A recent forecast from PwC forecast US out-of-home (OOH) advertising revenues to grow at a compound annual rate of 5% between this year and 2017. New figures released by the Outdoor Advertising Association of America (OAAA) indicate that revenue growth is close to that pace, with spending up 4.5% year-over-year in Q1 to reach $1.5 billion. Retail advertisers increased their OOH investments most rapidly, by 12%, while the automotive sector upped spending by 8% year-over-year to crack the top 10 categories for the first time in 3 years.
The Miscellaneous Services and Amusements category (which consists mainly of local brands) remained the largest spender, at 19.1% of total revenue. Retail (9.4%), media and advertising (9%) and restaurants (8.1%) were the next-largest spending categories, although their spending patterns moved in opposite directions. The media and advertising sector cut back spending by 10% year-over-year, while retail and restaurants (11.6%) were the 2 fastest-growing segments.
All told, the top 10 categories accounted for 80% of total OOH ad spending, or about $1.2 billion.
About the Data: OAAA issues full industry pro forma revenue estimates that include, but are not limited to, Miller Kaplan and Kantar Media (which is not adjusted to reflect changes in data sources), and member company affidavits. Revenue estimates include billboard, street furniture, transit, alternative, and cinema advertising, as well as digital platforms for advertising spending.