Out-​of-​Home Ad Spending to Remain Strong

Out-​of-​home (OOH) ad spending continues to perform well this year. During the first 6 months of 2013, advertisers paid more than $3.7 billion to have billboardtheir ads seen on billboards, street furniture and transit locations and in cinemas. The industry trade association, the Outdoor Advertising Association of America, points out that growth in the format has been steady since 2010 and is expected to continue.

In the second quarter, ad spending on OOH was $2.2 billion. This represents a significant increase over the $1.7 billion spent in the first quarter. Restaurants represent a bright spot in OOH spending. So far this year, restaurants have paid $313.5 million to have their messages seen in a variety of OOH formats, a 10.7% increase over this sector's $283.6 million expenditure level through the same period in 2012. Another big growth category has been schools, camps and seminars. These organizations have spent $153.3 million in 2013, a 7.4% increase. Not surprisingly, government and political spending has been the category with the steepest spending drop, 7.8%. This category will likely rise again in 2014 when the mid-​term election advertising begins. The largest category in the OOH format remains miscellaneous services and amusements with year-​to-​date spending of $680 million, marking a 5.5% rise over 2012.

In the second quarter this year, retailers accounted for 8.8% of OOH ad spending. However, last year, retailers accounted for over 10% of spending in the OOH format during the fourth quarter. It’s likely retailers will again be spending big sums in the format as the busy holiday season approaches. This activity l bodes well for OOH which has been rolling out new digital enhancements which allow marketers to engage interactively with passers-​by in some venues.

Have you been using OOH this year? Do you find the format adds lift to a campaign when used with other formats like TV or online?

Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.