Business Report By Stephanie Riegel June 21, 2017
Baton Rouge-based Lamar Advertising is continuing its growth in the airport advertising business with the acquisition of Atlanta, Georgia-based Corey Airport Services, a boutique advertising agency that specializes in airport advertising displays. The acquisition, which will close July 1, will nearly double the number of airports in which Lamar is doing business.
Corey Airport Services has contracts with nine airports in seven southern states, including Dallas Love Field.
Lamar currently has concessions in 11 airports, most of which are in the west or southwest.
Lamar currently has concessions in 11 airports, most of which are in the west or southwest.
Terms of the acquisition were not disclosed, though Lamar President and CEO Sean Reilly characterizes the deal as “relatively small”-several million dollars.
It’s significant, however, because it will give Lamar-already the largest outdoor advertising company in the world-a larger footprint in the lucrative airport advertising sector.
“It’s not a big deal but we’ll do about $10 million in revenues out of it and give or take $1 million in cash flow contribution, and that will take our airport business to where it’s doing about $38 million to $40 million in revenues and $5 million in cash flow contribution,” Reilly says. “So it’s a growing part of our business.”
With Lamar’s overall revenues at around $1.5 billion, a $38 million to $40 million airport business still represents less than 3% of the company’s overall revenues. But the sector can be very profitable. It’s also a good way to test new creative concepts.
“It’s a great venue to experiment with,” Reilly says. “You can do fun executions because you have an indoor setting. Airport travelers have lots of time on their hands so you can reach them in new ways. … And when we do a really smart execution, the customer will pay for it.”
Lamar broke into the airport advertising business just two years ago with the acquisition of Alliance Airport Advertising.