Why Start a Mobile Billboard Advertising Business?
With the advent of technology and modernization, advertising is no longer limited to TV and radio advertising. New ideas and new ways of advertising are emerging every day. One mode of advertising that is raising so much dust is mobile billboard advertising. This form of advertising is becoming very popular because it reaches the public on the streets and provides local and national businesses advertising opportunity that isn’t dependent on any consumer activity.
This industry is growing and any willing individual can take the opportunity to earn from it. A lot of mid-sized cities in the U.S. are still finding their feet in this industry, and so most likely, you will be spared a wide competition in this business.
Starting this business doesn’t come easy, it takes a lot of factors and strategies to start making stable income in this industry. One factor you need to consider before starting a mobile billboard advertising business is capital. This business is capital intensive as you would need to buy a retrofitted truck or van to carry the billboard.
You would also have to consider what you’re spending on fuel costs. You also have to outfit your vehicle with a GPS tracking system, put up a website to advertise your service, and get a license. Your job in this business is to take an ad from new and existing companies and place it in a display in your mobile advertising vehicle, and drive the truck on busy areas during traffic hours for 8 to 14 hours a day.
It’s very important that you know the traffic patterns of your city to effectively do this. Note that you can charge for the services of your mobile billboard business per minimum number of hours, per week or month. The rates would depend on the route, the event and on the inclusion of specific services and feature such as GPS, driver, illumination, fuel, and the number of billboards.
A Sample Mobile Billboard Advertising Business Plan Template
- Industry Overview
The mobile billboard advertising industry is a part of the general outdoor advertising industry. Businesses in this industry create print and digital advertising materials and put them on outdoor displays such as billboards, transit vehicles, and street furniture.
According to statistics, total global revenue from outdoor advertising is about $50 billion. Strong growth is expected to come from markets where investment in infrastructure is rising, such as Turkey, China, and Brazil.
A report also has it that the US outdoor advertising industry is made up of about 2,500 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $8 billion. Industry products have increasingly been used by private businesses and advertisers over the five years to 2018.
Fortunately for the industry, solid growth in US advertising expenditure and private spending on non-residential construction has enabled strong overall revenue growth. This industry has maintained strong appeal over the past five years even with an increasingly fragmented media landscape.
Experts believe that the outdoor advertising industry operates with a low level of capital intensity. It is estimated that for every dollar spent on wages, the industry will allocate $0.07 to capital investment. Also note that the industry’s level of capital intensity has grown slightly over the five-year period, as the industry allocated $0.05 in capital expenditure per dollar in wages in 2012.
Capital investment for the industry is primarily in machinery used to manufacture signs. Despite being a highly automated manufacturing process, industry wage costs are higher than other manufacturing sectors. This is because businesses in the industry will often install and provide maintenance services for signs.
Have it in mind that demand for outdoor advertising is driven by spending on transit infrastructure, as well as business in sectors such as retail, media, health care, banking and financial services. A report has it that the profitability of individual companies in the industry rest on the ability to attract and retain creative employees and establish and maintain successful relationships with clients.
We believe that big companies in the industry have advantages in providing outdoor advertising in multiple geographic markets. While smaller companies can compete effectively by specializing in local markets or offering lower pricing.
Mobile Billboard Advertising Business Plan – Executive Summary
Fast Track is a mobile billboard advertising agency which will also offer taxi top advertisement to the people of Silicon Valley, California. The main reason of advertising is to spread the word about a product or service to a specific audience, and we at Fast Track believe we have what it takes to to offer these services to our clients.
Our plan at Fast Track is to target both corporate organizations and individuals. Our aim at Fast Track is become a major stakeholder in the advertisement industry in all America and provide our clients with quality services. This goal we believe is very achievable with the way we plan to do things.
We plan to make sure our staff go through standard trainings which will make them ready to deal with any challenges they encounter. Fast Track will be offering its clients the best possible approach in planning and implementing a successful outdoor advertisement.
We believe that our services will cut through the mumbo jumbo of mass marketing, increase sales, and enhance customer satisfaction. We plan to first and foremost understand the needs of each client and strive to get the right message across to the right people. We hope to exceed our customers’ expectations in the advertisement industry.
Fast Track owners Jonah Roberts and Clinton Mind have over twenty five years’ experience in the advertising and marketing industry between them. Jonah Roberts was the Chief Marketing manager of Agilent Technologies and was crucial in the innovative advantage they had over their competitors.
