Some great comments on yesterday’s Short versus Multi-Year Ad Contracts post.

Meadow Outdoor’s Mike Zukin says multi-year ad contracts are a hedge.

Long Term contracts are a great strategic hedge against a slow economy. We used them prior to 2008, but then increased their use after the meltdown. We sell a good percentage of long-term contracts in good times and in bad so we are always prepared. They were key to our growth during 2020 and 2021.  Yes, you give up a bit of upside, but you get through the downside times without much worry. Pat O’Donnell is spot on. We have annual increases built in. Prior to this generational inflation spike, they were at 3-5%. We have a great industry. Stable and relevant. It’s great to be in the billboard business. Make it a great day.

Another reader says you need to treat landlords fairly in multiyear leases

Whether short or long, if yearly inflators have been around 2% the past 20 years or so and now suddenly 8%, smart land owners will want 8% inflator increases every single year regardless of whether a contract is short or long. I think a discussion of the new yearly 8% inflator rate increase is even more important. How are companies dealing with this new rate? Is it ethically and morally okay to attempt to keep at 2% yearly inflators with uneducated landowners or do we apply the new 8% yearly inflator rate and pass the additional cost on to the advertiser?

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