US out-of-home (OOH) revenues increased by 7.5% year-over-year (y-o-y) in 2019, hitting a new high of $8.6 billion, per figures released by the Out of Home Advertising Association of America (OAAA). The growth rate was quite a leap compared to those of 2018 (4.5%), 2017 (1,2%) and 2016 (3.1%).
OOH’s Q4 2019 revenue growth reached 7% y-o-y, as no single quarter averaged less than 6% year-over-year growth. The results also indicate that OOH advertising has grown on a year-over-year basis for 39 consecutive quarters, or in each quarter for almost a full decade.
As seen in recent years, digital has accounted for a growing share of OOH revenues, with OAAA attributing 31% of total OOH revenues in 2019 coming from digital platforms, up from 29% in 2018.
This growth has been predicted to continue into 2020. Earlier projections from Winterberry Group estimated that spending on traditional OOH advertising would grow by 3.3% this year, while ad spend on digital OOH was expected to see a 7% y-o-y increase. However, it is safe to assume that these forecasts will be adjusted to reflect the effects the coronavirus is having on advertising.
Tech Brands Continue to Spend Big on OOH Ads
Last year Tech brands made up one-fifth of the top 20 OOH advertisers in the US. Amazon topped the list, replacing Apple, which moved down to #3. Other tech companies that made it into the list of top 20 OOH advertisers were Google (#6), Facebook (#15) and Netflix (#16).
In the meantime, McDonald’s remained at the #2 spot for the 7th consecutive year.
Telecom companies also had a strong showing, with AT&T (#9), Comcast (#14), T-Mobile (#18) and Verizon (#19) among the top advertisers.
Insurance and Media & Advertising Increase Spending
Among the top advertising categories in OOH in 2019, Insurance/Real Estate (23.9%) and Media/Advertising (10.1%) were the leaders in spending growth. Miscellaneous Services/Amusements (8.2%), Public Transportation/Hotel/Resorts (7.3%), Automotive (4.7%), Financial (2.3%) and Retail (1.0%) also increased their ad spend to some degree
Schools/Camps/Seminars (3.9%), Government/Politics/Organizations (19%) and Restaurants (0.8%), on the other hand, decreased their spending in OOH.
The largest advertising category in OOH last year was Miscellaneous Services/Amusements, with its more than $2 billion in spending accounting for close to one-quarter (23.6%) of the total. Retail was the next-largest spending category, constituting almost 1 in every $10 dollars (9.7% share) spent on out-of-home ads.
About the Data: Revenue estimates include digital and static billboard, street furniture, transit and alternative OOH (which includes digital place-based video and cinema advertising).