• by Erik Sass  @eriksass1, June 26, 2007

Lamar Advertising is set to aggressively expand its outdoor digital advertising platforms and will have over 600 displays in operation by year's end, according to the AP.

Outdoor division president Sean Reilly announced these plans at the Wachovia Securities 2007 Nantucket Equity Conference. That's about 150 or 33% more billboards than are currently in operation. Reilly added that whereas digital revenues represented 2% of the company's revenues in 2006, by May of this year, they represented about 5% of the total so far.

The news signals Lamar's intention to continue battling Clear Channel Outdoor for market share in the digital out-of-home category.

Clear Channel also operates hundreds of digital displays, including large billboard-style signs in markets with heavy automotive commuting, including Akron, Albuquerque, Cleveland, Columbus, Las Vegas, Los Angeles, Memphis, Milwaukee, Minneapolis-St. Paul, Tampa Bay and Wichita.

Digital signage is a burgeoning medium that's a key driver of growth for the out-of-home ad business, which saw overall revenues increase 8% in the first quarter of 2007, compared to the same period in 2006. Digital signage allows owners like Lamar and Clear Channel to sell multiple ad displays on a single billboard, as well as ad space on a daypart basis, with premium rates for heavy commute periods and lower rates for off-peak periods.