"When it comes to people actually remembering ads, that would be billboards. According to Nielsen Reporting, 86% of viewers recall ads from billboards they pass, which significantly beats online ads (57%) and radio ads (46%). That's good news for Lamar Advertising . Founded in 1902, the Baton Rouge, Louisiana-based $13.5 billion company is now the undisputed leader in outdoor advertising. Its approximately 360,000 displays in 45 states and Canada include over 159,000 billboards."
"Lamar Advertising made headlines last August, when filings revealed that Berkshire Hathaway had invested $141.9 million in the company. Last quarter, it bought another 32,603 shares. What might Buffett, or his lieutenants Todd Combs and Ted Weschler, see in this stock? A "wide and long-lasting moat" Buffett has spoken of the importance of moats around businesses. The analogy describes a company that enjoys a stranglehold on a sector because of brand power, or efficient distribution, or high costs from switching services that discourage consumers."
Billboards generate strong ad recall, with Nielsen reporting 86% viewer recall compared with 57% for online and 46% for radio. Lamar Advertising controls roughly 360,000 displays, including over 159,000 billboards, a footprint far larger than its nearest competitors. Berkshire Hathaway disclosed a $141.9 million stake and later acquired additional shares, signaling investor interest. Regulatory barriers created by the Highway Beautification Act of 1965 restrict billboard size, spacing, lighting, locations, and require state approval. States face a 10% loss in federal highway funding if they fail to implement billboard-control programs, reinforcing the regulatory moat.
Read at The Motley Fool
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