Digital billboards are being installed along Santa Monica's Third Street Promenade as part of a city-led initiative to revitalize the struggling outdoor shopping area. The California Coastal Commission approved the installation of up to 16 digital displays along the Promenade and at Santa Monica Place in April, reversing a 1985 ordinance that had banned off-site advertising.
The new billboards, which can be up to 1,000 feet in size, are expected to remain in place for 30 years. Construction has already begun, with metal mounting frames being erected across buildings. City officials project that if all 16 displays are built, they could generate between $3.5 million and $7 million in annual revenue. Operators are required to pay a one-time fee of $500,000 per display, with that cost increasing by 3% starting in June 2027.
The revenue generated is intended to support local economic recovery. The city's plan allocates the first 85%, or up to $5 million, toward boosting the economy. An additional 5% will go towards downtown revitalization efforts, and the remaining 10% will be used to repay funds borrowed from the Housing Trust Fund. This initiative follows other recent efforts, including a $3 million economic development fund approved in March for tenant assistance and business recruitment, and the creation of an "Entertainment Zone" last year allowing patrons to carry alcoholic beverages outdoors.
However, the installation has drawn criticism from some residents and observers who believe the large digital screens will alter the Promenade's character. Critics have expressed concerns that the displays will detract from the area's unique charm and appeal. Online commentary has described the change as "tarnishing the look of the promenade" and suggested that the city council is "single-handedly trying to destroy Santa Monica."
Some critics have also suggested that the decline of businesses in the area is linked to issues such as homelessness, and that addressing these problems would be a more effective revitalization strategy than installing billboards. They argue that fundamental issues need to be resolved before aesthetic changes can make a significant impact.
The Third Street Promenade, which opened in 1965, was once a popular destination for shopping, dining, and entertainment. However, it has faced challenges in recent years, including empty storefronts and a significant homeless population, particularly since the pandemic. The digital billboard project represents one approach by city officials to attract shoppers and businesses back to the area, contrasting with other proposals for the Promenade's future, such as a conceptual rendering by tech entrepreneur Raad Mobrem that envisioned the space as a lush botanical garden.