Oakland seeks millions in revenue from program converting billboards into digital ads

OAKLAND, Calif. (KGO) -- The city of Oakland may have found a way to ease its budget deficit, and it has to do with modernizing some of the many billboards scattered throughout the city.

The city council is set to decide if it will convert more of the billboards into digital advertisements. The idea may bring in millions to the city.

Oakland's many billboards may have different messages. But the new digital billboards being introduced will help serve one common goal, says Oakland City Council Member Noel Gallo.

"Becker is ready to provide the City of Oakland $2.3 million and that will certain help us balance our budget," Gallo said.

MORE: Oakland passes $4.2 billion 'back to basics' budget, erasing record deficit

The company Becker Boards introduced five digital billboards earlier this year, which are mostly visible along the freeways. Next week, city council is set to vote on five more that will go up around the city. If approved, it could generate $35 million for cash-strapped Oakland. It would be paid out as close to a million dollars annual, with $2.3 million secured for this new budget cycle.

"The money generated from those billboards is going directly to some of (the) nonprofits in my district that are continuing to serve the neighborhood," Gallo said.

That's because Gallo said some of the revenue has been earmarked for nonprofits. And the deal even allows for community groups and schools to advertise for free.

Peter Gamez, CEO of Visit Oakland, said that opportunity helps to amplify activities around Oakland to drivers from across the Bay Area. And there is data to prove it, he says.

MORE: Oakland councilmember concerned city isn't appropriately addressing overtime pay error

"As recently as 'Black Food and Wine Experience' that just was held last weekend in Oakland. Being able to put that event on a billboard raised awareness. We could see it based on the amount of website (traffic) we were getting for their information," Gamez said.

Despite the revenue boost, there have been complaints and concerns. Competing billboard companies have raised concerns about the selection process. And some residents have complained about blight. Initially, that was case for Judith Scott.

"All of sudden there is this big thing in the sky. But I got used to it. It doesn't bother me at all," said Scott, who lives across the street from one of new billboards.

City council is set to vote on the new proposal on June 17.