Disclaimer:

1. The advertisement shown is solely for reference purpose only. There are no contract bind between the shown company advertisement / products with the author of this post (edyek).

2. Any words, images and any other equivalent information used throughout the here are solely for reference only.

3. The billboard size and modification on billboard framework shown here are not subject to engineer approval.

4. The author (edyek) is not responsible for the information of this post, as each state & city/town is governed by different state rules, local council rules, etc.

5. The author (edyek) is not responsible for any undesirable outcome caused by this post.

For those who is interested to venture into media advertising (Billboard advertising), I've compiled the information regarding billboard business (From proposal stage to execution stage). This serves only as a guideline. (This is what I've done to get my billboard business from planning stage to execution stage and all the samples shown here were in my proposal).

1. Location
This apply to most business therefore it is not exclude in this business either. LOCATION. If you have found a suitable location to setup your billboard, be it an individual structure construct at ground or attaching to certain building/structure (such as pedestrian bridge etc.), do take pictures of the area and search for your proposed billboard locality using Google Earth.

Example:
(The photos shown here were edited with billboard structure to give impression on how the billboard will be.)
1. Building




2. Pedestrian Bridge




3. Individual Structure





2. Billboard Structure Details
First, you need to state how big is your billboard. 1,400ft x 20ft? 1,000ft x 15ft? What kind of materials are used? Steel?
Secondly, I hire my engineer friend to help me out. Remember that you need a licensed engineer to draw it, as you need him/her to chop & sign the drawings for approval purposes.

Dimension
Some Example:







3. Billboard Power & Other Utilities
Here, you have to decide whether your billboard is illuminated type or un-illuminated type. If you decide to install spotlight to your billboard structure so that your client can advertise their ads at night, then you need to see this part.
To have illuminated billboard, you need to ask your engineer to draw in the spotlight to the structure drawings. Electrical accessories & wiring are to be indicated in drawings and to where the electrical wiring will be connected.

1. Building
This is the most conveninent part, as long as the building owner provide electrical point for you, you can always connect it (provided you have sign an agreement with the building owner. Most owners require you to install meter box to monitor your electricity usage and what you use is what you pay.)

2. Pedestrian Bridge
This is the hardest part. You need approval from local state electrical company to connect the wiring. You may need to install a small suis box with DB Board. Approval from electrical company comes in later part after local council and JKR has no objection in issuing the billboard advertisement license.

West Malaysia = TNB
East Malaysia (Sarawak) = SESCO
East Malaysia (Sabah) = SESB

3. Individual Structure
Same goes with this. Refer to No.2.


4. Billboard Safety, Maintenance & Insurance
You need to know that the billboard structure needs monthly maintenance checking. From time to time, you need to check whether your spotlight/electrical wiring is fuctioning, is the steel structure rusting, and etc.
Therefore, you need to come out with a time table to indicate how frequent is your steel structure maintenance checking.
Last but not least, you need to purchase public liability insurance. You never know when your billboard is going to collapse or being vandalised, and worst of all damaging nearby properties or hurting nearby humans.


5. Attachment
1. If you are constructing billboard at people's building or land, surely you need an agreement with the building or land owner which gives you consent to do so. So please attached together the agreement in the proposal.
2. If your billboard falls on public places, such as (refer to Point 1, No.3 Individual Structure), then you need to get Local council or JKR consent to do so. That why you need to indicate on Google Earth where is your location.

Now with all the above Point 1, 2, 3,4 and 5, compile it into a proposal and ready for local council or JKR submission.





