The Santa Monica City Council approved the Digital Display District on December 16, 2025. The district covers Third Street Promenade and Santa Monica Place and allows up to 16 digital displays, each generally limited to 1,000 square feet. Here’s an analysis of the program, sponsored and analyzed by SignValue
Seven displays received development-agreement approval when the district was created, and another 1,000-square-foot display is now proposed for the landmark building at 1355 Third Street Promenade.
The city is not giving away the advertising rights cheaply. For a full-size display, property owners must generally provide:
- A $500,000 upfront community-benefit payment
- The greater of 20% of gross advertising revenue or a $500,000 annual guarantee
- At least 20% of screen time for public art, civic announcements and city content
The most interesting provision is that the signs must also meet building-occupancy requirements. This is intended to ensure that landlords continue leasing and activating their storefronts instead of relying solely on advertising income.
The program is part of a larger effort to bring visitors, tenants and activity back to Third Street Promenade following years of retail vacancies and changing shopping patterns.
Santa Monica’s approach could become a model for other struggling downtown retail districts. Rather than approving traditional freestanding billboards, the city is creating a limited number of valuable digital rights tied directly to commercial buildings.
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.
To receive a free morning newsletter with each day’s Billboard insider articles email info@billboardinsider.com with the word “Subscribe” in the title. Our newsletter is free and we don’t sell our subscriber list.
Paid Advertisement
