Dallas’ proposed billboard program is unusual for several reasons.

The proposal to the city is coming from the City’s Parks, Trails and Environment Committee. In most markets, parks and environmental interests are more often associated with billboard opposition than billboard development.

It also reflects a broader macro trend: government agencies are looking for new sources of capital. Advertising rights on public property can create recurring revenue without relying on taxes or debt.

The biggest question is who originated the idea.

SignValue has not been able to identify a billboard operator or developer clearly behind the proposal from public information. An independent developer may be borrowing strategies used elsewhere.

Or the most interesting possibility is that the committee commissioned the research and opportunity themselves.

The presentation includes examples tied to New Tradition, Orange Barrel Media, and architecturally integrated signs from overseas (UK and Korea). The lease revenue-share assumptions (25%) appear generally reasonable, but the designs are over the top, and the revenue numbers look closer to LA or NYC. We are less convinced that some of the massive integrated structures shown in the presentation will work economically in Dallas.

It also does not feel like a typical Lamar, Clear Channel Outdoor, or Outfront proposal. The major operators are active in Dallas, including having active lobbyists involved in Dallas, mostly for zoning purposes or code changes per public files, but this concept is outside their usual development style.

Dallas is worth watching. As public agencies look for new funding sources, we expect more billboard proposals to come from places the industry would not traditionally expect.

Link to full presentation.

If you have questions, contact one of SignValue’s experienced analysts for a free and confidential consultation at info@signvalue.com or call 480-657-8400.

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