Some marketers may consider out-of-home advertising to be a traditional media format. It’s true that many billboard and other outdoor spaces are static. But, the industry’s rapidly changing. The availability of both traditional and digital options is one reason revenue keeps rising in OOH.
The latest release from the OAAA indicates that Q3 sales in the OOH ad space reached $1.78 billion. That’s a 1.9% increase over the previous period. These gains are being driven by two industry sectors — financial services companies and the tech giants.
In Q3, which covers the period from July to September, the top ten industry sectors contributed to the bottom line for out-of-home properties as follows:
- Miscellaneous services and amusements $398.9 million
- Retail $167.4 Million
- Media/advertising $156.7 million
- Restaurants $ 138.9 million
- Public transportation, hotels, resorts $117.5 million
- Financial $114 million
- Insurance/Real estate $94.4 million
- Government, politics, organizations $75 million
- Communications $695 million
A few of these categories decreased in demand from the previous year. Not surprisingly, political advertising is down 11.6% from Q3 in 2016. OOH reps should know that there is still political advertising taking place though. Local races are hot. And, in many districts, PACs are spending money to influence the electorate on a range of issues.
The biggest category increase in Q3 2017 was financial services. Advertisers in this sector shelled out 25.6% more than they did last year to reach consumers. For the year, the financial sector has spent 14.4% more than it did last year at this point. This trend isn’t surprising, given how well the economy is doing. Consumers are looking for ways to manage and invest their money. Reps can continue to ride this wave by promoting their OOH spots to financial services marketers that want to connect with consumers who need to start planning for how to manage their investments before the end of the tax year.
In addition, OAAA analysts reports that a few top advertisers are driving gains in the OOH market. In particular, tech marketers have added OOH to their media mixes. The likes of Google and Amazon are increasingly reaching out to consumers directly through OOH formats.
If you're looking for a way to boost sales of your OOH space, check in with the services and amusements businesses in your market, pitch your best deals to banks and credit unions, and try to connect with large marketers in the tech sector.