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You are absolutely right about trying to vectorize it if at all possible, but many billboards contain photos and other images that can't be vectorized without imparting a completely different look.  So, the best one can do is to work on each of the bitmapped areas in separate PS files, using low rez surrogates along the way, if possible and necessary, and then put them together with the vector parts in AI or PS as a near-final step.

T