Why You Should Buy Your Billboards From an Outdoor Agency and Bypass Buying Directly From Vendors
Your company has a great idea for a billboard, and a friend of a friend knows a vendor who can get you a board for a low price. Sounds like a no-lose proposition, right?
Wrong. You may win a price break when you buy directly from one of the Big Three (Lamar, Outfront and Clear Channel), but you lose so much more. By using an agency, you receive access to the entire market, a singular focus on your return on investment (ROI), and a strategic approach to your campaign.
“You will never regret using an agency to find your billboard,” a client in the music industry told us after a recent campaign. “I didn’t realize it until I worked with you, but billboards are more of an art than a science. The campaigns we have run with your agency all outperformed the ones we did on our own buying from the vendor.”
Vendors sell space, but agencies sell audience, which builds results. Agencies’ local knowledge and unbiased opinions ensure your billboard will be more effective and efficient.
“I have bought directly from a vendor, and I have used an outdoor agency,” a beauty industry advertiser said after we wrapped up their latest campaign. “The price difference was negligible. But the difference in results was night and day. You took the time to develop a strategy that focused on our desired outcomes. The vendor seemed more interested in offloading empty boards.”
On every metric, agencies hold the clear advantage.
| Category | Direct From Vendor | Through an Agency |
|---|---|---|
| Inventory Access | ✕Limited to their boards | ✓Full market access |
| Whose Side | ✕Loyal to occupancy rates | ✓Works for you |
| Local Knowledge | ✕Glossy spec sheets | ✓On-the-ground insights |
| Negotiating Power | ✕Single-buyer rate card | ✓Bulk market leverage |
| Added Value | ✕Rate card only | ✓Over-posting, bonus flips |
| Risk Management | ✕Nominal discount, no fix | ✓Forced makegoods |
| What’s Sold | ✕Space | ✓Audience and strategy |
Industry Fragmentation: Agencies Are Even More Essential
Historically, a few massive media owners dominated the billboard landscape. Today, while the Big 3 still hold significant real estate, the market has fragmented.
Vendors: Independent operators such as Adams Outdoor, Reagan Outdoor and hundreds of hyper-local owners make up roughly a third of all inventory — more than any single Big 3 vendor. The rapid digitization of inventory and emergence of specialized ad-tech networks have also sparked the fragmentation.
Agencies: Agencies act as master aggregators in this environment. They strip away the complexity, ensuring advertisers get the best rates, unbiased placement strategy, and unified reporting without the operational headache.
Advantage: Agencies. Trying to buy a cohesive billboard campaign directly is like trying to book a multi-city international flight by calling every individual airline, regional connection and charter pilot directly. It takes forever, and it’s not cost-effective.
Case Study: Hungry for More Options
A fast food restaurant expands into a new market, where competitor digital boards owned by the Big 3 saturate the area. To secure placement, its agency bypasses the major networks and partners with a regional independent operator to secure premium, high-visibility “Opening Soon” billboard locations right next to the new construction sites, placements the national giants didn’t own.
Unbiased Opinions: Whose ROI Are You Paying For?
Vendors are motivated by their own self-interest with no promise you will work together again. Agencies establish a relationship with you to earn your business again in the future. They can afford to offer unbiased opinions. Vendors: Their loyalty is to their own occupancy rates. They need to fill their empty boards, and they do it at the expense of your needs. Their priorities come first. Agencies: Agencies have no inventory to protect. They pull data from large and small vendors to identify the best possible locations for your specific goals. It is no loss to them if you choose one board over another. Advantage: Agencies. They work for you, while vendors work for themselves.
Case Study: Vanishing Inventory
An insurance brand buys a premier billboard on a six-lane highway direct from a Big 3 vendor. Two weeks in, a Department of Transportation project closes the two right lanes of the highway and diverts traffic from the sign. The billboard’s traffic exposure drops by two-thirds. The vendor offers a nominal discount but refuses to refund or move the campaign because other clients already booked the premium boards.
An agency would have averted this crisis. Using independent mobile data, the agency would have flagged the traffic drop and leveraged its massive, multi-million-dollar spending power to force the vendor to provide an immediate, equivalent relocation.
Local Knowledge: Agencies’ Ace in the Hole
While data tools give advertisers a macro view of traffic numbers, agencies’ on-the-ground local knowledge provides the micro insights that can make or break a campaign.
