This chart says it all. Inflation (e.g. the 12 month change in the CPI) has increased from an annual rate of 1-2% up to 5-6%. Too early to tell whether this is a short term post covid supply shortage phenomenon or long term inflation induced by an increase in the […]
Is inflation picking up? Steel Prices are up 75% over the past 12 months. Here’s some narrative from a steel market newsletter:”…due to a variety of factors, the North American steel mills are operating the available assets at a lower rate than previous years. If that is coupled with a […]
You need to keep your billboard lease increases to less than 2%/year. Here’s an actual lease Insider has reviewed. Payments are as follows: 2014-2017 $2,000 per year. 2017-2020 $2,500 per year. 2020-2023 $3,000 per year. 2023-2026 $3,500 per year. 2026-2029 $4,000 per year. A $500 […]
Insider has updated the inflation and US out of home revenues table. Bookmark this when it’s time to negotiate a billboard lease cost of living increase with your landlord. Inflation has averaged 2.2% over the past twenty years. US Out of home revenue growth has averaged 3.1% over the past […]
Avoid lease inflators in excess of 1-2%/year or your cashflow margin will erode. That’s the lesson of the chart below which compares US annual inflation with US out of home advertising growth since 2000. Inflation and out of home revenues increased 1.6%/year and 1.2%/year, respectively since 2008. Inflation and out […]
You need to keep track of historic inflation and expected inflation so you don’t agree to billboard lease inflators in excess of inflation. Same thing applies to the renewal of ad contracts. You need to get at least some increase in price on every ad renewal or inflation will be […]
This week’s announcement of 4.7% growth in US out of home revenues during 2Q 2018 was good news. It was the highest quarterly US out of home growth in two years and represented the 33rd consecutive quarter of US out of home revenue growth. US out of home revenues, however, […]
