Out of home (OOH) advertising revenue grew by 7.7% year-over-year in Q2 2019, the highest growth OOH has seen in any quarter since 2007, according to figures released by the Out of Home Advertising Association of America (OAAA). This growth has lifted the OOH industry up to a 7% gain for the first half of 2019.
The OAAA reports that digital OOH accounted for almost one-third (31%) of the total OOH revenues in Q2 2019. Indeed, it’s largely due to the growth in digital that OOH has remained one of the few traditional advertising formats experiencing growth.
Data from WARC attributes the predicted growth of OOH this year almost exclusively to digital. Looking forward, PwC forecasts that digital OOH advertising will grow by an estimated $1.3 billion between 2019 and 2023, while at the same time, physical OOH is expected to see little, if any, growth.
Although McDonald’s and GEICO remain the biggest spenders on OOH advertising, OAAA’s release also reveals that more than one-quarter of the top 100 OOH advertisers were tech companies. Apple was the third-largest spender in OOH advertising during Q2 (moving up a position from last year), while Amazon and Facebook were the 6th and 7th largest, respectively.
Almost 70% of the top 100 OOH advertisers increased their ad spend year-over-year from Q2 2018 with a reported one-quarter of them more than doubling their spend.
A few industry categories also considerably increased their investment in OOH. Notably, Insurance & Real Estate – the sixth-largest spender – saw a 25.3% year-over-year change. Automotive Dealers & Services (10.6%) and Misc Services & Amusement (10.5%) also increased their outlays significantly.
Three industry categories, Government, Politics & Orgs (#8; -9.4%), Financial (#7, -4.7%) and Restaurants (#4; -0.8%) were the only in the top 10 to cut their investments in OOH year-over-year.
About the Data: OAAA notes that it “issues full industry pro forma revenue estimates that include, but are not limited to, Miller Kaplan and Kantar Media (which is not adjusted to reflect changes in data sources), and member company affidavits. Revenue estimates include both printed and digital formats of billboard, street furniture, transit, and place-based, which includes cinema advertising.”