Submission
1. Local Council
After you have complete your proposal, you need to submit your proposal first to your local city/town council for meeting and approval. Each local council have their own rules for advertising in public, therefore you need to submit in the proposal first and wait for their comments. Some places that you have proposed might not be suitable for billboard structure erection, or you need to build higher structure, or you need to build smaller and etc. Some places that you proposed may not fall into their territory (yes, some place you proposed might fall in the road reserve which is the territory of JKR).
You need to get 2 things from Local council.
1) Advertising License
2) Approval letter to erect billboard structure (if the public place falls to local council territory)

2. JKR
After you have submit the proposal to local council and found out that some of your billboard falls on JKR territory, you need to submit the proposal to JKR again for comments and approval.
You need to get 1 thing from them.
1) Approval letter to erect billboard structure (if the public place falls to JKR territory)

3. Electrical Company (TNB, SESCO or SESB)
*Apply to billboard construct at public places and illuminating billboard
After the approval from both 1 and 2, you need to submit your proposal (indicating your billboard location) to respective electrical company as you may want to install a suis box as per their requirement before you can connect your electrical wiring.
You need to get 1 thing from them.
1) Approval letter to install suis box and electricity connection





Construction Stage
After you got the advertising permit and approval from local council, JKR, electrical company (TNB, SESCO and SESB), then you can hire steel contractor to construct your billboard structure for you. Before you hire them, you can give them the drawings to quote the price(you can also do this at proposal stage or before submission stage).





Marketing Stage
Please don't ask me how to rent your billboard space or find clients or something similiar question, as I'm sure you will have the ways to do it. After you have found your client, do sign a yearly or half yearly agreement with them but never monthly (Yes, it is better if you sign yearly agreement as you will have less headache in finding new client). Then give yourself a grace period of 2 months to find a printing company to print the advertisement and install the advertisement for you on your billboard.





Things-to-Do
1. Yearly renewal fees for advertising permit. (might incurred other fees depending on your local council rules)
2. Yearly public place contribution fees for Local council and JKR as you are constructing your billboard at public places. (might or might not have depending on your local council rules)
3. Renew your client contract 3 months before it end. If they decide not to rent, you can always have a grace period fo search for new client.
4. Maintenance of billboard structure and electrical accessories.





FAQs
1. How much I need to setup this business?
To be safe, at least 100k or more.

2. The initial capital is so heavy, why?
The billboard structure and license application cost.

3. How much revenue I will be able to gain from this business?
It depends on how much you are renting your billboard. Normally the ROI for this business is 1-3 years.

4. How am I going to collect the money from my client?
Collect 50% deposit upon signing agreement and 50% after installation of ads on billboard.

5. If my client pays the 50% deposit but fail to pay the rest?
Put a clause in the agreement stating that any failure in payment in a specific time, the billboard company has the right to terminate the contract and keep the 50% deposit.

6. Is it hard to apply for advertising license?
Yes and no. It all depends on your local state government and local council ruling. They may implement many procedures to apply for license, or just a few simple procedures. It also depends on the location that you are proposing, some might not be approved, some might need to change design etc.

7. Is it hard to construct the billboard structure?
No. Just consult an engineer to draw a simple steel structure which will withstand the billboard weight load and certain wind load. Hire an experience steel contractor to construct it for you.

8. Can you tell me roughly what kind requirement does the local council/JKR wants in order for them to approve the ads license?
a) Do not obstruct traffic view. Especially at turning area, flyover area, traffic light area. (Just build high)
b) Do not construct billboard that cover the pedestrian bridge. (For safety issue. Most criminal cases happens at the pedestrian bridge due to the bridge was cover with the billboard, therefore if you insist to build on the bridge, do propose above the walkway or on top of the roof)
c) If you propose the billboard at road reserve, drain reserve, open space, buildings, certain structure very likely they will approve it. (There is a risk in proposing at road or drain reserve though. If one day the state government decides to widen the road or drain, you will be instructed to demolish your billboard.)

9. Do I really need to buy Public Liability Insurance?
Yes. Considering that your billboard structure is design to withstand certain wind load. You'll never know which day Mr.Wind becomes nasty and blow your billboard off while damaging nearby properties; worst of all humans. You may never know when your suis box, electrical wiring being sabotage, and shocked nearby pedestrians. So in a nut shell, please do buy Public Liability Insurance.

