You need to keep track of inflation when you are negotiate ad contract renewals and out of home leases. Inflation is averaging 3.25% per year for the first 6 months of 2024.  If you are not getting annual ad contract rate increases of at least 3% your margins will start to decline.

A 3%/year increase in inflation also means you should be reluctant to accept a billboard lease increase of more than 1-2%/year.  Billboard Insider has seen a lot of billboards which were written with 5%/year rate increases in the high inflation periods which became uneconomical when inflation moderated but the lease rate kept growing.

Here are the inflation figures since 2000

Looking for information on inflation.  US Inflation Calculator is a good place to start.

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