Out of home (OOH) advertising revenue rose 1.2 percent in 2017 compared to the previous year, accounting for $7.7 billion, based on figures released by the Outdoor Advertising Association of America (OAAA). OOH spend was up 1.1 percent in the fourth quarter, compared to 2016. The revenue total marks a record all-time high for OOH with 31 consecutive quarters of growth since the recession.
“OOH continues to set record revenues in an age of unprecedented levels of digital ad spend, said OAAA President & CEO Nancy Fletcher. “OOH is growing because it complements digital media by priming search, mobile and social engagement.”
Among the top revenue categories, those with the greatest growth increase in 2017 included Financial +8.8%; Miscellaneous Local Services & Amusements +5.8 percent; Media & Advertising +3.4%; Government, Politics and Organizations +2.7 percent; and Restaurants +0.3%.
Ranked in order of OOH spending, the top 10 advertisers in 2017 were McDonalds, Apple, Geico, American Express, Google, Amazon, Coca-Cola, HBO, Verizon, and Chevrolet. McDonalds and Apple retained the top two positions for the fifth consecutive year.
Of the top 100 OOH advertisers in 2017, almost one-quarter were from the technology sector, and a dozen advertisers more than doubled their OOH investment in 2017. This list included Barclays, General Motors, Google, Hilton Hotels and Resorts, Hyundai, Katy Perry, Mattress Firm Store, Nissan, Progressive, Toyota, Volkswagen and Zoom Communications.
“OOH’s strength in driving online activation is underscored by the heavy investment of today’s top tech brands in OOH,” said Stephen Freitas, OAAA chief marketing officer. “Three of the top ten spenders in OOH are Apple, Google and Amazon, and OOH’s ability to enhance the effectiveness of digital media investments continues to drive growth.”
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).