Total out-of-home advertising industry US revenue was $1.3 billion in Q309, a 17.2% drop vs. Q308, according to the Outdoor Advertising Association of America. The decline is slightly less than that of Q1 and Q2 and could indicate stabilization in the outdoor advertising market.?
Outdoor advertising fell 18% in the first and second quarters of this year, and was down 6% in Q308, writes MediaBuyerPlanner. For the first nine months of 2009, total OOH industry revenue was $4.49 billion.
All Top Categories Down
Every one of the top 10 outdoor advertising categories was down in the third quarter compared to the previous year, the OAAA data revealed. Insurance and real estate spending was particularly off, down 26.9%.
Still, Q3 was the first time in more than a year that the declines decreased, quarter-to-quarter, OAAA said.
“While other media was going into the bunker, outdoor advertising was investing in itself,” said Nancy Fletcher, OAAA president and CEO. “Better measurement, a more attractive and environmentally friendly product, and the continued roll out of digital platforms have all put outdoor advertising at the forefront of innovation.”
Fletcher added that it is likely that the outdoor advertising market has hit bottom in terms of the current recession. She characterizes the future of outdoor advertising as “bright.”
Nielsen recently said US outdoor advertising fell 15.1% through the first nine months of the year. US ad spending overall declined 11.5% during the same period.
ZenithOptimedia predicts that outdoor, along with TV and cinema, will return to positive growth in 2010.
Digital out-of-home is still expected to be on a growth trajectory. A November report from BIA/Kelsey predicted that digital out-of-home (DOOH) spending will increase at an annual rate of 13.5%, from $2.2 billion in 2009 to $3.7 billion in 2013, by far outdistancing traditional out-of-home’s expected 1.4% growth (which will grow from $4.4 billion to $4.6 billion).
But in order for digital out-of-home to truly boost out-of-home’s prospects, the medium must begin to be consolidated. Digital out-of-home is much less consolidated than traditional out-of-home, making it difficult for buyers to purchase DOOH, noted MediaBuyerPlanner.
“DOOH must get easier to plan, buy and measure in order to reach scale,” said Rick Ducey, chief strategy officer of BIA/Kelsey. “With consolidation, partnerships and interoperable platforms, we see the buying process becoming more integrated, which will spur growth.”