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Out of Home Ad Revenue Reaches Historic High in 2016
By OAAA Staff
March 8, 2016
WASHINGTON - March 9, 2017 - Out of home (OOH) advertising revenue rose 3.1% in 2016 compared to the previous year, accounting for $7.6 billion, based on figures released by the Outdoor Advertising Association of America (OAAA). OOH spending was up 2.7% in the fourth quarter, compared to 2015. The revenue total marks a record high for OOH with 27 consecutive quarters of growth since the recession.
"OOH has set record revenue levels for two consecutive years, and every OOH format grew in 2016," said OAAA President & CEO Nancy Fletcher. "OOH continues to grow alongside digital media, while most forms of traditional advertising struggle in today's audience-fragmented environment."
Among the top revenue categories, those with the greatest growth increase in 2016 included Miscellaneous Local Services & Amusements +9.2%; Automotive Dealers & Services +6.8%; Financial +5.5%; Restaurants +4.7%; Government, Politics and Organizations +3.8%; and Public Transportation, Hotels and Resorts +2.7%.
Ranked in order of OOH spending, the top 10 advertisers in 2016 were McDonalds, Apple, Verizon, Geico, Anheuser-Busch, Sprint, Coca-Cola, American Express, Warner Bros Pictures, and HBO. McDonalds and Apple retained the top two positions for the fourth consecutive year.
Of the top 100 OOH advertisers in 2016, 68 had increases in OOH spend equal or greater to the industry increase of 3.1%. Almost one-quarter were from the technology sector, and included Apple, Sprint, Comcast, Amazon, Facebook, Google, Lyft, Netflix, Cox Communications, Cylance, US Cellular, Uber, Boost Mobile, GrubHub.com, and Motorola. Facebook, which began spending in OOH in 2014, jumped to number 28 in 2016.
Among the top 100 OOH advertisers with the greatest spend increase for 2016 were Anheuser- Busch, American Express, Chevrolet, Marriott, Amazon, Facebook, Chevrolet Dealers Association, Capital One, Budweiser, New York State Gaming Commission, Cylance, Uber, Jim Beam, GrubHub.com, Deloitte & Touche, JP Morgan, and Motorola.
"The real, powerful advertising capacity of OOH continues to drive growth with its ability to connect with consumers through a diverse mix of formats," said Stephen Freitas, OAAA chief marketing officer. "OOH offers advertisers a unique value proposition with bold creative delivered in contextually relevant environments. These factors, along with the expansion of digital platforms, will continue to drive OOH growth in the coming years."
OAAA issues full industry pro forma revenue estimates that include, but are not limited to, Miller Kaplan Arase and Kantar Media (which is not adjusted to reflect changes in data sources), and member company affidavits. Revenue estimates include digital and static billboard, street furniture, transit, and alternative OOH (which includes digital place-based video and cinema advertising).
Proposal for Braintree Billboard Draws Opposition
The Patriot Ledger
By Fred Hanson
March 17, 2017
The state will hold a April 13 hearing on a proposal to construct an electronic billboard along Route 3 in Braintree.
Braintree, MA - The North Braintree Civic Association is planning to oppose a request to install electronic billboards adjacent to Route 3.
Clear Channel Outdoor has proposed the double-sided billboard on land adjacent to 131 Elm St. The land is located between the Elm Street bridge and the railroad underpass to the highway.
It is also the area where the tracks of the Greenbush line join those of the other two lines of the MBTA's Old Colony Line.
"We don't need to be Las Vegas," said Kelly Moore, the president of the North Braintree Civic Association.
He said the group has opposed the construction of electronic billboards along between Route 128 and Wood Road.
"It's another step towards being a city and we don't need that," said Moore.
The state's Office of Outdoor Advertising, part of the Massachusetts Department of Transportation, will hold a public meeting on the proposal at 11 a.m. April 13 in conference rooms 5 and 6 on the second floor of the Transportation Building, 10 Park Plaza in Boston.
The notice for the meeting did not include any details on the proposed billboards, such as their size and height. It also could not be determined Friday if town approval would also be needed.
Back in 2015, the town approved a zoning change which allows billboards along highways, providing they are at least 1,000 feet from residential areas.
Later that year, the planning board approved one application for a billboard along Wood Road. The billboard owner will pay the town $1.5 million over 25 years.
A second application in the same area was rejected and a third withdrawn.
Written comments on the proposal can be sent prior to the meeting to The Office of Outdoor Advertising; Attention: John Romano, director; 10 Park Plaza, Room 6141; Boston, MA 02116.
Media Executives Predict DOOH Advertising to Grow Faster Than Mobile and Video On Demand
Screen Media Daily
By Staff Writer
March 15, 2017
UNITED KINGDOM - Digital out-of-home (DOOH) advertising will grow faster than mobile and Video On Demand (VOD) over the next five years, according to a just released perception study of media professionals
by Ocean Group. The study polled 204 executives from both media agencies and outdoor specialists to gauge the role, prospects and challenges for DOOH advertising in the current media landscape.
More than 86% of study respondents identified DOOH advertising
as having the biggest growth potential over the next five years, putting the medium ahead of mobile (67.2%), Video on Demand (60.8%) and every other media channel. DOOH advertising also scored higher than any other media channel for offering dynamic (83%), exciting (69%), modern (82%), and versatile (67%) advertising environments.
Radio, Cinema, Magazine, Print and Traditional Out-of-Home channels were also included. Radio was though to be the most passive channel (54%), and Cinema was the most Glamorous (56%). Magazines were also considered Glamorous (49%), and Traditional Out-of-Home advertising was Powerful (57%).
"The emotional index in our study shows how far digital out-of-home advertising has moved from the being a standard, passive medium to a channel which is modern, exciting and sophisticated, driving mobile and online," said Richard Malton, Ocean Marketing Group Director. "This shift in positioning is driven by technology like audience recognition, wifi and broadcast capability, which allows us to introduce even better targeting, interactions, creativity and results. The introduction of new trading models is also driving flexibility and value as never before."
Additional findings include:
- DOOH advertising is consider the Number 1 medium and is predicted to have the biggest growth over the next 5 years
- DOOH advertising is perceived as a tech-driven medium, closely aligned with online and mobile. It's also described as the most innovative, creative and flexible medium in the market.
- DOOH Advertising is more sophisticated, exciting and inspiring, according to survey respondents and they differentiated DOOH from other competitive media channels
- Cost and flexibility were highlighted by survey respondents as issues that still needed to be addressed
"DOOH advertising needs to educate and prove to the industry it is audience, content and cost driven," said Malton. "Automated planning and trading environments like Signature's The Loop is a significant step towards achieving the necessary transparency and flexibility."