The Second Cornerstone of Mobile Digital Billboard Success: A Scalable and Profitable Model

Back in 2014, when I first entered the mobile digital billboard industry, there were fewer than two dozen LED trucks in operation across the entire United States. This meant that information on how to successfully run this type of business was scarce, and there were few models to follow.

Like many who get into this business, I dreamed of working with iconic national brands—Budweiser, Sprint, Pepsi—all of them had my attention. By late 2015, my focus shifted to the national stage, just as the 2016 election cycle was kicking off, with 18 Republican candidates throwing their hats in the ring.

Over the next seven years, we grew our fleet to six LED trucks, running campaigns for Fortune 500 brands and political candidates across the country, covering 30+ states per year. On top of that, we brokered millions of dollars in additional deals over that time period. Our model was the same as most operators in the business: what we call the Exclusive Model. In this model, a single client books the truck for a day, week, or month, and their ads are the only ones displayed. They have full control over the location and route. Operators using the exclusive model typically work regionally, traveling up to 500-800 miles for different campaigns.

For a new operator, this is often the easiest model to start with. Aside from the truck payment and insurance, most operational costs are variable—meaning they only come into play if the truck is running. However, the downside is that this model can become a trap, with significant challenges that make it tough to transition out once you're committed.

The other option is the Local Shared Model, which is similar to how traditional digital billboards operate. Instead of a single client controlling the truck, you establish a daily route, and multiple advertisers share the screen, rotating through as the truck drives around. We call this the Local Shared Route Model.

In my opinion, the local shared route model is the best long-term choice by far, but it’s also the most challenging to implement. It requires a longer runway to get off the ground compared to the exclusive model. With this approach, you have to determine how many clients to include in each rotation, how long each ad should display (dwell time), how to price each spot, how to design a route that appeals to a broad audience, and how to collect impression data to prove ROI to your clients—and that's just scratching the surface.

So, which model should you choose? It depends on several factors unique to your circumstances. This isn’t a one-size-fits-all decision. Your choice of operating model is the single most important decision you’ll make at the start, and getting this cornerstone wrong could have a six- or even seven-figure impact on your business.

If this has left you with more questions than answers, that’s a good sign—it means you’re open to exploring your options. That’s where I can help. If you want to dive deeper into the pros and cons of each model and figure out which one is right for you, I’d be happy to guide you through that process before you invest six figures into a truck. We'll jump on a video call fo 1 hour for a Industry Discovery Call where we can talk about your goals and market to help figure out which option is the best for you.

You can book this call online at www.jerryteeter.com/consulting or by clicking the banner below.

Next week we will get into the Third Cornerstone in Issue #5.