Clinton Mind is credited with building the first digital billboard in Silicon Valley and was technical lead of Yahoo before pitching tents with Jonah Roberts to start up Fast Track. Jonah Roberts and Clinton Mind have been friends from college who shared the same ideas and innovative sense.
- Our Products and Services
Fast Track specializes in mobile billboard advertising and will also offer taxi top advertisement. We have a concrete relationship with Peoples Cab, the second most popular taxi company in Silicon Valley. We will also design, build, test and deploy the mobile billboard and taxi top advertising campaigns.
We will also report the progress of the campaign in real-time to provide our customers maximum flexibility. We also plan to analyse the success of each campaign in order to improve the company’s future campaigns. The services we at Fast Track plan to offer include the following:
- Campaign Designing
- Industry research and market targeting
- Building campaign system
- Plan testing
- Campaign implementation
- Tracking the campaign’s progress in real-time
- Instant measurability for ROI analysis
- Post-campaign analysis
- Other related media and advertising advisory and consulting services
Our Vision Statement
Our company’s vision is to establish a business that will dominate the globally advertising market by attending to the needs of our clients and achieving successful landmarks.
- Our Mission Statement
Our mission at Fast Track is to offer our customers the best methods and tools in planning and implementing a successful mobile billboard and taxi top advertisement. We will offer professional and highly creative advertising services and other related advisory and consulting services. This we believe will aid businesses, individuals and non-profit organizations in establishing their brands and reaching out to a large range of potential customers.
- Our Business Structure
With Jonah Roberts and Clinton Mind as a perfect example, Fast Track will be built on trust and long lasting friendship. We have left no stone unturned in establishing a business that will provide excellent advertising services. We are committed to only hiring the best hands within our area of operation. We plan to hire individuals who are very focused and zealous, and we plan to start with the following business structure;
- Chief Executive Officer
- Creative Director
- Advertisement manager
- Human Resources and Admin Manager
- Sales and Marketing manager
- Client Service Executive
Roles and Responsibilities
Chief Executive Officer
- Tasked with building the firm’s effectiveness by recruiting, selecting, orienting, training, coaching, counselling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results and developing incentives
- Provides direction for the business
- Will also be tasked with creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Tasked with signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Works as the project manager of the organization; works directly with employees
- Tasked with designing advertising concepts and winning business proposals for the organization
- Tasked with copy writing and laying out chronological advertisement plans
- Tasked with accomplishing subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
- Maintains quality service by establishing and enforcing organizational standards.
- Tasked with making sure that the organization work in line with international best practices.
- Tasked with handling media planning, buying & representation
- Tasked with disseminating advertising campaigns through available mediums, such as TV, Radio and periodicals et al
- Tasked with handling core digital services such as taxi top advertisement, banner advertising, video advertising, rich media advertising, sponsorship advertising, lead generation, mobile messaging/email, digital display advertising, mobile advertising, social media management
Human Resources and Admin Manager
- Tasked with overseeing the smooth running of HR and administrative tasks for the organization
- Will have to define job positions for recruitment and managing interviewing process
- Tasked with carrying out induction for new team members
- Tasked with training, evaluation and assessment of employees
- Oversee the smooth running of the daily office.
Sales and Marketing Manager
- Obligated to model demographic information and analyse the volumes of transactional data generated by customer
- Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Tasked with handling business research, market surveys and feasibility studies for clients
- Tasked with supervising implementation, advocate for customer’s needs, and communicate with clients
- Develop, execute and evaluate new plans for increasing sales
- Create new markets cum businesses for the organization
- Empower and motivates the sales team to meet and surpass agreed targets
- Tasked with preparing financial reports, budgets, and financial statements for the organization
- Tasked with providing the Companies management with financial analysis, development budgets, and accounting reports
- Tasked with financial forecasting and risks analysis.
- Should be able to perform cash management, general ledger accounting, and financial reporting for one or more properties.
- Tasked with developing and managing financial systems and policies
- Tasked with administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for Fast Track
- Serves as internal auditor for Fast Track
Client Service Executive
- Tasked with welcoming clients and potential clients by greeting them in person, online or on the telephone; answering or directing inquiries.
- Makes sure that all contacts with clients (e-mail, walk-In centre, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the creative director in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information are supplied to clients when they make enquiries.
