Outdoor Revenues Up 4.4%, Benefits From Digital OOH

McDonalds-billboard-AOut-of-home advertising revenues grew 4.4% to over $1.5 billion in the third quarter, up from around $1.4 billion in the same period of 2011, according to the Outdoor Advertising Association of America.
McDonald’s was the top advertiser in terms of out-of-home ad spending in the first nine months of 2012, with Verizon in second place and Chase in third place. The OAAA also noted substantial spending by other media brands this year, including Fox, NBC, and BBC America; the latter increased its outdoor spending by a factor of ten in 2012.

Overall, the media and advertising category increased 6% in the third quarter compared to 2011. The period also saw ample political ad spending, with the government, politics, and organizations segment up 14% compared to the same period in 2011.
The third-quarter results continue a relatively strong 2012, with OOH ads consistently outpacing growth in overall advertising spending. Out-of-home ad spending grew 4.5% in the first quarter and 4.3% in the second quarter, according to the OAAA. For the first nine months of the year, total revenues came to over $4.9 billion, up 4.4% from $4.8 billion in the same period of 2011. In 2011, out-of-home ad spending totaled $6.4 billion, up 4% from $6.15 billion in 2010.
Although not mentioned by OAAA in the Q3 revenue announcement, out-of-home ad spending also continues to benefit from the rapid expansion of digital out-of-home advertising, including digital billboards, in-store media, and place-based digital video networks. PQ Media is forecasting 12.4% growth in U.S. digital out-of-home revenues in 2012, to $2.3 billion.

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