The out-of-home (OOH) advertising sector isn’t posting quite the same revenue growth rates as online advertising, but other traditional media channels might be envious of its consistent growth. OOH ad revenues grew by 3.5% year-over-year during Q3, marking the 14th consecutive quarter of growth, according to the latest figures from the Outdoor Advertising Association of America (OAAA). Total revenues exceeded $1.6 billion, and are now at almost $5.3 billion for the year, representing a 4.4% rise from the Q1-Q3 period last year. The only potentially negative sign from all of this is that the 3.5% rate of growth this past quarter is the slowest for a Q3 in at least a couple of years, with Q4 typically demonstrating the slowest rate of growth based on the past couple of years of data.
The insurance and real estate category upped its OOH investments the most rapidly in Q3, with a 17.5% year-over-year increase to about $87 million. Restaurants (+8.4%) and retail (+7.5%) also posted solid spending increases, though the financial (-8.2%) and media and entertainment (-6%) sectors pulled back.
For the quarter, the top 10 categories accounted for 77.8% of total spending, with the miscellaneous services and amusements category remaining the largest spender, at 18.4% share of total expenditures.
Looking at combined figures for Q1 through Q3, the OAAA data indicates that restaurants (+10.5%) have increased their out-of-home advertising expenditures the most, followed by retail (+8.8%). For the year-to-date, retail is the third-largest sector at 8.9% share of spending, behind media and advertising (9.1% share) and the miscellaneous services and amusements category (18.6%).
About the Data: 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. Revenue estimates include billboard, street furniture, transit, alternative, and cinema advertising, as well as digital platforms for advertising spending.