After a full year of quarterly decreases in revenues, out-of-home advertisers (OOH) have something to smile about. The Out of Home Advertising Association of America (OAAA) reports that OOH advertising revenues for Q2 2021 grew by 37.9% year-over-year (y-o-y), with revenues reaching more than $2 billion.
Up until the second quarter of 2021, it had been a less than stellar 12 months for OOH advertising. The pandemic and the resulting disruptions to businesses and outside social activities contributed to quarterly revenues plummeting starting with Q2 2020 and continuing through Q1 2021, when revenues dipped 31.1% y-o-y.
Brands like Geico, McDonald’s, Apple, Allstate, Anheuser-Busch and Coca-Cola were some of the top OOH advertisers in Q2, followed by HBO, Universal Pictures, Google and the New York City Department of Health & Mental Hygiene. As a further sign that OOH advertising may be coming out of its pandemic-imposed slump, OAAA reports that 80 of the top 100 OOH advertisers increased their spending in Q2 over the same quarter in 2020. Furthermore, 45 of the top 100 more than doubled their spend, while a further 20, including brands like Womply, Postmates, Paypal, DoorDash, T-Mobile and AT&T increased their spend ten-fold or more year-over-year.
The top OOH advertising category for both Q1 and Q2 was Local Miscellaneous Services & Amusements, which accounted for about one-quarter (24.2% and 26.3%, respectively) of total investment for each quarter. Retail followed at #2, accounting for 9.9% of total spending in Q1 and 10.1% in Q2. Rounding out the top 5 advertising categories for Q2 were Insurance and Real Estate (7.9%), Media and Advertising (7.3%) and Restaurants (7.3%).
Insurance & Real Estate (#3) saw the biggest y-o-y increase, with spending increasing by 45.3% over Q2 2020. Government, Politics & Organizations (#6) and Local Miscellaneous Services & Amusements also increased their investment significantly, with spend increasing 44% and 39.5%, respectively.
About the Data: OAAA notes that it “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 both printed and digital formats of billboard, street furniture, transit, and place-based, which includes cinema advertising.”