Mobile Billboard Advertising Business Plan – SWOT Analysis
The strength of every organization lies in its mode of planning and implementation. It takes careful deliberations and planning to build a business that will stand the test of time. We understand these at Fast Track and we plan not to leave any stone untouched.
A SWOT Analysis is a study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats. Fast Track hired the services of Merlin Associates, a HR firm owned by Prof Lambert Cyril, a well-known figure in business development and analysis. Here is a summary of the SWOT Analysis done for Fast Track by Merlin Associates;
Our major strength at Fast Track is our detailed business plan and advertising strategies. Fast Track business plan was put together after extensive research to suit the needs of our target market and to ensure we report the progress of each advertisement campaign in real-time to provide our customers maximum flexibility. This will ensure business transparency and grow the trust our customers have for Fast Track.
Our main weakness will be the time it will take us at Fast Track to achieve our goals and the problems we will be facing as a new entrant in the industry. We at Fast Track have taken these weaknesses into consideration and have put plans in place to perform above them.
Statistics has shown that the demand for mobile billboard and taxi top advertising is growing and has no plans of going down. The competition in the business community is growing every day and the need to attract new clients is becoming increasingly necessary. Businesses and individuals are striving to let their target audience know where they are and what they offer. This is what we plan to help them achieve at Fast Track.
According to our SWOT analysis, the competition we will be facing will be fierce. It also pointed out that the little or no government policies in this industry will give us that restlessness that things might change at any given time. The funds we need to build our business will another threat that will limit our success.
Note: All the facts noted from our SWOT Analysis conducted by Merlin Associates have been properly discussed and solutions brought forward. We at Fast Track believe in our uniqueness and how eager we are to become advertisement specialists, and we believe that our strengths and opportunities will help us achieve our business goals.
Mobile Billboard Advertising Business Plan – MARKET ANALYSIS
- Market Trend
According to reports, digital advertising is estimated to move from $135 billion in 2014 to $240 billion in 2019, a compound annual growth rate (CAGR) over the period of 12.1%. In Q3 2015, U.S. digital ad revenue reached $15 billion, which is a full 23% increase over Q3 2014.
It also noted that digital advertising will outshine television advertising for the first time, with $66B in revenue in the U.S. It is even more remarkable because it is an accelerating trend globally. Programmatic advertising — which uses software to tailor ads for individuals or demographic niches — is the buzzword of the moment.
Many advertisers and brands have heard about it and may even have purchased an ad or two, but it isn’t popularly used yet. That could all change later this year. Experts also believe that with increase in popularity comes increase in prices.
That’s not to say prices will skyrocket to a deal-breaking point, but the increased demand will drive up costs. This is because more and more people are coming to the programmatic ad table; they could seek ad opportunities that are out of the norm. That’s why private marketplaces would see more activity.
According to industry reports, private marketplaces are invite-only arenas where advertisers can select and buy ads from elite publishers. Also instead of creating a generic billboard ad with one colour, message and call to action, dynamic creative technology establishes several ads and tests them to see which resonates best. Just as data are collected, ads that perform well are used over lower-performing ones.
Also note that programmatic advertising is a rapidly evolving area of marketing. A lot of companies in the United States will benefit from working with outside experts. This type of relationship can make sure that the organizations receive the best return on investment from their programmatic advertising – and otherwise.
- Our Target Market
Silicon Valley is known to have a social and business ethos that supports innovation and entrepreneurship. The San Francisco Bay Area has the largest concentration of high-tech companies in the United States, at 387,000 high-tech jobs, of which Silicon Valley accounts for 225,300 high-tech jobs. Silicon Valley has the highest concentration of high-tech workers of any metropolitan area, with 285.9 out of every 1,000 private-sector workers.
Silicon Valley has the highest average high-tech salary in the United States at $144,800. This is due to the high technology sector, the San Jose-Sunnyvale-Santa Clara, CA Metropolitan Statistical Area has the most millionaires and the most billionaires in the United States per capita.
We at Fast Track believe that there are many businesses in Silicon Valley who can’t function without the aid of an advertising firm. Advertising is a major part of every business; you need to make people or your targeted audience know what you offer and where you offer them.
