The Challenge:
Faced with budget shortfalls, the City of Los Angeles announced its intention to put a measure on the March 2011 municipal elections ballot which would impose a 12 percent tax on advertisers using billboards. In recent years, city officials had imposed a strict ordinance banning the construction of new billboards within the city. Along with the new law, the city proposed creating a new revenue source by placing a new tax on existing billboards. The City Council modeled this proposed tax after a similar billboard tax in the City of Philadelphia. Van Wagner Outdoor Advertising retained Cerrell Associates to quickly develop a strategy to fight this unfair tax and position it as a burden on Los Angeles’ already struggling local business community.

Key Cerrell Activities:

• Developed a strategic plan with messaging based on three elements. First, the proposed tax's economic impacts were unknown because city officials had not studied the issue. Second, the proposed tax measure's wording was misleading. As proposed, the "billboard tax" was not a tax on outdoor advertising companies. Instead, it was a tax imposed on the advertisers using billboards. Third, this tax would do great harm to the Los Angeles business community because advertisers would have to increase their ad prices, which would affect advertising volume and ultimately sales.
• Led the effort for Van Wagner to organize a coalition of 25 companies including other outdoor advertising companies, the Los Angeles Area Chamber of Commerce, the entertainment industry, the advertising industry, as well as other members of the city's business community.
• Coordinated meetings between coalition members and local government officials to discuss the Billboard Coalition's issues and the concerns.

Results that Speak for Themselves:
Cerrell Associates strategic plan and key messaging helped Van Wagner effectively fight and stop this new burden on the Los Angeles business community. The outreach campaign resonated with City Councilmembers. When confronted by a diverse and united coalition that was armed with thorough and accurate information, the City Council ultimately decided not to put this measure on the March 2011 ballot. Cerrell Associates continues to represent Van Wagner in its efforts to ensure that any policy changes toward outdoor advertising are fair not only to the billboard companies, but also to the entire Los Angeles business community.

Contact Us:
Lisa Gritzner, President
P:323-466-3445 | E:lisa@cerrell.com | web:www.cerrell.com

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