Commentary

Traditional Out-Of-Home Media Continues Growth

Based on figures released by the Outdoor Advertising Association of America (OAAA), Out Of Home (OOH) advertising revenue rose 3.8 % in the second quarter of 2015 compared to the previous year, accounting for $2.25 billion. According to Kantar Media, total ad spend in the US was down nearly 7 % for the quarter, and OOH and local radio are the only traditional media to see significant growth.

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US Out-Of=Home Advertising Revenue Trends (YOY % Change; Q1 2013-Q2 2015) 

Year/Quarter

Percent Change

2013

   Q1

4.5%

   Q2

5

   Q3

5

   Q4

3.5

2014

   Q1

1%

   Q2

0.8

   Q3

1.5

   Q4

1.1

2015

   Q1

4.7%

   Q2

3.3

Source: OAAA, August 2015

OAAA President & CEO, Nancy Fletcher, said “… all major OOH categories continue to grow… nine of the top 10 product categories showing increases for the year… particularly significant given the comparison to other traditional media and second quarter GDP growth of 2.3 %... ”

The nine revenue growth categories included:

  • Miscellaneous Services and Amusements
  • Retail
  • Media & Advertising
  • Public Transportation
  • Financial
  • Insurance & Real Estate
  • Government, Politics & Organizations
  • Communications
  • Automotive Dealers and Services 

Ranked in order of OOH spending, the top 10 advertisers in the second quarter were:

  • McDonalds
  • Apple
  • Metro PCS
  • Warner Bros Pictures
  • Geico
  • Verizon,
  • Chase
  • AT&T
  • Citi
  • 20th Century Fox Pictures

Among the top 50 OOH advertisers, those with increases greater than the OOH quarterly growth of 3.8 % included (in order of growth): Microsoft, Universal Pictures, Verizon, T-Mobile, HSBC, Coca Cola, Walt Disney Pictures, Chick-Fil-A, Warner Bros. Pictures, New York State Lottery, Anheuser-Busch, Accenture, Cox, Samsung and Kroger.

Stephen Freitas, OAAA chief marketing officer, says “… the most significant trend in advertising today is the shift to digital… this hasn’t impacted OOH the way it has other traditional media, because OOH complements… digital marketing… especially mobile… the fastest growing of all digital platforms… ” 

The OOH industry generates $7 billion annually in ad revenues and donates more than $450 million in space each year. Revenue estimates include digital and static billboard, street furniture, transit, alternative, and cinema advertising.

For more information from the OAAA, please visit here.

 

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