Out of home (OOH) advertising revenue rose 4.5% in the first quarter of 2012 compared to the same period in 2011, accounting for more than $1.4 billion, according to the Outdoor Advertising Association of America (OAAA). The increase in revenue highlights steady positive year-over-year revenue growth since the second quarter of 2010, with eight consecutive quarters of revenue growth.Revenue estimates include billboard, street furniture, transit, alternative, and cinema advertising (think “Avengers”), as well as digital platforms for advertising spending.
Misc. Services & Amusements recorded the highest revenue dollar growth as the segment continues to lead OOH spending each quarter. OOH ad revenue also grew in the Government, Politics & Organizations segment, which is expected to continue to grow as the election season nears.
“The out of home industry continues to perform well each year,” said OAAA President & CEO Nancy Fletcher, who adds that ad agencies and advertisers “have realized the value OOH can offer when part of a comprehensive media plan.”
“The political season kicks off earlier each election cycle,” said OAAA Chief Marketing Officer Stephen Freitas. “Political advertisers spent on OOH last year and have already proven OOH to be a strategic component in campaigns this year, with spending increases of more than 9% thus far. Both candidate and public issue ads will continue to increase spending in the coming months as political action groups and front runners prepare for the November elections.”
The Out-Of-Home Boost
Adding out-of-home (OOH) advertising formats to other media can significantly boost a campaign’s reach, the OAAA found in a report conducted by the Media Behavior Institute, released earlier this month. The study revealed that the reach of billboards was highest among outdoor formats in terms of exposures, at 83% of adults aged 18-64, with alternative (42%), street furniture (28%), and transit (11%) following. Comparing these formats to the reach of other media, the report suggests that coupling billboards with mobile advertising can increase mobile’s reach by more than 300%, while billboards and the internet together can more than double the Internet’s reach in the afternoon.
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.