Lamar Outdoor Advertising's success soars

SYRACUSE-When it comes to advertising a product, Richard J. Ruch, vice president and general manager of Lamar Outdoor Advertising, says his company presents the most effective way to reach customers.

"With a billboard," he says, "it's 24/7. It's in your face all the time. It's easy-you don't

With an office on West Genesee Street in Syracuse, and a satellite location in Watertown, Lamar Outdoor Advertising billboards can be found in counties such as St. Lawrence, Jefferson, Onondaga, Cortland, Oneida, and Herkimer. The company manages 842 billboards throughout these counties.

Clients can choose either bulletin or poster billboards, or a mixture of both. The difference is in the material and the price. Poster billboards use paper copy, cost approximately $120, and need to be replaced every 30 days. Bulletins use vinyl copy, cost $1,200, and can last two months before fading.

Bulletins measure 11 feet by 40 feet and are found alongside interstates. "Where there is mass traveling, [bulletins have] a great effect," Ruch says. Posters are 12 feet by 25 feet and are found on "secondary arteries" such as Erie Boulevard and West Genesee Street. Ruch says that business is evenly divided between bulletins and posters. Ad copy is changed on 250 to 300 billboards each week.

Ruch says that he tries to sell clients on a particular area, rather than a specific billboard location. Lamar has a rotation program that moves an advertisement every two months. He adds that obtaining a new billboard location from the city is tough to do. The desired spot must be in a commercial or industrial zone, be a proven artery, and not be within 500 feet of a church or school.

Based in Baton Rouge, La., Lamar Outdoor Advertising (NASDAQ:LAMR) generates an annual revenue of $6 billion through its 160 plants. (These plants are found throughout the country, except in Alaska, Hawaii, Vermont, and Maine, which don't allow any outdoor advertising). In 1997, Lamar had 34 plants, and bought Penn Advertising, Inc.'s nine plants. One of those plants was in Syracuse. Ruch worked at the Syracuse Penn Advertising facility, and Lamar Outdoor Advertising kept him on as general manager. The Syracuse facility generates an annual revenue of $4 million.

Syracuse's market, or population, size is number 75 in the country, Ruch says. National agencies tend to buy in markets that are at least number 50 or higher; some only deal with the top 20 markets. Ruch says he's found a way to be successful despite that.

"Local sales combat that," he notes. "I don't want to rely on national clients. You might have some [national] clients that pull out on you at the last minute."

Ruch says Lamar Outdoor Advertising has hundred of clients throughout Central New York, including mom-and-pop floral shops, car dealerships, hospitals, and financial planners.

He adds that it was these local sales that helped the company weather the recent advertising recession. "One of the first things people cut in a recession is their advertising budget," Ruch says. "After a while, they see the need to advertise. It brings people in.

"Local sales is the bottom line," he continues.

Ruch says that the company has a 75-percent renewal rate. "Renewal is what's key," he notes.

Outdoor advertising is not a seasonal business. "You have to pick and choose your battles," Ruch says. "Some days, it's impossible to go up [on a billboard], like when it's 30 degrees below zero. We have a very rugged staff. They're very hardy and a good crew."

Ruch says that his business helps other companies overcome the first hurdle-attracting potential clients.

"A billboard is seven to 10 words yelling your message," he says. "Less is better. We get the people to call you, and once we've done that, it's up to you [to sell your product]."