US Out-of-Home Advertising Growth Slows in Q1 2020

July 23, 2020

OAAA US Out of Home Ad Revenue Trends Q1 2012 Q1 2020 Jul2020US out-of-home (OOH) advertising revenue grew by 4.8% year-over-year in Q1 2020 to reach $1.9 billion. But although any growth is welcome in the current climate, this represents the smallest percentage year-over-year growth OOH has seen since Q3 2018, according to figures released by the Out of Home Advertising Association of America (OAAA).

The first quarter of 2020 finds Apple, McDonald’s, Geico, Amazon and HBO as the top 5 OOH advertisers. OAAA also reports that one-quarter of the top spenders in OOH advertising in this quarter were technology or D2C brands, including the likes of Amazon, Apple, Facebook, Google, LinkedIn, Netflix and Hulu.

Additionally, 23 of the top 100 OOH advertisers, such as Shopify, Facebook, Coca-Cola and Walmart, more than doubled their investment in OOH advertising compared to Q1 2019.

Three industry categories also increased their investment in OOH fairly significantly. Notably, Government, Politics & Orgs – the seventh-largest spending category – hiked its investment by 20.6% year-over-year. Insurance & Real Estate (#4; +17.4%) and Media & Advertising (#2; +12.8%) also increased their outlays. The Miscellaneous Local Services & Amusement category, which ranked #1 in OOH spending for the quarter, increased spending by 3.5% year-over-year.

Meanwhile, some other categories decreased their investment in OOH in Q1: Automotive Dealers & Services (#10; -7.7%) and Public Transport, Hotels & Resorts (#5; -4.2%) were the only categories in the top 10 to cut their investment in OOH over Q1 2019.

In its forecast of media spend for 2020, Winterberry Group estimated that OOH would see growth both for traditional OOH and digital OOH. However, with the COVID-19 pandemic turning early forecasts of media spend on their head, more recent projections see advertising revenues for linear ad sales, including OOH, expected to decrease significantly.

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.”

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