OOH Advertising Sector To Experience Strong Gains in 2020
The out-of-home advertising market continues to be one of the few traditional media formats with a bright future. In a recent post, citing Brian Wieser’s ad industry projections, we reported that there is no format that will disintermediate the OOH market in the way that the TV and print sectors have experienced. Last year, the Outdoor Advertising Association of America reports, the OOH market reached $8 billion in spending, which was a 4.5% increase over the previous year.
Top Sectors in OOH Advertising
Several business categories are key contributors to the strong OOH market. Last year, the following categories drove higher ad sales in this format as follows:
- Government, Politics and Organizations +14.6%
- Insurance and Real Estate +14.6%
- Schools, Camps and Seminars +13.2%
- Miscellaneous Local Services & Amusements +8.2%
- Retail +6.6%
- Financial +6.2%
Local services and amusements businesses make up the largest ad buying sector in OOH, accounting for over 23% of sales. Retailers come in second with 10.3% of ad sales.
This year, lower political ad spending will impact the bottom line for the OOH sector. However, Wieser reports that in 2020, OOH will grow by 8.1% because of ad buying related to local referendums, state campaigns and the national elections.
Key OOH Advertisers
Last year, several big spenders accounted for significant OOH ad buying. McDonalds, Geico and American Express bought ad space to attract attention as consumers drove to work, rode the subways or strolled through parks. While we like to think of tech companies as being primarily digital advertisers, that’s not always the case. Facebook, Amazon and Apple ranked in the top 15 companies that purchase OOH advertising in 2018. In fact, Apple has been in either the first or second place for the past 6 years.
OOH advertising remains an effective way for your clients to connect with consumers. “OOH is as relevant as ever because it offers high impact and amplifies all other media investments, including today’s largest ad channel – digital,” said Stephen Freitas, OAAA chief marketing officer. To learn more about which consumers take action as a result of OOH advertising, check out the AudienceSCAN profile available at AdMall from SalesFuel.