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This article was published in Outdoor advertising Magazine in 2004.
Written by: Kevin Reilly Jr.
Lamar Advertising Company is one of the leading outdoor advertising companies in the world today. We currently operate over 134 outdoor companies in 44 states, logo businesses in 21 states and Ontario, Canada. We trace our roots to an unlikely source: a vaudeville opera house in Pensacola. Fla.. and the flip of a coin.
Tin- Associated bill Posters of the United States granted a charter to J.M. Coe of the Pensacola Amusement Company on March 5, 1902, creating the Pensacola Advertising Co., a small poster company involved in promoting the coming attractions of the Opera House. In 1903, Charles W. Lamar Sr., then the president of the American National Bank of Pensacola, entered into a partnership with Coe. In 1908, when Lamar and Coe decided to dissolve their partnership and divide their assets, a coin flip was used to determine who would get the poster business and who the opera house, which was the more lucrative business of the two. Lamar lost the flip, and Coe got the opera house, which was later damaged by hurricanes and torn down. Lamar took control of the poster company, and Lamar Advertising was born. What a clear example of how success can trace its roots to adversity.
Lamar changed the name of the small company to Lamar Outdoor Advertising and began to operate it as a sideline business. As lime went by, however, the business became more and more profitable, and in 1926 Lamar and his two sons, Charles Lamar Jr. and L .V. Lamar of New Orleans, purchased the Baton Rouge Poster Advertising Co., which became the Lamar Advertising Co. of Baton Rouge. When Charles Lamar Sr. died in 1944, Charles Jr. and his two sisters took over the management of the Louisiana and Florida operations of the now prosperous and growing family business.
In 1958, a third generation took up management of the company—represented by Kevin Reillv Sr., who had married Charles Lamar Sr.'s granddaughter, Ann Switzer Reilly. Reilly oversaw the company's steady growth into a series of new states and regions oxer the next la years. His uncle-in-law. L.V. Lamar and later L.V.'s son, Albert, managed the Lamar offices in Jackson, Miss., and Panama City, Fla. During the 1960s, Reilly acquired additional offices in Alabama. Florida and Louisiana. In 1973, a management company. The Lamar Corporation, was formed to facilitate management of the operating companies. In 1979, the corporate headquarters was moved to its current facility on Corporate Boulevard in Baton Rouge.
Members of the Lamar family have continued to contribute to the Lamar success story over the years. Robert Switzer, the great-grandson of Charles Lamar Sr., started with the company in 1976 and now is vice president of operations. His two brothers also worked for Lamar. Charles Lamar III became the company's first general counsel in 1982 and retired in 1998. Kevin Reilly Sr.'s three sons have also been key players for the company: Wendell was Chief Financial Officer from 1985 to 1989 {a position now handled by Keith Istre}: Sean is the Chief Operating Officer and Kevin Reilly Jr. is now the President and Chief Executive Officer.
Becoming an Industry Leader
The business founded by Charles W. Lamar Sr. in 1908 has retained a spirit of innovation and entrepreneurship throughout its transformation from family business to industry leader. Since the beginning, the company has responded to the needs of customers by expanding into strategic markets and diversifying its products, a strategy that has built Lamar into the premier outdoor advertising company in the markets it serves.
Since 1989 the company has entered a new phase of growth and diversification, including its expansion into the interstate logo business under the guiding hand of Everett Stewart. Lamar is now the nation's largest operator of logo signs, which provide information about available services at highway exits.
Lamar has continued to seek new approaches to help advertisers reach their best potential customers, including transit advertising, located on bus shelters, benches and buses.
Since his appointment as Lamar's CEO in im Kevin Reilly Jr. has guided the company through its most successful period of growth to date. He has over seen Lamar s development from a fourth-generation family-owned enterprise into publicly traded company that is one of the industry's largest operators. A new Delaware corporation, Lamar Advertising Co., was formed in 1991 to assume 100 percent ownership of the company's assets and lo hold its public debt. In 1996, Lamar made its first public offering of company stock, which began trading on the NASDAQ exchange under the symbol LAMX.
Expanding Market Coverage
During 1997, Lamar increased its total number of displays by 47 percent by way of strategic acquisitions. In April 1997. the company acquired Penn Advertising, resulting in displays throughout New York and Pennsylvania. Filling Out West Virginia next, Lamar acquired McWhorter Advertising in May 1997. The acquisition of Headrick Outdoor came in June 1997. adding more than 3,000 bulletins throughout the Southeast and the Midwest. In August 1997, the company acquired specific coverage in key top markets from Outdoor Systems. Inc., marking Lamar's expansion into the 50 largest U.S. markets.
In 1998, purchases of Ragan Outdoor, Derby Outdoor and Pioneer Outdoor gained Lamar presence in Illinois, Iowa, South Dakota and Missouri. Later that year, Lamar purchased Northwest Outdoor, picking up coverage in Washington, Montana. Wyoming, and Idaho. In 1999. when the company completed an acquisition of the outdoor advertising division of Chancellor Media, it took over the number one position in the Industry in total number of display signs operated.
Although Lamar has significant coverage in top markets, the company maintains growth and strong presence in markets ranking between 50 and 250. Keeping this strength top of mind. Lamar acquired inventory from Olympus Media in July of 2004, filling out its existing footprint of smaller market coverage in 19 states across the U S.
Local Ties Strengthen Growth
Reilly credits Lamar's management team for the company's decade-long growth streak. Despite dramatic growth under Reilly's guidance, Lamar has remained a remarkably flat organization. Each of its 132 individual outdoor plants is operated by a Vice President/ General Manager of the organization who takes on an executive role in his or her market as if it were their own company. Autonomy among this executive level with the closest ties to local market activity results in Lamar's unusual strength as the largest local media company in the US. Under each serves a local sales and service staff, ensuring that management can quickly respond lo the needs of its local customers.
This strong local connection within each market operated by Lamar ensures that the company Is part of the communities in which it operates. The philosophy is simple: when Lamar management lives, works and plays in the communities where they do business, the company enjoys the ability to work amongst business owners who are friends and colleagues within the city still supported within a larger national company.
Setting the Pace for Performance
Lamar's commitment to innovation and decentralized decision-making has contributed to the rare longevity of it's managers. Sean Reilly leads the outdoor group and with the help of Keith Istre our CFO. Bobby Switzer our VP of Operations. Tommy Teepell our CMO, and John Miller Director of National Sales. The members of Lamar's management team have an average tenure with the company of more than 25 years. Our Regional Managers - Robert Campbell. Tom Simon. Flip Durant. Chip Laborde, Paul Gartland. Mark Sherwood, Herb Scobey. Phil Cherry and Scott Butterfield are the "General. of the Battlefield". They set the pace for the corporate performance. That experience, combined with a continuing focus on the unique needs of Lamar's customers, will guide Lamar's operations as it seeks opportunities in the outdoor advertising environment of the new millennium
People ask “what is my vision for Lamar." The answer is clear and simple. We would like to be an effective, credible alternative for advertisers both national and local. If you look at our sales growth over the years, absent 2001 through 2003, our sales have grown both organically and from acquisitions. We will continue to aggressively acquire outdoor properties and evaluate complimentary advertising properties. - Kevin Reilly Jr.
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