of income for cash strapped towns. An existing Becker Boards managed digital billboard has generated $230,000 in cash for Hawthorne during its first year of operation. The town’s ban on charitable messages is counterproductive because it prohibits the town from running public service ads. 55% of gross revenue is an expensive lease. 55% of net revenue (revenue less commissions, electricity and sign operating costs including depreciation reserve) works out to about 20-30% of gross revenue which isn’t so bad.