We at Fast Track with our extensive research have been able to state who our prospective clients will be and the best way to reach them. We have put everything into consideration and made strategies to get to them easily. Outlined below is a list of the people and organizations that we hope to help promote their business;
- Banks, Insurance Companies and other related Financial Institutions
- Corporate Organizations and technology companies
- Manufacturers and Distributors
- Real Estate Owners, Developers, and Contractors
- Research and Development Companies
- Educational institutions (High Schools, Colleges and Universities)
- Governments and hotels
- Celebrities, Politicians, Public Figures and Public Speakers
- Sport Organizations and social clubs
- Media Stations and Religious Organizations
- Event planners and other businesses
Our Competitive Advantage
Jonah Roberts is a graduate of Yale University with a BA in marketing. He worked with several advertising firms before joining Agilent Technologies in 2005. He worked and rose to the position of a Chief Marketing manager before resigning to start up Fast Track. Clinton Mind graduated with a BS in computer science from Yale University too. He immediately went to work for Groom technologies. He left in 2002 to join the Dell as the technical lead of its email campaign.
In 2007, he joined Yahoo and super-headed their modern marketing approach. These two men have remained friends from the University and have the needed experience to build the dreams and visions of Fast Track. They have the needed connections and expertise which will serve as a competitive advantage for Fast Track.
Also the plans we have and the means we hope to achieve will be exemplary and innovative. We believe that just like Jonah Roberts and Clinton Mind did in Agilent Technologies and Yahoo respectively, they will bring together a team of experts whose goals suit the vision of the firm.
- Sales and Marketing strategy
Fast Track being an advertising agency, we understand how important our sales and marketing strategies would be to the success of our business. That is why we trained all our employees to serve as both sales and marketing officials to our clients and also to our business.
We understand the needs of the industry and we have devised means to fill them. We will be spending hugely in our advertising strategies and team. We plan to use the following strategies to reach our targeted audience;
- Fast Track will introduce our advertising agency by sending introductory letters alongside our brochure to individuals, corporate organizations, government agencies, non – profits, religious organizations and key stake holders.
- We also plan to create different packages for different category of clients in order to work with their budgets and still deliver excellent services
- We will make use of the internet to promote our business
- Engage direct marketing approach
- We will make use of referrals
- Promptness in bidding for advertising and digital marketing contracts from the government and other cooperate organizations
- We will also advertise our business in relevant business magazines, newspapers, TV and radio stations
- We plan to list our business on yellow pages ads (local directories)
- Attend relevant international and local expos, seminars, and business fairs et al
Mobile Billboard Advertising Business Plan – Publicity and Advertising Strategy
We at Fast Track believe we can grow our brand awareness by effectively implementing the right strategies. As an advertising firm with all our employees well experienced in the advertising market, we know exactly what we need to do to attract clients and boost our brand awareness. With over three million potential customers, we plan to focus our advertising on a select group of 55,000 businesses each fiscal quarter.
From concrete analysis, we estimate a five percent response rate to the campaign which will generate 1,250 leads. These leads will then be used to generate business contacts. Over the year, we will generate 5,000 leads. Listed out below are the strategies we hope to leverage on to promote and advertise Fast Track;
- We will place adverts on both print (newspapers and magazines) and electronic media platforms
- We will also sponsor relevant community based events
- We will also make use of the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our services
- We also plan to mount our billboards in strategic locations
- Engage in roadshows from time to time in targeted neighbourhoods
- We will also distribute our fliers and handbills in target areas
- We also plan to contact corporate organizations, non – profits and government agencies by calling them up and informing them of Fast Track
- We will also list Fast Track in local directories / yellow pages
- We also plan to create an official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo
Sources of Income
One of our objectives is to become a key figure in the advertising market. We have put plans in place to achieve this within 3-5 years. We plan to generate income by offering the following advertising cum digital marketing services;
- Campaign Designing
- Industry research and market targeting
- Building campaign system
- Plan testing
- Campaign implementation
- Tracking the campaign’s progress in real-time
- Instant measurability for ROI analysis
- Post-campaign analysis
- Other related media and advertising advisory and consulting services
We at Fast Track have chosen a suitable location we believe is good and lucrative for our business. Detailed plans have been laid down for the actualization of our goals, which is why we have also gone through extensive means to produce a sales forecast.
