Dive Brief:
- Outdoor advertising saw the highest quarterly revenue growth in a dozen years during Q2 2019, according to a new study from trade body the Out of Home Advertising Association of America (OAAA). Revenue for the channel rose 7.7% year-over-year to $2.69 billion during the quarter.
- Year-to-date growth for out-of-home (OOH) ad revenue reached 7% thanks to strong performance across the four channels measured by the OAAA: billboards, street furniture signs, transit signs and place-based signs. The highest increases across all channels was in digital OOH (DOOH), which accounted for nearly one-third of total OOH revenue in Q2.
- Seventy percent of the top 100 OOH advertisers boosted their spending compared to the same quarter last year, with one-quarter of those advertisers more than doubling their investments. The top 10 OOH advertisers in Q2 were McDonald's, Geico, Apple, State Farm, Chevrolet, Amazon, Facebook, Anheuser-Busch, AT&T and HBO.
Dive Insight:
OOH's renaissance, spurred by innovations in digital and mobile technology and higher spending from top digital brands like Facebook, Apple and Amazon, continued apace in Q2, with revenue reaching its highest peak since 2007 — the period right before the Great Recession.
A key factor in the growth of OOH is the adoption of digital signage, which brings a variety of advantages over static media placements. On top of different ad serving technology, including programmatic bidding capabilities, digital outdoor signage can adjust more dynamically based on elements like daypart, mobile location data and weather.
These factors helped to make out-of-home ads one of the more powerful marketing tools for getting shoppers into physical stores, according to a recent study by brand intelligence firm Cuebiq. More companies are trying to capitalize on marketers' growing investments in leading-edge outdoor offerings.
Verizon Media introduced DOOH inventory for its demand-side platform in April. AdQuick launched what it claims is the first cost-per-engagement model for OOH last month, with ordering app Ritual as a pilot brand.
Better location-based mobile technology is another area of OOH attracting brand interest. Earlier this month, footwear brand Pump launched a geo-targeted campaign where ads were programmatically delivered to screens on taxis and ride-share vehicles. Motion graphics appeared when the vehicles were in geofenced areas, such as major airports or tourist attractions, and when traffic conditions made viewing more feasible, with the intention of driving awareness of the opening of a new flagship store on New York City's Fifth Avenue.
Localized messaging has been another theme. In July, Kraft Heinz lemonade brand Country Time ran customized outdoor ads that challenged regional regulations against lemonade stands. Kylie Jenner's skin care in May worked with ad platform Adomni on an OOH push that targeted consumers by audience segment versus factors like neighborhoods, drawing data from participating apps on mobile devices carried by passersby.
