Hawthorne Erects Second Digital Billboard.

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
  • tobacco
  • alchohol
  • firearms
  • adult business or content
  • gambling

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.

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