Puerto Rico has become a growing market for American businesses. In recent decades, technology has allowed for quicker trade and travel to and from the island. The beautiful Caribbean island draws tourists from around the world for its beautiful beaches and vibrant culture. In 2019 alone, tourism in Puerto Rico generated over five and a half billion US dollars. Thus, it’s no surprise that business opportunities in Puerto Rico have been on the rise.
Puerto Rico is a protected American territory, which means that American businesses are more easily able to develop there rather than go to other countries. Real estate is relatively cheap, corporate tax rates are low, and wage costs are lower compared to the mainland. The recent enactment of Act 20 and Act 22 also provides 100% tax exemption on capital gains, interests and dividends earned.
The island offers some great opportunities for businesses across different sectors, and its proximity to the American mainland makes importing and exporting more efficient than running a business anywhere else in the Caribbean.
Puerto Rico’s Economy
Puerto Rico’s economy is dominated by industry and manufacturing, followed closely by the services sector. The manufacturing sector, which mainly produces drugs, electronics and petrochemicals, accounts for about 50% of the island’s GDP (gross domestic product). Tourism, finance and trade dominate the services sector. Puerto Rico has limited natural resources, but continues to produce agricultural products. Its agriculture sector – making up roughly 0.7% of Puerto Rico’s GDP — produces sugar cane, coffee, pineapple and more.
Next, we will discuss how businesses in Puerto Rico can take advantage of its growing and lively economy.
Benefits of OOH in Puerto Rico
Billboards and OOH (Out-of-Home) Advertising is one of the best ways to promote your business. This is especially true in Puerto Rico. Not only are locals moving around and about, but the tourists, ready to spend some cash, love the island and flock to it year after year.
OOH advertising is crucial in Puerto Rico especially considering how many outdoor activities that visitors can enjoy. Whether people are sightseeing, lounging on one of many Puerto Rico’s many pristine beaches, or enjoying the lush nature in the area, people are sure to see outdoor advertising.
You can expect high engagement from effective billboard advertising in cities like San Juan, Ponce, Bayamon and Carolina because of the high foot and vehicle traffic in these areas. Here are other reasons why OOH advertising is so effective in Puerto Rico.
Billboards are thought to be traditional, and they are. However, they’re also evolving with the times. Billboards can certainly help you capitalize on business opportunities in Puerto Rico.
“Billboards have adapted to the times and are still one of the most popular ways to advertise.” -Eric Hamilton, Tech Times
Digitized billboards are everywhere these days. Times Square billboards in New York City are a perfect example, and there’s a reason why consumers are so captivated by them. Digital billboards have revolutionized OOH advertising. Unlike static billboards, digital billboards can offer multiple design options and even showcase multiple ads on one ad space.
Smart billboards are also on the rise as a dynamic form of digital billboards. Smart billboards use advanced technologies that allow those who encounter them to engage and interact with the advertisement. Technologies that are implemented on smart billboards include sensors, geotargeting, facial recognition and other interactive features.
Urbanization and Traffic
Urbanization continues to expand all over the world, and Puerto Rico is no exception. Puerto Rico’s population is almost 3.2 million. On top of that, people are more mobile than ever. It only makes sense for businesses to place ads where the people will be.
In Puerto Rico, the high density of vehicle and foot traffic exposes a large number of the population to billboard advertising. The island’s elaborate highway system increases vehicle traffic even further, offering many placement opportunities for OOH advertising.
High Return On Investment (ROI)
Capitalizing on billboard advertising will help you get the most out of your brand’s advertising budget. Since billboards tend to be located in busy areas, they gather a large number of views and reactions, resulting in a higher return on investment (ROI). The placement of your billboard is just as important as what it looks like. Desirable locations will be more expensive than locations where there is not as much traffic.
Billboard advertising also gives you full control of the ad space, and your ad will always have constant exposure, 24/7. Other forms of advertisement such as TV and radio ads can be costly and won’t reach an audience as large as a billboard would. This makes billboards one of the most cost-effective methods of advertising, as they have a wide reach and are proven to increase brand recognition.
Billboards are effective in increasing brand recognition. Billboard advertising is one of the oldest forms of advertising. However, it continues to evolve and remain effective in reaching and captivating an audience. Billboards target a wide demographic in a single advertising tactic. By properly placing an effective ad, businesses have the opportunity to capture any and all potential buyers..
Additionally, there are high chances that people who encounter your OOH advertisement will encounter it more than once, allowing them to remember your brand or product, and even engage with it. Billboards are large and good at capturing the attention of people passing or driving by. Make sure that your billboard is designed with the customer in mind to increase your brand recognition.
Expert Advice at bMedia Group
Both traditional and digital forms of billboard advertising have proven to be one of the most effective and withstanding marketing strategies of all time. At bMedia, our seasoned and well-trained team will help your business get the most out of your OOH advertisement.
With proper insights and strategies, bMedia can help your business set foot in Puerto Rico. bMedia can help to expose your brand to a continuously growing and lucrative market. Contact bMedia Group and we’ll help you maximize your marketing strategy on the island.
Capitalizing on billboard space is capitalizing on business opportunities in Puerto Rico.