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Out of Home Ad Revenue Reaches Historic High in 2016
Date: March 08, 2017
Revenue Was Up 3.1% to $7.6 Billion
March 8, 2017 (Washington, DC) – Out of home (OOH) advertising revenue rose 3.1 percent in 2016 compared to the previous year, accounting for $7.6 billion, based on figures released by the Outdoor Advertising Association of America (OAAA). OOH spend was up 2.7 percent in the fourth quarter, compared to 2015. The revenue total marks a record high for OOH with 27 consecutive quarters of growth since the recession.
“OOH has set record revenue levels for two consecutive years, and every OOH format grew in 2016,” said OAAA President & CEO Nancy Fletcher. “OOH continues to grow alongside digital media, while most forms of traditional advertising struggle in today’s audience-fragmented environment.”
Among the top revenue categories, those with the greatest growth increase in 2016 included Miscellaneous Local Services & Amusements +9.2 percent; Automotive Dealers & Services +6.8 percent; Financial +5.5 percent; Restaurants +4.7 percent; Government, Politics and Organizations +3.8 percent; and Public Transportation, Hotels and Resorts +2.7 percent.
Ranked in order of OOH spending, the top 10 advertisers in 2016 were McDonalds, Apple, Verizon, Geico, Anheuser-Busch, Sprint, Coca-Cola, American Express, Warner Bros Pictures, and HBO. McDonalds and Apple retained the top two positions for the fourth consecutive year.
Of the top 100 OOH advertisers in 2016, 68 had increases in OOH spend equal or greater to the industry increase of 3.1 percent. Almost one-quarter were from the technology sector, and included Apple, Sprint, Comcast, Amazon, Facebook, Google, Lyft, Netflix, Cox Communications, Cylance, US Cellular, Uber, Boost Mobile, GrubHub.com, and Motorola. Facebook, which began spending in OOH in 2014, jumped to number 28 in 2016.
Among the top 100 OOH advertisers with the greatest spend increase for 2016 were Anheuser-Busch, American Express, Chevrolet, Marriott, Amazon, Facebook, Chevrolet Dealers Association, Capital One, Budweiser, New York State Gaming Commission, Cylance, Uber, Jim Beam, GrubHub.com, Deloitte & Touche, JP Morgan, and Motorola.
“The real, powerful advertising capacity of OOH continues to drive growth with its ability to connect with consumers through a diverse mix of formats,” said Stephen Freitas, OAAA chief marketing officer. “OOH offers advertisers a unique value proposition with bold creative delivered in contextually relevant environments. These factors, along with the expansion of digital platforms, will continue to drive OOH growth in the coming years.”
OAAA issues full industry pro forma revenue estimates that include, but are not limited to, Miller Kaplan Arase and Kantar Media (which is not adjusted to reflect changes in data sources), and member company affidavits. Revenue estimates include digital and static billboard, street furniture, transit, and alternative OOH (which includes digital place-based video and cinema advertising).
For more information about specific category spend, please contact Nicole Randall at email@example.com or (202) 833-5566.
OAAA is the national trade association for the out of home (OOH) advertising industry. Founded in 1891, the association represents more than 90 percent of the US OOH industry based on revenues. OAAA is dedicated to leading and uniting a responsible OOH industry committed to serving advertisers, consumers, and communities. The OOH industry generates $7.6 billion annually in ad revenues and donates more than $500 million in space each year. For more information, please visit www.oaaa.org.
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