Lamar Advertising Company (LAMR) J.P. Morgan 54th Annual Global Technology, Media and Communications Conference summary

Industry sentiment and performance

• Conference attendees expressed increased enthusiasm and confidence compared to the previous year, with strong recent earnings across major industry players fueling optimism.

• National advertising, previously a headwind, has become a tailwind, with both new and returning clients contributing to growth.

• Local business remains steady, with certain verticals like quick service restaurants and local services, especially legal services, showing robust growth.

• Political advertising is outperforming expectations, driven by intense local races and a significant portion of spend coming from advocacy rather than candidate campaigns.

• AI and technology sector advertising has entered the top 10 categories, particularly in markets like San Francisco and Las Vegas.

Programmatic and digital transformation

• Programmatic advertising grew 25% in Q1, surpassing earlier expectations, with growth attributed to returning clients and increased adoption by digital specialists.

• The company is expanding programmatic offerings to local clients through a new platform, Flex Direct, aiming to make buying easier and increase local participation.

• Digital billboard conversions continue at a steady pace, with regulatory and logistical hurdles being the main constraints to acceleration.

• Digital conversions yield consistent high returns, with margins between 65% and 75%, and allow for multiple advertisers per board, increasing revenue potential.

Operational improvements and technology

• Completion of the ERP project is expected in August, with anticipated margin improvements of 100 basis points this year and further enhancements into 2028.

• AI is being integrated to improve client creative quality, with internal tools being developed to guide clients on effective billboard design and reduce ineffective AI-generated content.