Kevin Gephart on Selling Short-Term vs Long-Term Contracts

 

A big “thank you” to the billboard operators who responded to the recent Short-Term vs. Long-Term Contracts survey.

One surprising result: more than 85% said they will accept contracts of six months or less.

There are very limited times when a short-term contract makes sense. But before agreeing to one, ask yourself an important question: Am I creating a customer relationship, or just creating another sales call a few months from now?

The discussion changes dramatically when you stop selling contract length and start solving business problems. When you uncover an advertiser’s real objectives and present a thoughtful solution, the conversation naturally shifts from, “How short can we make this?” to, “How do we build a program that helps us reach our goals?”

Many larger OOH companies have learned that repeatedly selling short-term contracts consumes valuable sales time.

Whenever possible, sell advertisers a one-year agreement with a 60-day cancellation option after the first six months. The advertiser gets the security of knowing they have an exit if the campaign isn’t meeting expectations, while you gain the opportunity to prove the value of billboard advertising. In many cases, advertisers never exercise the cancellation option because the campaign is working and they’ve become comfortable with the medium.

Longer-term agreements create something every sales manager wants—a stronger revenue foundation.  It begins to eliminate the need to sell in the period for the period. A growing base of annual business makes monthly and quarterly goals far more predictable and frees up salespeople to spend more time prospecting instead of constantly replacing expiring contracts.

Election season provides a timely example. Political advertising can generate meaningful short-term revenue. But don’t let political dollars distract you from building long-term relationships with permanent local advertisers. Once the election is over, political campaigns disappear. Your local businesses don’t.

NOTE: One of the best opportunities during election season is pursuing advertisers who have been preempted by radio and television stations as political demand fills available inventory. Many local advertisers suddenly find their carefully planned campaigns disrupted and the ads bumped. They need another way to stay visible.

That’s where billboards become the solution.

By helping an advertiser maintain their marketing presence when other media can’t, you become more than a vendor—you become a trusted resource. While these situations often begin as short-term contracts (one of the very few I recommend), they frequently open the door to a much longer relationship once you’ve demonstrated your value.

If your second-half 2026 sales pacing isn’t where you want it to be, let’s talk. I may be able to help.

Learn more at OOHSalesFaster.com

Kevin Gephart
KevinJGephart@gmail.com
612-387-5349

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