• by Erik Sass  @eriksass1, June 6, 2006

The outdoor ad business continued to enjoy strong growth by both quarter-to-quarter and year-to-year measures, with first-quarter revenue for 2006 revenue 8 percent higher than 2005--topping $1.4 billion in total spending, according to a revenue report released Monday by the Outdoor Advertising Association of America (OAAA). Outdoor thus outpaced the ad industry's total 5.2 percent growth--although it lagged behind the Internet both in growth rate (19.4 percent) and total dollars ($3.9 billion).

The 8 percent growth rate is still remarkable because historically, the last and first quarters are slow for outdoor advertising. For example, the first quarter of 2005 enjoyed a more modest 2.9 percent increase over first-quarter 2004--but the industry enjoyed expansive growth in the warm months that followed. In fact, third-quarter 2005 recorded 10 percent growth over 2004, with revenue topping $1.5 billion. And other data suggests that outdoor is enjoying a long-term boom--above all the industry's slow, steady march from a $2.6 billion market in 1992 to $6.3 billion market in 2006.

Acknowledging the historical record, Stephen Freitas, chief marketing officer of the OAAA, boasted: "Indications are that the growth trend will continue into the second quarter and through the summer months." Considering seasonal variation, and the relative year-over-year growth figures available thus far for 2005 and 2006 (2.9 and 8.0 percent growth in the first quarter, and 10 and an unknown percent in the third quarter, respectively), the future does look bright for outdoor advertising.

Meanwhile, another report, released Monday by Scarborough Data, revealed an unusually well-heeled and tech-savvy cohort aboard the nation's trains, as well as walking to work (so-called "Power Pedestrians" who walked three or more miles in an urban area in the past week)--all of which spells more good news for the outdoor industry. According to Scarborough, city-dwellers who ride the subway are 93 percent more likely to plan the purchase of an MP3 player, while commuter rail passengers are 62 percent more likely to do so and "Power Pedestrians" are 44 percent more likely. Mass transit users are also 15 percent more likely to have household income greater than $150,000 a year.