Out-Of-Home, Cinema Ad Revs Spike

Watching-TV-in-Bar-ABuoyed by increases in a number of categories, out-of-home advertising revenue increased 4.5% to $1.4 billion in the first quarter of 2012, according to the Outdoor Advertising Association of America. This marks the eighth consecutive quarter of year-over-year revenue growth for the medium.

In terms of categories, the biggest increase in dollar terms was miscellaneous services and amusements; major increases were also seen in government, politics and organizations, reflecting increased political ad spending during an election year. OAAA said political ad spending will continue to grow as November elections draw closer.

The OOH medium has sustained a steady growth rate over the last few years, following a strong recovery from the general advertising downturn during the recession. From the second quarter of 2010 to the last quarter of 2011, OOH posted year-over-year quarterly increases of 3.6%, 7%, 6.5%, 4.2%, 4.5%, 4.2%, and 3%, respectively. Total out-of-home revenues increased from $5.9 billion in 2009 to $6.4 billion in 2011.



The industry is also growing thanks to the rapid expansion of digital out-of-home networks and associated advertising revenues. According to a recent analysis by PQ Media, total U.S. DOOH revenues grew 15% to $2.05 billion in 2011. They are on course to grow another 12.5% to $2.3 billion in 2012.

Cinema advertising, which is counted in the OAAA figures, has also experienced strong growth, with National Cinemedia -- the nation’s largest cinema advertiser -- reporting first-quarter growth of 11.7% to $79.1 million.

However, DOOH has hit a snag. Digital billboards continue to face resistance at the local and state levels in some parts of the country.

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