Several major research shops have pointed to a slowing revenue picture for the ad industry in 2012. However, the out-of-home channel is continuing to grow. To explain the growth, industry experts point to the effectiveness of the channel as well as heavily-contested political elections.
In the 1st half of 2012, marketers paid $3.486 billion for out-of-home messaging, a 4.4% increase over the same period a year earlier. Top categories for outdoor advertising expenditures, and the change from the previous year, include:
- Miscellaneous services and amusements: $644 (million) (+9%)
- Media & advertising: $338 (+3.5%)
- Retail: $302 (+16.1%)
- Transportation, hotel, restaurants: $283 (+5.9%)
- Financial: $250 (-6.1%)
Not surprisingly, spending by political organizations has increased 10% during the first half of this year and stands at $166 million. And, in the 2nd quarter of this year, auto dealers and services returned as one of the top 10 advertisers in the out-of-home market with a quarterly spending level of $81.7 million which is an 11.3% increase over the same period last year.
Billboards continue to dominate the industry, accounting for 65% of revenue. Transit (17%), street furniture (6%), and place-based digital (12%) comprise the rest of marketer placements. Over the past decade, the out-of-home channel has increased its take of the marketing pie from 3% to 5%. Nancy Fletcher, president and CEO of the Outdoor Advertising Association of America (OAAA) believes this is because out-of-home is the "ultimate advertising vehicle for disrupting and engaging."
If spending continues at this level, the industry will surpass last year’s growth rate which came in at 4.0%.[Sources: Out of Home Advertising. Oaaa.org. 22 Aug. 2012. Web. 12 Sept. 2012; Immersing Consumers in OOH. adweek.com. 30 Apr. 2012. Web. 12 Sept. 2012]