US out-of-home (OOH) ad expenditures rose 4.3% year-over-year in Q2 2012 to reach $2.05 billion, according to quarterly data released in August by the Outdoor Advertising Association of America (OAAA). This represents the ninth consecutive quarter of revenue gains for OOH advertising, although it is a small slowdown from growth rates a quarter earlier and a year earlier (each at 4.5%).
OOH ad expenditures for the first half of 2012 rose by 4.4% year-over-year, to a total of $3.49 billion.
Retail Posts Strongest Gains
Of the top 10 industry categories tracked by the OAAA in Q2, ad spend in Miscellaneous Services and Amusements (which consists mainly of local brands), at $373 million (18.2% share), was roughly twice as high as expenditures by second-place Media and Advertising, at $186 million (9.1% share).
Third-place retail ($176 million; 8.6% share) showed the fastest growth of all categories in Q2, at 16.4%. Political advertising spend also continued to grow, as the Government, Politics and Organizations category showed the next-highest year-over-year increase, of 14.3%. OAAA observes a rise in both candidate and public issues ads from campaign buyers and political action groups.
Communications, Financial Sectors Tighten the Reins
After increasing its OOH expenditures by 7.9% year-over-year in 2011, the financial category continues to pull back on spending this year. In Q2, the category decreased its spending by 10.6% year-over-year, following a 2% pullback in Q1. For H1 overall, spending by financial advertisers decreased by 6.1% year-over-year.
The communications sector contracted its spending even more. For H1, communications advertisers spent $208.75 million, down 14.4% from $243.8 million a year earlier. Q2’s spending decline of 19.1% was also the largest of the top 10 categories.
Other Findings:
- The auto dealers segment returned to the top 10 list in Q2, following an 11.3% year-over-year increase in spending.
- For H1, retail spending on OOH rose by 16.1%, easily the fastest rate among the top 10 categories.
- The top 10 industry categories in Q2 accounted for 79% of all expenditures. For H1, the top 10 industry categories accounted for 80.3% of total OOH revenues.
About The Data: OAAA issues full industry pro forma revenue estimates that include, but are not limited to, Miller Kaplan and Kantar Media (which is not adjusted to reflect changes in data sources), and member company affidavits. Revenue estimates include billboard, street furniture, transit, alternative, and cinema advertising, as well as digital platforms for advertising spending.
