Out-of-Home Spending Fails to Slide in Q1

May 27, 2010

Out-of-home spending remained essentially flat in Q1 2010, according to Kantar Media and the Outdoor Advertising Association of America.

Ad spending slipped 0.7% to slightly more than $1.3 billion, marking the smallest decline since the third quarter of 2008, when ad spending began to slip. For the top 10 categories – which account for 81% of all outdoor revenue – spending was actually up 0.6%.

By Category
–Miscellaneous services and amusements was up 0.5%
–Public transportation, hotels and resorts (down 2.7%)
–Retail (up 2.8%)
–Media and advertising (up 12.9%)
–Restaurants (up 3.3%)
–Communications (down 8.1))
–Financial (up 7.3%)
–Insurance and real estate (down 12.4%)
–Government, politics and organizations (up 21.9%)
–Automotive dealers and services (down 14.6%)

Revenue estimates include billboard, street furniture, transit, and alternative out-of-home media spending.

Digital Particularly Strong
Digital out-of-home has been one area of strength for the out-of-home industry, driven by increased DOOH opportunities. DOOH aggregator and strategist Adcentricity, for example, saw booking and spending in the first quarter jump more than 1,000% versus the same quarter last year, and the company says Q2 2010 is already showing a 50% jump in activity compared to Q1 2010 levels.

Other things helping drive out-of-home spending include higher billboard occupancy rates and better measurement – from Eyes On – which gives buyers more faith in the medium, says Marcy Ryvicker, an analyst with Wells Fargo Securities (via Media Life).

Radio, Online Also Up
Out-of-home is not the only medium to be stabilizing. Online ad spending was up 7.5% in the first quarter of this year, following fourth-quarter 2009 internet advertising growth of 2.6%, according to the Interactive Advertising Bureau and PricewaterhouseCoopers. And radio ad revenue jumped 6% in the first quarter, per the Radio Advertising Bureau.

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