Mr. Reilly: We are a domestic billboard company. We're very strong in the middle markets. We do have a presence in the top 35 markets in the US, but a smaller one. We are characterized as a fixed cost, high margin business that sells outdoor space to primarily local advertisers (85% of our business is local) at a low cost per thousand ' roughly 2-3 per thousand eyeballs.
TWST: Typically, how do companies purchase outdoor advertising?
Mr. Reilly: There are several distribution channels. If you're a local
customer and you have a fairly large ad budget, you can buy billboards
through a local ad agency, and they will design your artwork and craft
your message and actually pick the billboards for their customer in
order to target their customer's best potential customers. Or you can
buy direct. We have a sales force of 700 people, and in every market in
which we operate we'll do the artwork and the execution. We'll have the
customer pick the best locations. And if you're a large national
customer you can either use a large agency or there are intermediaries
in the business that are billboard specialists that help agencies
execute nationwide buys.
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