44% of Billboard Insider readers think that the biggest strength of the out of home business is that there are barriers to entry in the business which limit competition.
The biggest barrier to entry is permitting. Many US cities or counties have sign codes which prohibit new billboards. Every large city or county restricts the location or size of billboards. Some typical sign code restrictions.
- A 500′-2000′ spacing requirement which means a new billboard can’t be within 500′-2000′ of an existing billboard.
- A buffer zone prohibiting billboards around parks, schools and sometimes bus stops.
- A prohibition of billboards in areas zoned residential or commercial.
- A prohibition of signs on designated streets or corridors.
- A restriction on electric signs (which prohibits digital billboards).
Think it’s easy to get new permits? Look at this partial list of towns and municipalities which prohibit new statics billboards or new digital billboards…
| City | State | Status | New static billboards? | Digital billboards? | Enacted |
| Anchorage | AK | Statewide ban | No | No | 1949 |
| Atlanta | GA | Restrictive; council exceptions | Not confirmed | Via council-approved deals | Unknown |
| Austin | TX | Ban on new; digital banned | No | No | |
| Baltimore | MD | Ban on new (with exceptions) | No, except code exceptions | Conditional use; must remove 3 existing faces | Code in effect by ~2019 |
| Chandler | AZ | Ban (reported) | No (reported) | No (reported) | Unknown |
| Denver | CO | Cap / relocate | Only by relocation under cap | Not verified | 1988 |
| Durham | NC | Ban on new | No | Prohibited in city limits | 1984 |
| Gilbert | AZ | Ban (reported) | No (reported) | No (reported) | Unknown |
| Honolulu | HI | Statewide ban | No | No | 1927 |
| Houston | TX | Ban on new | No | NA | 1980 |
| Irving | TX | Ban on new | No | NA | |
| Jacksonville | FL | Ban / removal | No | NA | 1987 |
| Kansas City | MO | Ban on new | No | NA | |
| Los Angeles | CA | Ban on new (sign districts) | Only in sign districts | Only in sign districts | 2002 |
| Minneapolis | MN | Pause on new and digital | Paused | Conversions paused | 2025 |
| Oakland | CA | Ban on new; relocation agreements | No (relocation/renovation only) | Yes, via relocation agreements | 1997 |
| Portland | OR | Statewide cap-and-replace | Only by removing existing | Tri-vision requires removing 3 static | |
| Raleigh | NC | Restrictive; no digital | Not confirmed as full ban (limited districts) | Not allowed | Late 1980s |
| Reno | NV | Full ban (attrition) | No | No | 2000 |
| Riverside | CA | Ban on new; relocation path | Only via relocation agreement | Now negotiable | 2026 update |
| Sacramento | CA | Ban on new; relocation agreements | Only via relocation agreement | Yes on city-owned/leased freeway property via agreement | 2007 |
| San Diego | CA | Ban on new | No | Proposed revenue program | 1981 |
| San Francisco | CA | Ban on new | No | No new | 2002 |
| San Jose | CA | Ban on private property; city-property exceptions | No on private property | Yes on city-owned sites | ~1985; 2018 exceptions |
| Scottsdale | AZ | Full ban | No | No | 1969-70 |
| Seattle | WA | Ban on new / attrition | No (per SPUR 2002 & council statements) | Prohibited | 1970s |
| St. Paul | MN | Ban on new | No | Not verified | |
| Tucson | AZ | Restrictive; digital banned | Heavily restricted (full ban not confirmed) | Banned by ordinance and legal settlements | 1985; 2005 |
| Washington | DC | Ban on new | No | No new billboards (DOOH allowed in designated entertainment areas) | 1931 |
An additional barrier to entry is the difficulty in signing a lease. Most of the best billboard locations are already taken. Most billboard leases prohibit a landlord from putting any other signs on a location.
Hal Stevenson of Grace Outdoor says you need perseverance to thrive in the out of home business. Billboard Insider knows a billboard exec who years ago went to the department of transportation in his state to ask for the sign code. “We don’t allow billboards” was the reply. The billboard exec didn’t bat an eye: “That’s not what I asked. I asked for your sign code.” Years have gone by and that billboard exec has a thriving out of home company in a state where he was told “we don’t allow billboards.”
It’s tough to get new billboard permits. But that applies to everyone else besides you. If you succeed in putting up a billboard you won’t have to worry about an explosion of competitors who enter the community and undercut your rates.
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