SALESFUEL TODAY

Out-of-Home Ad Market Poised to Grow

by | 2 minute read

Which media for­mat is prac­ti­cal­ly guar­an­teed to catch con­sumers’ atten­tion as they slog between work and the office? Out-of-home. Whether it’s bill­boards, tran­sit, street fur­ni­ture or place-based, con­sumers notice these ads. Mar­keters appear to be fig­ur­ing this out as they spent $1.848 bil­lion on third quar­ter OOH ad spend­ing. That spend­ing lev­el is 3.8% high­er than it was dur­ing the same peri­od last year.

OOH Spending Levels

OOOA ana­lysts report that spend­ing in the top ten ver­ti­cals account­ed for 80.7% of the media format’s rev­enue in Q3. Mis­cel­la­neous ser­vices and amuse­ment mar­keters topped the list with $428 mil­lion in spend­ing and 23.2% of the Q3 rev­enue. Oth­er big spend­ing sec­tors include:

  • Retail $181 mil­lion
  • Media/advertising $165 mil­lion
  • Restau­rants $121 mil­lion
  • Finan­cial $121 mil­lion
  • Pub­lic transportation/hotels/resorts $118 mil­lion
  • Insurance/real estate  $109 mil­lion
  • Government/politics/organizations $103 mil­lion
  • School/camps/seminars $72 mil­lion
  • Auto dealers/services $70 mil­lion

OOH Digital Influence

A MAGNA report cit­ed by OAAA ana­lysts indi­cates that all adver­tis­ing is on track to grow by 2.1% in 2018. When com­pared to the pro­ject­ed drop in tra­di­tion­al media adver­tis­ing of 5.1%, OOH oper­a­tors have plen­ty to cheer about with regard to their larger-than-average growth rate.

If you sell OOH space, remind your clients that this old-school media for­mat has kept up with the times. In fact, dig­i­tal OOH ad spend­ing com­pris­es 28% of the total. Dig­i­tal bill­boards can be pro­grammed to take envi­ron­men­tal con­di­tions into account when they deter­mine which ads to dis­play. Com­muters stuck in traf­fic might be influ­enced to buy on the way home after they see your clients’ ads about take-home din­ners. Keep in mind that the 370,000 active bill­boards in the U.S. make up 66% of OOH ad spend­ing.

OOH Competitive Advantage

OOH also works well with oth­er media for­mats to influ­ence con­sumer pur­chas­es. Indus­try research shows that con­sumers exposed to bill­boards turn to search tools to learn more about a prod­uct they’ve seen adver­tised. They’ll also check out social media. Accord­ing to sur­veys, mar­keters can count on a 47% jump in sales acti­va­tion when OOH and oth­er media for­mats work togeth­er.

If your clients are still hes­i­tant about OOH adver­tis­ing, show them the aver­age cost for CPM for the fol­low­ing media for­mats:

  • Cable TV $17.67
  • Mag­a­zine $12.92
  • Face­book $11.20
  • YouTube $9.68
  • Insta­gram $7.91
  • LinkedIn $6.59
  • Twit­ter $6.46
  • Bill­boards $5.22
  • Radio $4.95

They’ll like­ly be will­ing to spend $5.22 to reach 1,000 peo­ple. And you show them who is most influ­enced by OOH adver­tis­ing when you share Audi­enceS­CAN data col­lect­ed AdMall from Sales­Fu­el.

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.