Record-breaking Q3 signals new horizons for out of home industry

November 21, 2024

Washington, DC — Out-of-home (OOH) advertising revenue increased 4.3% in the third quarter of 2024 compared to the previous year, accounting for $2.04 billion, based on figures released by the Out of Home Advertising Association of America (OAAA). This marks the highest third-quarter volume ever for OOH, placing year-to-date growth at 4.6%, building on a strong year of growth for the medium.

“We are excited to see another record-breaking quarter for OOH, underscoring its enduring relevance and effectiveness in today’s media landscape,” said Anna Bager, President and CEO, OAAA. “With digital OOH driving significant gains and urban formats reflecting return to office trends, we’re seeing OOH’s unique ability to adapt and thrive in changing environments. Increased investment from top brands and tech leaders across diverse industries further cement OOH’s position as a critical component of modern marketing strategies. As we look ahead, the industry’s momentum and broad-based growth signal exciting opportunities for advertisers to connect with audiences in impactful, innovative ways.”

Key findings for the third quarter are noted below.

Digital OOH Key Growth Driver

Digital OOH, which accounted for 33.2% of quarterly sales, increased 7.3% from a year ago.

Urban Formats Mirror Increased Return to Office Mandates

The Transit category generated the greatest growth compared to the third quarter of 2023, increasing by 8.3%, followed closely by Street Furniture at 7.3% growth.

OOH Growth Across Diverse Industries Reflects Broad Appeal

Four of the top ten product industries generated double-digit growth: Automotive Dealers & Services +18%, Retail +17.7%, Local Services & Amusements +13.4%, and Government, Politics & Organizations +11%.

Computer Software Leads Product Category Growth

With a remarkable 50% increase compared to the same period last year, the Computer Software category spearheaded the charge. Chain Food Stores & Supermarkets, Architects, Contractors & Engineers, and Legal Services also posted impressive double-digit growth compared to a year ago, growing 23.8%, 18.1%, and 17.7%, respectively.

The top 10 OOH product categories in volume for the third quarter were:

Legal Services
Hospitals, Clinics & Medical Centers
Consumer Banking
Domestic Hotels & Resorts
Quick Serve Restaurants
Local Government
Colleges & Universities
Chain Food Stores & Supermarkets
Computer Software
Architects, Contractors & Engineers

Record Political Media Spend Also Seen in OOH

OOH political spend increased 31.6% compared to the third quarter of the last presidential cycle in 2020. Campaigns for ballot issues, U.S. House and Senate races, and the presidential race all grew significantly, increasing 60.7%, 184.3%, and 4075.8%, respectively.

Top Brands Investing in OOH

Ranked in order of OOH spending, the top 10 advertisers in the third quarter were McDonald’s, Apple, Verizon, Amazon, Anheuser-Busch, Morgan & Morgan Attorneys, Heineken, Coca-Cola, Universal Pictures, and T-Mobile.

StackAdapt, which was number 11 on the top brands list, drove the Computer Software category growth with a quarterly increase of over $4.5 million in OOH spend.

“Digital out of home advertising continues to gain momentum as advertisers increasingly seek precision targeting and scalable solutions. Programmatic DOOH empowers brands to execute real-time, impactful campaigns that connect physical and digital experiences seamlessly,” said Greg Joseph, VP of Inventory Development at StackAdapt. “With advertisers recognizing its potential for driving measurable outcomes, DOOH has seen a surge in demand, highlighting its role as a critical component of modern marketing strategies.”

Among the top 100 OOH advertisers, over half increased their OOH spend from Q3 2023, and 17 more than doubled their spend including (listed by spend % increase): Party City, Smart & Final, Johnson & Johnson, Nestle, GlaxoSmithKline, Walmart, ABC, David Yurman, Nike, StackAdapt, Verizon, Total Wine & More, Meta, Sixt, Heineken, Max and 7-Eleven.

Technology and DTC Brand Adoption

Over one-fifth of the top 100 OOH spenders were technology or direct-to-consumer brands, including these eleven brands which finished among the top 30 (according to spend): Apple, Verizon, Amazon, T-Mobile, StackAdapt, Uber, Paramount+, Samsung, Netflix, Comcast, and Hulu.

OAAA issues full industry pro forma revenue estimates that include, but are not limited to, Miller Kaplan and MediaRadar/Vivvix (which is not adjusted to reflect changes in data sources), and member company affidavits. Cinema September data was not included in the quarterly analysis because it was unavailable from Vivvix. Revenue estimates include digital and static billboard, street furniture, transit, place-based, and cinema advertising.

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For more information about specific category spend, please contact Steve Nicklin at snicklin@oaaa.org or (202) 833-5566.

About the Out of Home Advertising Association of America (OAAA)

The Out of Home Advertising Association of America (OAAA) is the national trade association for the entire out of home (OOH) advertising industry. OAAA represents over 850 members, including leading media companies, advertisers, agencies, ad-tech providers, and suppliers. OOH media includes billboards, street furniture, transit, place-based media, and digital formats (DOOH) across every sector of the channel. OAAA is the unifying voice for the industry, the authoritative thought leader, and the passionate advocate for advancing OOH advertising in the United States. The legislative unit of OAAA advocates for the responsible growth of OOH with federal, state, and local governments. OAAA-member media companies donate over $500 million annually in public service advertising. Founded in 1891, OAAA is headquartered in Washington, DC, with offices in New York City. For more information, visit https://oaaa.org.

Media Contact

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cassady@purposenorthamerica.com

SOURCE: Out of Home Advertising Association of America (OAAA)

https://eznewswire.com/newsroom/out-of-home-advertising-posts-record-third-quarter-volume

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Record-breaking Q3 signals new horizons for out of home industry

by: TastyAd