ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Friday, April 18, 1997 TAG: 9704180042
SECTION: BUSINESS PAGE: A-14 EDITION: METRO
SOURCE: MEGAN SCHNABEL THE ROANOKE TIMES
Tobacco's share of outdoor ad revenue has fallen from almost 40 percent in 1979 to 10 percent today.
With the nation's two largest tobacco companies suggesting a ban on all outdoor advertising of their products, local and national billboard companies are having to imagine business without a couple of familiar customers - Joe Camel and the Marlboro Man.
"Any time you look at losing business of this nature, there are some downsides," said Keith Austin, general manager of Lamar Advertising Co.'s Roanoke office.
Lamar, which has 900 outdoor signs in Southwest Virginia, already had begun preparing for the enforcement of rules issued in August by the federal Food and Drug Administration. Under the new rules, tobacco billboards would be banned within 1,000 feet of schools or playgrounds, and use of cartoon figures that children would find interesting such as Joe Camel would be forbidden.
While some of Lamar's short-term billboards may be within 1,000 feet of a school, Austin said, none of the company's more permanent ads would have to be moved to comply with the FDA rule.
But on Wednesday, Philip Morris Cos. and RJR Nabisco Holdings Corp. disclosed they are talking about getting rid of all tobacco billboards, as well as prohibiting the use of any human figures in their ads.
It's part of the companies' attempt to settle with states that are seeking to recover smoking-related health costs. The companies also would establish a multibillion-dollar compensation fund for smokers.
Some cities are considering tobacco-ad ordinances of their own. The Lynchburg City Council has discussed banning cigarette ads in certain areas, although the city is waiting to see whether advertising companies will voluntarily limit billboard placement, City Attorney Walter Erwin said.
But even a complete ban on tobacco ads wouldn't cripple Lamar or other local companies, Austin said. Lamar already limits the number of tobacco billboards it will run in a year to no more than 20 percent of its leasable signs and posters, and several local companies don't accept tobacco ads at all. All told, less than 3 percent of all billboards in the Roanoke Valley, New River Valley and Lynchburg markets promote tobacco products, he said.
Nationally, tobacco accounts for much less outdoor ad revenue than formerly - 10 percent today vs. almost 40 percent in 1979, according to the Outdoor Advertising Association of America.
If Lamar were forced to stop accepting tobacco ads, he said, billboards now hawking cigarettes would be prime real estate for local restaurants or shops.
"Our local business here in the valley is so strong that we would probably have the opportunity to replace that business fairly easily," Austin said. "So we haven't been absolutely scared to death."
LENGTH: Medium: 56 linesby CNB