Out-of-Home Advertising Demand Soars
Marketers see the impact that out-of-home advertising brings to the bottom line. That’s why they boosted spending to the format’s highest growth rate in over a decade. The Out of Home Advertising Association of America (OAAA) reports that Q2 spending rose 7.7% and amounted to $2.69 billion.
Who’s Spending in OOH
Marketing spending in the following top ten categories accounted for nearly 80% of total OOH activity in Q2:
- Services and amusements 23.4%
- Retail 10%
- Media/advertising 8.2%
- Restaurants 7.0%
- Transportation, hotels, resorts 6.9%
- Insurance and real estate 6.4%
- Financial 5.4%
- Automotive dealers and services 3.8%
- Schools, camps and seminars 3.4%
Compared to the same period in the previous year, a couple of categories experienced significant change. Insurance and real estate spending rose over 25% and services and amusement marketers increased their OOH commitment by more than 10%. The financial category saw the biggest drop in OOH advertising with a 4.7% decrease during Q2.
OAAA analysts note that the top ten advertisers in the OOH format ranged from Geico to Apple to Chevrolet. Tech companies remain committed to OOH advertising in a big way. At least 25% of the top 100 companies that buy OOH are tech-based.
Spending Changes and Targeted Audiences
For the first half of 2019, OOH ad spending totaled $4.461 billion. That activity level marked a 7.0% rise over the same period last year. On a year-to-date basis, restaurants and government and political spending experienced a noticeable drop. Decreases came in at ‑6.9% and ‑3.9%, respectively. Going forward, ad buying in all formats, including OOH, is likely to increase in the government and political category. As the 2020 elections draw closer, ad buyers will be looking for the best way to reach voters. OOH is likely to be included in political ad buys.
In addition, OOH remains a key influencer on travelers. Through OOH advertising, marketers can reach the 66% of travelers (Nielsen) who take action on their phones after seeing messages on billboards, in specific locations like street furniture or in the cinema. Learn more about which consumers respond to OOH advertising by checking out AudienceSCAN profiles available at AdMall from SalesFuel.