We at Fast Track know that we are well positioned to take on the available market in advertising agencies industry and we are quite optimistic that we will meet our set target of generating enough profits from our first one year of operation. Our sales forecast was done after extensive research, discussion, and analysis of what is obtainable in the industry. Outlined below is the sales projection for Fast Track;
- First Fiscal Year: $900,000
- Second Fiscal Year: $1,500,000
- Third Fiscal Year: $7,050,000
Note: This sales forecast for Fast Track was actualized based on what is obtainable in the Advertising industry and with the belief that we will be using any threat or weakness as a stepping stone. This projection can go higher or lower with time.
- Our Pricing Strategy
From our detailed research and analysis, we understand the various challenges we will be facing as new entrants in the industry. We plan to keep the prices of our services below the average market rate by keeping our overhead low and by collecting payment upfront from organizations that would hire our services.
We will also offer special discounted rates to all our customers at regular intervals. We believe that our initial pricing will attract customers and clients to us, and we hope to use that in boosting our brand awareness.
- Payment Options
Creating varieties of payment methods is very crucial to the success of any business. We at Fast Track understand this and we are prepared to offer a wide range of payment methods to suit our clients. We hope to make our business dealings so simple and comfortable for our customers. We’ve also employed the use of a banking platform to help us provide all the services we will be offering below.
- Payment by via bank transfer
- Payment via online bank transfer
- Payment via check
- Payment via mobile money
- Payment with cash
Mobile Billboard Advertising Business Plan – Financial Projections and Costing
We at Fast Track have researched the industry thoroughly to be able to ascertain what we need to start up our business successfully. Our aim is to achieve our business goals while maintaining a stable financial record. We plan to start up by leasing four trucks and expand as we grow.
We believe that the equipment we need might be the same price all over the United States, and any difference will surely be little enough to be overlooked. Outlined below is a detailed cost analysis of starting Fast Track;
- Incorporating fees in the United States of America will cost – $750.
- The budget for Liability insurance, permits and license will cost – $35,000
- Leasing / renting an office space in a good location in Silicon Valley that will accommodate the number of employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $150,000.
- The cost for furnishing and equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $30,000
- The amount required to purchase the needed software applications – $3,500
- Launching an official Website will cost – $500
- Our budget for advertising and publicity – $50,000
- Cost of leasing four trucks – $800,000
- The amount needed to pay bills and staff members for at least 2 to 3 months – $70,000
- Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000
- Miscellaneous – $5000
From the above cost analysis, we need about $1,400,000 to start Fast Track. The business we believe will grow to dominate the market and become the major stockholder in the global market.
Generating Start up Capital for Fast Track
Fast Track is a top class mobile billboard and taxi top advertising agency that will serve the people of Silicon Valley and the whole of California. This business is owned by Jonah Robert and Clinton Mind. We at Fast Track also understand the importance of funds and startup capital, which is why, after numerous discussions, have ascertained ways to raise funds, and they include;
- Generate part of the startup capital from personal savings and sale of stocks
- Generate part of the startup capital from friends and other extended family members
- Generate part of the start up capital from the bank
Note: Jonah Roberts and Clinton Mind will invest equally in the company. Fast Track will also secure a long-term business loan. The two founding partners have been able to raise $1,000,000 ($500,000 each), and are at the final stage of securing a loan from the bank.
Mobile Billboard Advertising Business Plan – Sustainability and Expansion Strategy
First and foremost, we at Fast Track believe that the services we provide will be second to none. A lot of individuals and businesses are lacking ideas on how to advertise their business. Fast Track is here to provide a new platform that will boost businesses easily and also reach a wide variety of audience. We at Fast Track believe we will reach a large range of potential customers by implementing our marketing plans long before we open up shop for business. Fast
Track is an advertising firm that helps other businesses boost their firms, and we believe that we should be able to do that for ourselves before planning to do it for others. We also plan to expand to other cities in the United States as times goes on. We believe that the only hindrance on expanding is for us to gain adequate brand recognition to be able to move and grow.
We have also established a concrete understanding with People’s Cab, the second largest taxi company in California, to help provide our clients with taxi top advertisement. We have also put plans in place to ensure that our staff are the best in the industry. We have contracted Safe Driving to help teach and verify all our drivers as experts.
We believe our founding partners will bring in their wealth of experience and help attract the best the industry has to offer to Fast Track. We at Fast Track plan to provide incentives that will be very attractive to our workforce and make them give their all to Fast Track. We believe in our vision and the zeal we have to provide a better platform for individuals and businesses.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Leasing, renovating and equipping our facility: Completed
- Generating part of the startup capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress