Inflation matters for an out of home company. It tells you how fast you need to grow revenues to avoid going backwards and landlords incorporate inflation into their out of home rent expectations. In January Billboard Insider reported that inflation was 3.4% for 2023. The good news is that inflation […]
An out of home exec needs to keep track of inflation for three reasons. Inflation tells you how fast to increase ad rates to avoid having your margins squeezed. Inflation is currently 3.4%. If you are not increasing your ad rates 3.4%/year your expenses will increase faster than your revenues […]
Magna projects US out of home growth of of 6.3% in 2023 due to digital and programmatic innovations and the resilience of local advertising. The growth forecast has been reduced slightly due to recession concerns. Cinema advertising will make a strong recovery off a small base as post-covid audiences return […]
Hoya Capital published a decent out of home review titled Billboard Reits: We’re Paying Attention (Lamar Vs Outfront). Forward a copy to your banker. The article explains how out of home works and summarizes industry strengths (e.g. regulatory barriers to entry, digital billboard upside, attractive CPM versus other media, low […]
You need to keep track of inflation when you reset ad rates or negotiate lease rates. The market is projecting 2.69%/year annual inflation over the next five years. How does Billboard Insider know? He looked at the difference between the 5 year treasury rate and the five year treasury inflation […]
If you are resetting your annual out of home ad contracts or negotiating with a landlord over a rent inflator you need to keep track of inflation. Billboard Insider looked up the US inflation data for the past 20 years: Inflation is at an annualized rate of 8.5% for the […]
Inflation has increased from 1.5-2% annually to 7-8% annually. Take a look at this chart. Source: US Inflation Calculator When you drill down into the numbers you can see that inflation picked up in the last half of 2021 when the last round of covid stimulus vastly expanded the money […]
If I told you that the economy grew at a 6.9% annual rate in 4th quarter, that we just ended the strongest year of growth in nearly four decades and that the national unemployment rate was at 3.9%, you might be feeling that our future is very bright. You would […]
Chart Source: US Inflation Calculator The US inflation rate accelerated to 7% for December 2021. That’s the highest inflation has been in 40 years. Cost pressures are impacting out of home. Vinyl input costs are up more than 30% from pre pandemic levels. Shipping costs are up nearly […]
A November 2021 New York Times headline says it all: The Bond Market Says Inflation Will Last. You Should Be Listening. The article appeared shortly after the bond market’s 5 year inflation expectation rose to 3%. The consumer price index (“CPI”) rose to a 30 year high in October 2021. […]
