The third quarter of 2020 was another disappointing quarter for out-of-home advertisers (OOH), with the Out of Home Advertising Association of America (OAAA) reporting that OOH advertising revenues dropped 36% over the same quarter last year, bringing in $1.3 billion in revenues.
This has definitely not been a good year for OOH advertising. With business closures and stay-at-home directives earlier in the year and social distancing requirements restricting public gatherings, Q2 revenues tumbled 45% year-over-year (y-o-y). Indeed, OAAA reports that in the first three quarters of this year, revenue is down by 28.5%, to $4.6 billion.
Big brands like Geico, McDonald’s, Apple, Allstate, Anheuser Busch and HBO were some of the top OOH advertisers in Q3, followed by Amazon, MillerCoors, Cracker Barrel and Verizon. On the positive side, OAAA reports that 40 of the top 100 OOH advertisers increased their spend in Q3 over the same quarter in 2019. Furthermore, 14 brands, including Quibi, TripAdvisor, Vonage and PayPal doubled their spend year-over-year during the quarter.
The top OOH advertising category for the quarter was Local Miscellaneous Services & Amusements, which accounted for about one-quarter (26%) of total investment. Retail followed at #2, accounting for 10.3% of total spending. Rounding out the top 5 advertising categories for the quarter were Insurance & Real Estate, Restaurants and Government, Politics & Organizations, accounting for 8.3%, 7.6% and 7.2% of total revenue, respectively.
Media & Advertising, which ranked at #6, saw the biggest y-o-y decrease, with spending dropping 56.6% over Q3 2019. Public Transport, Hotels & Resorts (#7) and Financial (#8) also cut their investments significantly, with spend dropping 43.9% and 43.3% respectively.
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.”