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Outdoor Ad Revs Rise To $1.5 Billion
Date: June 10, 2013
Out-of-home advertising revenue grew 4.5% from $1.4 billion in the first quarter of 2012 to $1.5 billion in the first quarter of 2013, according to the latest figures from the Outdoor Advertising Association of America.
That marks the 12th straight quarter of increases for out-of-home, which has been chugging along with a steady year-over-year growth rate in the mid-single-digits since the second quarter of 2010, including a 4.2% increase in 2012.
The top category in terms of spending was miscellaneous services and amusements, with revenue of $286.5 million, followed by retail at $141.3 million, media and advertising at $135.4 million, restaurants at $121.4 million, public transportation, hotels and resorts at $111.3 million and financial at $110.5 million.
The biggest percentage increases were seen in retail, which was up 12.4% from the previous year, and restaurants, up 11.6%. A notable increase was also seen in automotive ad revenue, which jumped 8.1% to $61.1 million, putting it back in the top 10 outdoor ad categories.
The biggest decrease was seen in media and advertising, which decreased 10%.
At this rate outdoor advertising is on track to outpace the overall media business in 2013. A recent forecast from Magna Global predicts a 2.4% increase in total U.S. ad spending this year, following a weak first quarter, when last year’s political and Olympic advertising are included.
Magna sees year-over-year growth of just 0.4% in 2013 and predicts 3.5% growth for outdoor advertising for the year.
Outdoor advertising’s growth is being fueled, in part, by the continuing expansion of digital out-of-home advertising, which allows billboard owners to display multiple ads and charge advertisers by dayparts. According to a separate report from PQ Media, total U.S. DOOH advertising revenues increased 7.4% to $2.17 billion in 2012.
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