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.
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