10. How many types of billboard are there?
As far as I know, Stand-A-Lone billboard (Unipole or multi pole), billboard attaching buildings/bridge or certain structure and gantry billboard

*I will add in some more information if there is any question raised by LYN forumers.

This post has been edited by edyek: Jul 6 2010, 02:23 PM

great guideline. kudos!

edyek.

with >8 business and u still able to post such a detail info here

Nice write up.

I;m sure if someone needs a billboard, they'll know who to contact. kudos

liaise with the media buyer agencies to handle ur marketing for u. a commission will be charged to u once the advert space is sold

how do you collect fees? 30 % upfront and 50% upon printing and all when you publish?

I always heard ad agencies having trouble collecting all their fees, is there some sort of retainer by clients?

What are the common FAQs in a billboard business?

Ur a champ, man.. Thanks for such a superb guide!

FAQs added.

I have a golden question to ask here. Do i have to be bumiputera in order to apply for the billboard license. Wat are the chances of non bumiputera getting the approval?

wondering about LED type billboard.. still need same licensing or we need to apply for special permit/license. thus the billboard act more like a big TV screen.

This post has been edited by slowkancil: Jul 6 2010, 09:36 PM

Very useful thanks for sharing TS^^

btw how do the company charge the client? monthly? yearly?..example for the Pedestrian Bridge at your 1st post how is the charges?

This post has been edited by OnOne: Jul 6 2010, 11:52 PM

No. You do not have to be a bumiputra to apply for billboard license. However, it is useful if you have any bumi friend to be your sleeping partner (As you know the business cultural in Msia).

Yes. Regardless it is static or animated billboard, you still need to apply for advertisement license and approval to construct the billboard structure.

Sign 1 year agreement and renewable yearly. Save the headache and save your time.

1. Building = 5k-10k per month. 60k-120k yearly.

2. Pedestrian bridge = 3k-6k per month. 36k-72k yearly.

3. Individual = 5k-10k per month. 60k-120k yearly.

+ 1000

Self-fulfilling prophecy or what? you give a bumiputra free money, and then you complain that they are getting money for nothing lol

1) There is NO law stating that only bumi can apply for advertisement license. Therefore every race can apply for it.

2) Most of the time, those government servants are BUMI, therefore they put their favourism to bumi individuals or bumi company thus those bumi status company are easy to apply for license. Not so much red-tape procedure needed.

I'm not against giving bumi "free" money, nor do I complain they are getting it for free. I'm a business man myself, and in order to make money there is something I've to sacrifice in order to make money. That's the way of doing business in Msia. Unless we vote for a new government, then it will be a different story.

There is no "the right way" or " the bad way" in doing business. As long as I'm making money in my business, it is good business.

As long as people continue believing that (with no proof other than sic hoc,) bumis will have free money



Cool, then we are second-class citizens by choice lol



http://forum.lowyat.net/index.php?showtopi...=0&p=34821359&#

Will it?

This post has been edited by wodenus: Jul 8 2010, 06:28 PM

1. I've nothing to comment about being a "second class" citizen. As long as I'm making what I'm suppose to have, then I'm fine with it. I'll leave those political issue of being a "second class" citizen to those opposition.

2. That what I'm trying to say. Unless we vote to change the government, till then we just get ourself adapted to what business culture that is in Msia. No use fighting for it, if you can't even get your stomach full. Get your stomach full first, then if you want to go and vote for change,by all means go ahead.

Wow thx edyek...another useful information from ya. appreciate that.

Superb info bro......thanx for sharing with us

Hi edyek,

thanks and i think we all here are really appreciated ur sharing here..
btw i have few questions:

1. what type of engineer that your friend is?
2. how much approximately the license appliance will be?
3. the amount of charge on client is it very dependent on the size/material of the billboard? then what will be the market rate on particular size?