Vendors: A vendor’s spec sheet will show a beautiful, unobstructed photo of a billboard taken from a perfect angle in the winter. It looks great, but it doesn’t tell the whole story, such as spots covered by summer foliage, blocked by newly built mid-rises, and angles obscured by highway overpasses until you are practically underneath them.
Agencies: Agencies know all of that and tell advertisers. They know a specific stretch of highway turns into a standstill bottleneck every evening. They know drivers on the right side of the highway get trapped looking at the roadside, while drivers on the left move too fast to notice a sign. They know which neighborhoods are bilingual and require boards in Spanish instead of English.
Advantage: Agencies. A Big 3 rep won’t tell you about the family-owned independent vendor who owns the single best wallscape in the downtown entertainment district. But agencies maintain relationships with these boutique operators.
Case Study: Know Your Surroundings
A tech company wants to place an ad in a historic, arts-focused neighborhood. An agency recognizes the problem with that approach — the residents are known to push back on billboards that don’t fit their aesthetic. The agency can redirect the tech company to a more welcoming location and avoid community backlash.
Market-Wide Negotiating Leverage: An Agency Superpower
Agencies manage a high volume of spending across dozens of clients, giving them bulk negotiating power that most single businesses lack. The Big 3 want to keep agencies happy so they will continue to spend millions of dollars with them.
Vendors: Their only concern when dealing with a single business is getting the deal done. The business has no leverage to ensure the deal is fair because the vendor is not counting on them for future business. Additionally, agencies often receive a 15% commission from vendors. When you buy direct, the vendor rarely passes that 15% savings to you. They simply keep it as extra profit.
Agencies: You get added value from agencies because they can demand it. Agencies specialize in negotiating over-posting (leaving your ad up past the flight date for free) and bonus digital flips. You may pay a little more, but you get a lot more.
Advantage: Agencies. Their buying power can turn a simple transaction into a high-ROI strategic campaign.
Case Study: The Negotiating Edge
A regional retailer approaches a “Big 3” vendor for a direct billboard buy and is quoted standard rate card pricing. The vendor positions the direct deal as the most cost-effective route. However, without market-wide leverage, the retailer is essentially paying a retail premium.
Inventory: Shop the Market, Not the Warehouse
Inventory plays a critical role in any campaign. Billboards share a lot in common with real estate, in that location, location, location remains the name of the game.
Vendors: Vendors control inventory. But their stock is limited to what they own. When you go directly to a vendor, they can only show you their boards, even if a competitor has a better location two blocks away.
Agencies: Agencies don’t work under those constraints. You have an unlimited selection. Agencies find the right location and then enter negotiations. Agencies also vet the location of your board. A vendor could sell you a great high-traffic spot without mentioning what is nearby, but agencies check out other boards or structures near yours and raise the red flags.
Advantage: Agencies. They offer a smorgasbord of options while vendors provide only a few.
Case Study: The Empty Board Trick
A vendor’s board has been vacant for three months. To get it off their books, the sales rep offers it at a special discount because the advertiser is a new client. In reality, the board is empty because a new construction project blocks the line of sight from the highway.
An agency could have avoided this pickle by using independent visibility scores. It would see that the board has a dead zone and steer the advertiser toward a better-angled board in the same area that’s owned by a competitor, a better solution even if it costs a few dollars more.
The Bottom Line: The Big 3 Sell Signs. Agencies Sell Strategy.
Skip the gatekeepers and hire the experts. Agencies have an unquestionable advantage over vendors when it comes to meeting all your needs. Contact us today to get started.
Gino Sesto is the Founder of DASH TWO, a Digital and Outdoor Advertising Agency based out of Culver City, CA. He has extensive experience and knowledge within the advertising industry, covering all formats from traditional media to digital media. Gino has over 25 years of experience and has helped with the release of several #1 records, including Bone Thugs N Harmony, The Offspring, Eminem, Jay-Z and more. Over the last 3 years, Gino has grown DASH TWO from 5 employees to over 20 employees and has expanded the company by opening a satellite office in Nashville, TN. Outside of DASH TWO, Gino is also a avid Certified Flight Instructor and is an active member of AOPA and The Entrepreneur Organization.