In our company of the day feature today Brad Sourbeer of Parker Outdoor talks about his push for long-term ad contracts.  Many presenters at the fall 2022 IBO show talked about long term ad contracts:

Huntington Outdoor CEO Justin Powell says long term contracts are recession prep.

The best time to prepare for a recession is before one happen…We are doing everything we can to get multiyear contract.  3 year contracts with automatic rate increases.

Trailhead Media CEO Randy Otto says now is the time.

Now is the time to get long term contracts.  Give up yield for a long contract.  A 60-90 day contract may be subject to cancellation.

YESCO Outdoor CEO Pat O’Donnell says long term contracts need inflators.

We’d never write one without an escalation clause.

Billboard Insider’s Take:  You need to be careful about locking in a multiyear contract without an adequate contract escalation.  If inflation remains high or demand for out of home continues to accelerate a multiyear contract without adequate inflators will be a loser.  Clients who experience financial distress in a recession will balk at paying regardless of how long a contract is.

What are your thoughts on short term versus long term ad contracts.  Email davewestburg@billboardinsider.com or use the comment form below.  We’ll run a followup post.

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