Growth of Electronic Billboards Hampered By State Laws

The growth of electronic billboard advertising is said to be limited by many factors, not the least of which is legal issues. There is a long list of state laws, supported by the federal government, that prohibit a variety of electronic signs in several states, including anything with "red, flashing or moving lights."

The restrictions make advertisers’ lives more difficult because "some states are different from others," says Bill Hooper, executive vice president of Clear Channel Outdoor, meaning every campaign has to be carefully monitored to make sure it conforms to various state laws. "In Times Square, they can run live video. They can't do it on the highways."

For instance, Hooper says the state of Florida allows tri-vision signs - a popular electronic billboard display that rotates three different messages - that Clear Channel is using now. "What isn't allowed is moving video messages," he says, "but [regulations] allow us to change copy periodically, between four and eight seconds from one static message to another."

But things are changing for the better. The numerous laws published on the Federal Highway Administration (FHWA) website at first seem too prohibitive, but Ken Klein, vice president of government affairs at the Outdoor Advertising Association of America, isn't overly concerned. He says 36 states now allow moveable messages on billboards, including tri-vision signs.

"The legal and regulatory framework is catching up with the technology," he says, indicating that new laws are now permitting electronic billboards in states where they have been previously banned. After Oregon ruled in favor of changeable message signs last week, the FHWA said, "Tri-vision signs do not appear to compromise the safety of the motoring public."

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