Word on the Street: Revenue Is Up —
So Why Are We Losing Ground?
Sometimes the biggest story isn’t the number you’re celebrating…it’s the one you’re not measuring
The headlines practically wrote themselves.
Record revenue. Twenty consecutive quarters of growth. Another milestone for out-of-home.
Those are accomplishments worth celebrating. Every operator, agency, supplier and salesperson in this business should take pride in what the industry has achieved.
Then came an observation from one of the Industry’s best and brightest that stopped me in my tracks.
This person, who shall remain nameless; because a certain Industry ‘Granola Bar Set’ become overly excited when anyone says anything remotely negative or ‘painfully reality truth’, about our wonderful OOH biz, raised an important point: while OOH continues to post impressive revenue gains, we need to pay attention to whether we’re growing our share of the overall advertising marketplace.
Read that again.
This person raised an important point: while OOH continues to post impressive revenue gains, we need to pay attention to whether we’re growing our share of the overall advertising marketplace.
Those are two very different scorecards.
Scorecard 1: OOH Revenue Gains
Scorecard 2: Increased OOH Market Share
Imagine owning a restaurant that posts record sales every year. Sounds terrific—until you discover every competitive restaurant near you is growing even faster. Congratulations…you’re making more money, but you’re becoming less relevant in the marketplace.
That’s the distinction our industry can’t afford to ignore.
We often celebrate gross revenue. Advertisers care about something else: where they allocate their next marketing dollar.
If total advertising spending grows faster than OOH, we’ve had a good year—but we’ve still lost ground.
That’s not a failure.
It’s a warning light on the dashboard.
If total advertising spending grows faster than OOH, we’ve had a good year—but we’ve still lost ground.
That’s not a failure. It’s a warning light on the dashboard.
To be fair, there is plenty to like.
1. Digital OOH continues to expand.
2. Transit and street furniture are posting impressive gains.
3. New advertiser categories continue to embrace the medium.
4. The industry’s momentum is real, and everyone involved deserves credit for that progress.
But momentum alone isn’t the finish line.
The question we should be asking isn’t; “Did we grow?”
The question is, Did we convince advertisers to devote a greater share of their budget to OOH?
Those are entirely different conversations.
If television loses share to us, that’s a win.
If digital budgets increasingly include OOH because brands recognize its unique ability to reach consumers in the real world, that’s a win.
If we’re simply riding a growing advertising economy while other media capture a larger share of new spending, that’s not a Win, that’s Cow Manure!
The industry’s leaders have spent years improving measurement, proving effectiveness, embracing technology, and making OOH easier to buy. Those investments are paying dividends.
The good news? If any medium is positioned to earn a larger slice of tomorrow’s advertising pie, it’s OOH. We simply have to keep giving marketers compelling reasons to move more dollars our way.
Now comes the next challenge.
Not just growing revenue.
Growing relevance.
Because at the end of the day…
Revenue pays the bills.
Market share shapes the future.
The best industries do both.
Editor’s Note: For the aforementioned ‘Granola Bar Set’: Word on the Street isn’t questioning the industry’s success. It’s challenging us to define success by the metric that matters most in the long run. That’s how good industries become great ones.
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