Out-of-Home Advertising Outpacing Overall Ad Business

Based on figures released by the Outdoor Advertising Association of America (OAAA), out of home advertising revenue rose 4% in 2011 compared to the previous year, accounting for $6.4 billion. The increase in revenue was consistent for each quarter of the year with total growth up 3.0% in the fourth quarter.

Stephen Freitas, OAAA Chief Marketing Officer, says “Out-of-home advertising outpaced the overall ad business and other local media last year... ,” while OAAA President & CEO Nancy Fletcher says “... more brands are recognizing the value out of home advertising can add to a strategic media plan.”

Several industry categories performed well all year, most notably the Schools, Camps & Seminars sector, which was up 22.4% for the year. Other notable growth categories were Media & Advertising; Financial; and Miscellaneous Services & Amusements, which is comprised mainly of local brands. The Communications category flattened in 2011after a decrease in the fourth quarter.

Top Ten Outdoor Advertising Expenditures (2011; $000)

Industry Category

Ad Spend Jan-Dec

% Change

Misc. services & amusements

$1,130,744

11.6%

Media & advertising

$626,062

14.5

Retail

$536,624

2.8

Financial

$504,682

12.5

Restaurants

491,906

5.4

Public transportation, hotels & resorts

485,517

-4.8

Communications

$447,187

-0.3

Insurance & real estate

344,973

-4.8

Government, politics and orgs

274,701

-6.8

Schools, camps & seminars

$255,535

22.4

Source: OAAA, February 2012

Four of the top five advertisers increasing out of home media spend last year were financial brands; namely Chase, Prudential, JP Morgan, and Citi. Five of the top 20 advertisers increasing out of home spend were in the Media & Advertising category.

Out-of-home or OOH advertising at 4% significantly outpaced the 1.5% growth pace of overall advertising through the first three quarters of the year. It is also well ahead of radio, the only other media to announce full-year results so far, and which was up 1% in 2011.

Stephen Freitas, OAAA Chief Marketing Officer, note that “... the industry has grown steadily for the past seven quarters, and that growth trend is expected to remain strong.”

Out-of-Home Advertising Revenue (Billion $; Includes Billboard, Street Furniture, Transit, Alternative Media, & Digital Platforms For Advertising Spend)

Year

Revenue in $B

2005

$6.3

2006

6.8

2007

7.3

2008

7.0

2009

5.9

2010

6.1

2011

6.4

Source: OAAA, February 2012

OAAA issues full industry pro forma revenue estimates that include, but are not limited to, Miller Kaplan and Kantar Media (which is not adjusted to reflect changes in data sources), and member company affidavits.

Media Buyer Planner opines that “...when... Kantar Media releases its final tallies for 2011 in March, out-of-home... will probably be the fourth-fastest-growing category, behind Spanish-language media, cable TV and the internet...”

For the OAAA release, please visit here, or for a detailed chart in PDF format from Kantar Media, OAAA, February 2012, visit here.

 

 

 

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1 comment about "Out-of-Home Advertising Outpacing Overall Ad Business".
  1. Kevin Williams from Padvertisement.com , March 6, 2012 at 9:22 a.m.
    As expected.. We are looking forward to a prosperous year!