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Out-of-home advertising falls 17% in Q3
December 16, 2009
The total out-of-home advertising market fell 17 percent in the third quarter of 2009 compared with the same period in 2008, according to new data from the Outdoor Advertising Association of America (OAAA). Total revenue in the United States for the out-of-home advertising industry was $1.3 billion in Q3, which is just slightly less that of the first and second quarters this year. According toMarketingcharts.com, this could indicate stabilization in the outdoor advertising market.
The OAAA also released data indicating that every one of the top 10 outdoor advertising categories was down in the third quarter compared to 2008.
Digital out-of-home is still projected to grow, however. Last month, BIA/Kelsey released a report that predicted a 13.5-percent annual growth rate for the industry, from $2.2 billion in 2009 to $3.7 billion in 2013. This outperforms traditional out-of-home advertising's expected 1.4-percent growth rate (from $4.4 billion to $4.6 billion).
But experts say that for DOOH to achieve its full potential within the traditional OOH market, it needs to be easier to buy. Right now, the medium isn't consolidated, and multiple networks make it difficult for ad buyers to run large campaigns.
"DOOH must get easier to plan, buy and measure in order to reach scale," said Rick Ducey, chief strategy officer of BIA/Kelsey, in the November release. "With consolidation, partnerships and interoperable platforms, we see the buying process becoming more integrated, which will spur growth."
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