• by Erik Sass  @eriksass1, June 13, 2008

Feeling the effects of a slowing economy, out-of-home advertising revenues grew a modest 3% to almost $1.62 billion in the first quarter of 2008m compared to last year, reports the Outdoor Advertising Association of America. That's down from the high single digits of previous quarters.

The slowdown coincides with what has traditionally been a slow season for out-of-home, but there is no mistaking the repercussions of broader economic woes. By category, the two biggest declines in ad spending came in real estate and insurance, reeling from the sub-prime mortgage meltdown (down 11.5%) and automotive dealers and services, which have suffered as consumers rein in spending on big-ticket items (down 4.5%).

These declines were offset by strong growth in the financial category, up 16.1%; public transportation, hotels and resorts, up 6%; and retail, up 5.7%.

While out-of-home is still faring better than other traditional media, 3% growth looks anemic compared to the first quarter of 2007, when out-of-home revenues grew 8% to roughly $1.57 billion.

The percentage slowdown represents a decrease in the amount of dollars added, as well: from 2007-2008, first-quarter revenues increased by about $50 million, compared to almost $120 million added from 2006-2007.