by Erik Sass, Monday, August 26, 2013
Out-of-home advertising revenues increased 5% from around $2.1 billion in the second quarter of 2012 to just under $2.2 billion in the second quarter of 2013, according to the latest figures from the Outdoor Advertising Association of America.
This marks the 13th straight quarter of growth for out-of-home, which has posted steady year-over-year increases since the second quarter of 2010.
Top OOH growth categories in the second quarter included miscellaneous services, restaurants and retail, while the list of top advertisers spanned categories from luxury to fast food, including Diageo, StubHub, Jack in the Box, Chipotle, 7 Eleven, Apple Stores, Netflix, Tiffany and Chanel.
In the first quarter of the year, outdoor ad revenues increased 4.5% from $1.4 billion to $1.5 billion, for total revenues of $3.7 billion in the first half of the year. That’s a slightly faster pace than the overall growth rate of 4.2% in 2012, when the OAAA tallied total annual revenues at $6.7 billion.
The out-of-home advertising business continues to benefit from a number of trends, including the rise of digital out-of-home, which allows out-of-home advertisers to display multiple messages, sell outdoor inventory by dayparts, and integrate mobile to boost engagement and measure the impact of outdoor ads more precisely.
Major changes are also afoot in the out-of-home business, including CBS Outdoor’s plans to convert the company into a Real Estate Investment Trust -- an idea now being considered by Lamar Advertising. New competitors are trying to break into established markets, with Titan Air taking on incumbents Clear Channel Airports and JC Decaux.