Year-to-Date Revenues on Par with Record-Breaking High in 2019, Pre-Pandemic
WASHINGTON D.C. – Out of home (OOH) advertising revenue increased 11 percent in the third quarter of 2022 compared to the previous year, accounting for $1.94 billion, based on figures released by the Out of Home Advertising Association of America (OAAA). Digital OOH continues to power overall OOH growth as the segment jumped 14 percent compared to Q3 2021. For 2022 year-to-date, OOH is up 25.7 percent and comparable with the historical YTD high set in 2019 at $6.4 billion.
“This strong growth is a direct reflection of the value marketers place on the medium and its benefits,” said Anna Bager, President and CEO, OAAA. “Key sectors are increasingly investing more dollars – in particular, political spending in out of home hit record highs. It confirms OOH’s ability to effectively reach audiences at national and local levels and is surely a harbinger of more momentum to come.”
In the third quarter, nine of the top ten industry product categories increased including (listed in order of growth rate): Media & Advertising; Public Transportation Hotels and Resorts; Schools, Camps and Seminars; Government, Politics and Organizations; Automotive Dealers and Services; Local Services & Amusements; Restaurants; Financial Services; and Retail.
The four top growth industry categories showcase current socioeconomic trends:
1. Media & Advertising grew 32 percent, driven by streaming and internet services.
2. Public Transportation, Hotels and Resorts growth of 26 percent reflected consumers’ pent-up desire for real-life experiences.
3. Schools, Camps and Seminars jumped 17.3 percent driven by online learning and vocational/trade schools.
4. Government, Politics and Organizations category achieved a quarterly record high $134 million, fueled by a Q3 high $7.5 million in political spending, mostly for US Senate and House, state, and local government races, plus ballot issues. The category also saw significant increases in federal, state, and local government spending for economic, environmental, health, safety, and social issues.
• 79% of the top 100 OOH advertisers increased their OOH spend from Q3 2021
• Nearly one-third (32%) of the top 100 OOH advertisers more than doubled their spend
• The top 10 advertisers with the greatest dollar spend increase, listed in rank order, were: Paramount+, Apple, Google, T-Mobile. Samsung, Panera, Stellantis, IHG, Uber, and American Express. Their spend increases ranged from +2538% to +57%.
• Over one-quarter (27%) of the top 100 OOH spenders are technology or direct-to-consumer brands including: Airtable, Altice, Amazon, Apple, AT&T, BetMGM, ClickUp, Comcast, Disney, DoorDash, DraftKings, DuckDuckGo.com, Expedia, Expensify, FanDuel, Google, Hotels.com, Hulu, Indeed, Intel, Live Nation, Netflix, Paramount+, Samsung, T-Mobile, Uber, and Verizon
MAGNA, a division of IPG, forecasts OOH will be the fastest growing ad channel in 2022 with a projected annual increase of 21.8 percent.
OAAA issues full industry pro forma revenue estimates that include, but are not limited to, Miller Kaplan and Kantar (which is not adjusted to reflect changes in data sources), and member company affidavits. Revenue estimates include digital and static billboard, street furniture, transit, place-based, and cinema advertising.
About the OAAA
The Out of Home Advertising Association of America (OAAA) is the national trade association for the entire out of home (OOH) advertising industry. OAAA represents over 800 members, including leading media companies, advertisers, agencies, ad-tech providers, and suppliers, which comprise over 90 percent of the industry. OOH media includes billboards, street furniture, transit, place-based media, and digital formats (DOOH) across every sector of the channel. OAAA is the unifying voice for the industry, the authoritative thought leader, and the passionate advocate for advancing OOH advertising in the United States. The legislative unit of OAAA advocates for the responsible growth of OOH with federal, state, and local governments. OAAA-member media companies donate over $500 million annually in public service advertising. Founded in 1891, OAAA is headquartered in Washington, DC, with offices in New York City.
For detailed charts, go to http://bit.ly/3P3vR0J and https://bit.ly/3VNDfAh.