- T. Scott Hofheins
I was reading a recent article about new outdoor LED digital signage in Times Square, and the approach many property owners have taken to generate advertising revenue...partner with the tenants. This is not a new approach, we see this in many non Las Vegas/Time Square multi-tenant and single tenant locations across the USA, but the approach is nonetheless solid and logical.
This approach gives you some good options. You have a built in customer base with a vested interest in onsite advertising. This is especially true with larger malls and shopping centers, where it’s worth the money to stand out from the crowd. You can share the upfront cost of the signage with your tenants, or put it up yourself and charge for time slots on the display, or a mixture of both.
These sites can also have some great advantages with regard to regulations and permits. Many sign codes allow for increased square footage specifically for these types of properties. This is typically put in place to allow for better visibility for all the tenants. Additionally, the length of the street frontage and property size can also provide advantages for increased height and size. This can be used to help get the most exposure from the LED sign.
While it is important to keep the traditional identity signage, using some of that space to increase the size of a high quality LED sign is really a win-win scenario for everyone long term. It brings more people to the site in general. Shoppers may initially stop in because of a certain advertisement on the sign, but as we all know, shopping is rarely a single event, but a chain reaction. Getting more people on the property is good for everyone.
This may also be one of the best ways to generate advertising revenue for the property owner. Multi-tenant properties have the unique benefit of being able to advertise more than one business on a sign, but it is still considered On-premise advertising. This means the property owner not only has access to lease revenue, but can also gain advertising revenue from the display. Good signage like this also helps retain existing tenants, as well as ensuring the site is attractive to new ones. It is a solid investment when operated correctly.
Keep in mind, this isn’t just for large sites, it is just as effective for smaller locations. Having 5-7 tenants just means they potentially have more time on the display. Again, keeping your site attractive for existing and new tenants. This also doesn’t just apply for traditional shopping centers or malls. Signage works great on vertical office spaces as well. I’ve personally seen this work well for building owners and their tenants.
This is not unlike operating a mini-billboard. Digital billboards aren’t just for the big boys anymore. It’s been exciting to see the success of many smaller private operators in both traditional digital billboards, and on-premise multi-tenant sites. It’s no secret that there is a lot of money to be made in advertising. It’s a huge industry for a reason, and LED signs are a part of it. If you’re a property owner who hasn’t taken the plunge, take a look and you may find a new source of revenue, and a powerful advertising asset for your tenants.
I hope this post has been informative and helpful. As usual, I welcome ALL constructive comments. Please feel free to comment and add anything I’ve missed, or additional tips you may have regarding this topic. Please visit www.vantageled.com for many other resources, white papers, and of course: Great looking LED Signs!
**All posts/thoughts/writings are strictly the viewpoint of me and me alone and do not reflect nor speak for Vantage LED’s beliefs, attitudes, thoughts, etc. unless specifically stated.