Behind OOH’s Strong Third Quarter
Spending Rises 4.3 percent, well ahead of other traditional media
Out of home ad spending appears to be immune to many of the problems dogging other traditional media of late.
While newspapers, magazines, radio and even now television are struggling to hold onto advertising dollars, OOH revenue is going up.
That continued in the third quarter when advertising spending increased by 4.3 per cent over last year, according to the Outdoor Advertising Association of America. Spending hit $1.71 billion and it marked the medium’s 22nd straight quarter growth. By contrast, Kantar media estimates overall ad spending was down by about 4 percent in the third quarter.
There are three main reasons for OOH’s continued health compared to other traditional media. The first, and mot notable, is that unlike print and broadcast, OOH is not seeing advertisers flee to digital. Standard Media Index, which tracks ad spending on the part of 80 per cent of U.S. agencies, notes that the impact of digital on OOH has been minimal. Most advertisers are not shifting budgets out of OOH to the web. Instead they’re taking that money from other traditional media. According to SMI data for October, OOH barely saw any shift in its budget in the top six ad categories compared to last year. whereas radio for instance saw a decline in nearly every category. And newspapers were off 11 percent in retail alone.
Another Key to OOH’s continued growth has been its ability to integrate neatly with the hottest thing in advertising, mobile. Advertisers can add mobile components to their campaign easily through Bluetooth or QR codes.
Finally, top ad categories increased their OOH spending in the third quarter. Retail, the No. 2 category was up 10 per cent, to 16.4 million, the biggest growth for any top-10 category. The No.1 ( miscellaneous services and amusements) and No 3 (media and advertising) categories were also both up at least 7 percent from last year.
By Bill Cromwell – MEDIA LIFE Magazine