OOH posted its highest quarterly ad revenue growth since 2007 with an increase of 7.7 percent in the second quarter of 2019 compared to the previous year, accounting for $2.69 billion, based on figures released today by OAAA. Year-to-date 2019 the OOH industry is up 7.0 percent. OOH’s quarterly performance more than tripled US second quarter GDP growth.
The strong quarterly increase occurred across all four major OOH channels: billboards, street furniture, transit, and place-based. Digital OOH posted the highest growth across all formats, representing 31 percent of total OOH revenue in the second quarter.
Among the top 10 revenue categories, six outperformed national GDP growth in the second quarter, including Miscellaneous Local Services and Amusements; Retail; Media and Advertising; Public Transportation, Hotels and Resorts; Insurance and Real Estate; and Automotive Dealers and Services.
Ranked in order of OOH spending, the top 10 advertisers in the second quarter were McDonald’s, Geico, Apple, State Farm, Chevrolet, Amazon, Facebook, Anheuser-Busch, AT&T, and HBO.
Almost 70 percent of the top 100 OOH advertisers increased spend over Q2 2018, and one-quarter of them more than doubled OOH investment. Over one-quarter of the top 100 were tech brands including the entire FAANG suite of companies – Facebook, Apple, Amazon, Netflix, and Google.
OOH’s ability to deliver mass reach and maintain audience is a significant competitive strength, and has been a significant driver of the sustained growth over 37 consecutive quarters. OAAA-sponsored marketing research continues to highlight OOH’s capacity to engage consumers in the real world where they live, work and play. Nielsen found 66 percent of US travelers report taking an action on their smartphone after exposure to an OOH ad. The same study also reported OOH viewers are younger and more affluent than the US population, making them an attractive audience for advertisers.
Source: Kantar, OAAA, Nielsen