Out of home (OOH) advertising revenue rose 4.4 percent in the third quarter of 2012 compared to the same period in 2011, accounting for more than $1.5 billion, according to the Outdoor Advertising Association of America (OAAA). The increase in revenue highlights the industry’s positive revenue growth for more than two years.
“Advertisers continue to increase spending on OOH, recognizing the medium’s strategic uses, innovative solutions, and versatile mix of formats that can surround consumers while away from home – where they spend 70 percent of their waking hours,” said OAAA President & CEO Nancy Fletcher.
For the first nine months of 2012, McDonald’s was the top advertiser in OOH spending, followed by Verizon and Chase.
In addition to these major brands, media advertisers such as FOX and NBC have maintained a place on the top spenders list throughout 2012, helping to position OOH as one of the fastest growing media in the US. BBC America grew its spending by nearly 1,000 percent this year.
“OOH is a medium that other media use,” said OAAA Chief Marketing Officer Stephen Freitas. “Other media recognize the value OOH adds to a media plan, so it’s no surprise the Media and Advertising category is up nearly 6 percent in the third quarter compared to last year.”
Misc. Services & Amusements recorded the highest revenue growth as the segment continues to lead OOH spending each quarter. Retail came in a close second in the months leading into back-to-school and early holiday shopping, up by more than 16 percent in Q3.
OOH ad revenue also grew in the Government, Politics & Organizations segment this year, up 14 percent in 2012 compared to the same time frame in 2011.
Freitas added, “OOH saw an increase in political ad spending this election year. Political candidates and action groups put OOH’s innovation to use, embracing flexible digital networks and seizing a captive commuter audience.”
OAAA 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 billboard, street furniture, transit, alternative, and cinema advertising, as well as digital platforms for advertising spending.