We see them while driving along interstates and major roads throughout the Triangle. They line the highways, from Interstate 40 and Interstate 440 to Capital Boulevard and U.S. Highway 1. In 2005, U.S. advertisers spent $6.3 billion on them — up from $2.6 billion in 1990 and $5.2 billion in 2000 — to promote their businesses.

While it seems like they’re everywhere, current regulatory issues could plague the future success of billboard advertising in the Triangle.

According to the Outdoor Advertising Association of America (OAAA) Inc., outdoor advertising is the second fastest-growing medium to the Internet. Yet in the Triangle, since 1983 government regulations have not permitted billboards to be replaced when damaged by natural occurrences, such as real-estate development, tornadoes or hurricanes. Regulations also state that billboards cannot be relocated when road projects threaten their location, or when billboard visibility cannot be controlled due to surrounding vegetation.

Fairway Outdoor Advertising, which operates five major divisions with 10 offices in six Southern states — including a regional office in Raleigh — is working to address the issue. With 43 employees and an annual payroll of $1.3 million, division officials are concerned with the industry’s future.

“Outdoor advertising is the most effective and advantageous form of advertising,” says Paul Hickman, general manager of the Raleigh division. “But unfortunately, it’s the only medium that is regulated by all four levels of government.”

To address the issue, Hickman recommends a three-pronged approach to help save the industry locally: Institute a cap-and-replace ordinance, offer vegetation management and create digital communication centers to strengthen the area’s focus on high technology.

Cap and replace

Building on the Triangle’s commercial and residential growth over the past decade, a cap-and-replace ordinance would keep the number of billboards the same but would allow area billboard companies to replace damaged billboards or those threatened by area development and relocate them to more appropriate areas.

“It’s not like we want to build new billboards near homes, schools or churches,” Hickman says. “We want them where business activity is occurring.”

Cap-and-replace ordinances are common throughout the U.S., according to Stephen Freitas, OAAA’s chief marketing officer. “What cap and replace means is that a municipality, city and county determine a cap on the number of billboards in an area,” he says. “In this case, an outdoor company can put up another billboard as long as one is taken down somewhere else — as long as the number of billboards remains the same.”

“It has worked well in other markets. At least we’d be able to protect our existing inventory,” says Mark Odell, vice president and general manager of Lamar Advertising Co., which operates billboards throughout the Triangle. “The Triangle is growing and catching the eye of local, regional and national advertisers, and right now there are many advertisers fighting over a limited number of billboards.”

Vegetation management

Fairway’s vegetation-management proposal would allow structures to remain visible and viable to clients who use them. Hickman says the company is willing to landscape the areas at the base of billboards and replace multi-poled billboards with mono-pole structures to promote clean lines and an aesthetically pleasing view.

“If you can’t relocate your billboard, your business will suffer, but if the government allows vegetation to grow in front of your sign, it’s still suffering,” he says.

“Removing vegetation that makes billboards unrentable sustains billboard inventory,” Hickman adds. “As a result, there is more space for public messaging, and more businesses are able to take advantage of outdoor advertising to promote area businesses. This creates economic growth and jobs in the Triangle.”

Digital communications

Hickman sees a great benefit to implementation of digital billboards, which he says would help area governments display announcements, from emergencies to public-service announcements and traffic and weather alerts.

“Our area is at the forefront of technology, so you would think the Triangle would want to be part of that,” he says.

Hickman envisions a private-public partnership in which Fairway would donate a communication spot per structure to area governments to increase public messaging. He notes that digital billboards, popular in other metropolitan areas, help increase the number of messages per structure, thereby allowing for more advertising and visibility. Under the plan, digital billboards would hold up to seven advertisements per board and would rotate every eight seconds.

Spreading the word

Fairway has 39 bulletin structures and 34 smaller poster structures in Raleigh, and 21 bulletin structures and 31 poster structures in the Durham market. If the company is not able to replace these structures if and when they become damaged beyond repair, Hickman estimates that the industry will experience steady declines — and eventual dissolution — over the next 20 to 30 years.

“The low number of billboards in the Triangle makes it difficult to meet the demands of national advertisers,” he says.

The company’s largest clients locally include Bailey’s Fine Jewelry, WakeMed Health & Hospitals, The News & Observer, Northgate Mall and the Carolina Hurricanes. According to Hickman, Fairway’s advertisers are aware of the regulatory issues facing the industry locally, and he has been talking with other cities that have implemented cap-and-replace ordinances for advice.

“Right now, before we attempt to change the ordinance, it’s much better for us to build a grassroots effort,” he says, adding that he’s hoping to move forward on an ordinance change this year.

“We all have to be smart and aware of what the business community needs,” Hickman adds. “It is clear that outdoor advertising is a medium that is growing rapidly and is very much wanted by a lot of advertisers.”

TOP 10 OUTDOOR ADVERTISING CATEGORIES NATIONWIDE

1. Local services and announcements
2. Media and advertising
3. Retail
4. Insurance and real estate
5. Public transportation, hotels and resorts
6. Financial
7. Restaurants
8. Communications
9. Automotive dealers and services
10. Automotive, auto access and equipment

TOP 10 OUTDOOR BRANDS

1. McDonald’s
2. Cingular Wireless
3. Verizon Long-Distance
4. General Motors Corp.
5. Anheuser-Busch
6. Nextel Wireless
7. Warner Brothers
8. Coca-Cola Co.
9. Verizon Wireless
10. Miller