The U.S. Ad Market is Flattening —An Analysis of the Rest of The Ad Industry

We reported the OAAA’s announcement that Out of home (OOH) advertising revenue increased 40.5 percent in the first quarter of 2022 compared to the previous year, accounting for $1.8 billion. Many of you asked us how that compares with the rest of the advertising industry.

Here’s an analysis of the rest of the ad industry from Standard Media Index, which captures actual invoicing data from all major holding companies and most major independents, representing 95% of national brand ad spend.

Standard Media Index Core Release

May 2022

May 2022 spending was relatively flat year-over-year with a modest amount of growth.  However, it was the second-highest spend month during year-to-date 2022 and the best  May on record (per SMI Core data, back to 2017).

Q2 2022 (Apr – May)

Digital and Out-of-Home continued to post the largest percent spend increase vs. 2021.

Upward Digital momentum continued, with online channels representing a 56% share of  dollars, after newly surpassing Television in the same period last year. (i.e., Apr – May  2021)

Linear TV spend receded in Q2 to date, as gains in the Sports Genre (+15%), primarily  NBA and NHL, failed to balance out the pull-back across Entertainment (-14%) and News  (-4%).

OOH had the greatest percentage growth in the quarter thus far. Year-over-year,  Entertainment & Media (+55%) and Pharma (+66%) sectors primarily drove growth in ad  revenue for Out-of-Home media.

Insights by Media Owner

Only Facebook and Disney sustained ad spend gains into May 2022 vs. 2021, amplifying  last year’s Covid-19 recovery trajectory.

Facebook reached a new high for the month, +8% vs. 2021 and +61% vs. 2020. Banking  & Investments marketers were prime investors in Facebook. Notably, Online Retailers  (+142%) and Toys & Games (+133%) marketers ramped up advertising, more than  doubling their investment in May 2022.

Disney ad revenue grew +5% vs. March 2022 and +46% vs. March 2020. Disney was the  only top-five Traditional Media Owner to display increased spending in the Linear space  (+8%). Prescription Drugs showed the heftiest investment, while the Credit Cards sector  notably expanded +156% over the previous year.

Warner Bros. Discovery Digital ad revenue rose +46% vs. 2021, counteracting Linear  declines (-5%) but not enough to tip the scale toward overall growth. Prescription Drugs  and Automotive Vehicles & Dealerships led the pack among investors, while Credit Cards  (+93%) and Banking & Investment spend rose significantly.

Insights by Product Category Group

CPG, Pharma and Technology remained the top three categories, tracking back to March  2020. Prescription Drugs, -7%, drove year-over-year declines in Pharma, while Tech  receded across all subcategories.

Travel and Apparel & Accessories attained the strongest percentage growth vs. May  2021. As we continually return to pre-pandemic activities and summer travel arrives, we  see Hotel & Casino Resort (+97%) double and Cruise Lines (+276%) triple investments.  Meanwhile, Clothes & Apparel (+ 41%) and Jewelry & Watches (+19%) propelled Apparel  & Accessories at large.

Entertainment & Media continued to grow (+9%) vs. May 2021. Pre-recorded Content  rose by nearly +$100MM, by far the strongest volume increase year-over-year within the  sector. Spectator Sports, Concerts, & Live Entertainment also had ample lift, +36% over  the previous year.

[And while you’re at it, revisit Geopath’s 2021 Full-Year OOH Spending Report]