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Out of Home

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Eye-catching and bold, out-of-home (OOH) advertising was one of the earliest forms of advertising and represents an excellent way for businesses to attract the attention of a mass audience.  The medium is particularly effective for local advertisers who want to build name recognition within the marketplace, but top national brands in telecommunications, finance, retail, real estate, and food services also rely heavily on this medium.

  • Out-Of-Home advertising rose 2% in Q1 2018
    • Accounts for $1.68 billion in ad sales.
    • marks eight years of consecutive growth for the industry.

(Source: Outdoor Advertising Association of America - 2018)

  • The greatest revenue growth was seen in the following categories:
    • Financial +8.8%
    • Miscellaneous Local Services and Amusements +5.8%
    • Media and Advertising +3.4%
    • Politics and Organizations +2.7%
    • Restaurants +0.3%

(Source: Outdoor Advertising Association of America – March 2018)

  • This huge category is divided into four sectors covering a wide array of advertising options listed here with the number of displays for each in 2017:
    • Billboard
      • Bulletins  (152,367)
      • Digital Billboards  (7,300 faces)
      • Posters  (154,291)
      • Junior Posters  (23,422)
      • Walls/Spectaculars  (4,029)
    • Street Furniture
      • Bus Shelters  (60,897 displays)
      • Urban Furniture  (32,122 displays)
        • Phone Kiosks
        • Bus Benches
        • News Stands
        • News Racks
        • Digital Urban Furniture (3,641)
    • Transit
      • Airports  (68,560)
      • Buses  (1.01 million)
      • Commuter Rail and Subway  (364,785)
      • Digital Transit (3,760)
      • Mobile Billboards  (1,200)
      • Truckside  (2,732 vehicles)
      • Taxis/Wrapped Vehicles  (46,194 vehicles)
    • Place-Based OOH
      • Cinema  (34,350)
      • Arenas and Stadiums  (1,352)
      • Digital Place-Based Networks  (1.2 million screens)
      • Interior Place-Based (C-stores, health clubs, restaurants, etc.)  (not available)
      • Exterior Place-Based (Airplanes, Ships, Resorts, etc.)  (not available)
      • Shopping Malls  (30,532 displays)

    (Source: Outdoor Advertising Association of America, 2017))

    • For many years out-of-home advertising garnered a minuscule share of total ad spending, around 1-2% of national/local media budgets.  Over the past 18 years, OOH media has seen impressive growth as digital and cinema advertising have accounted for a surge in spending.
    • According to the Outdoor Advertising Association of America (OAAA), industry revenue hit an all-time high in 2016 of $7.6 billion
    • How OOH spending is distributed:
      • Billboards – 67%
      • Transit Advertising – 18%
      • Place Based – 10%
      • Street Furniture – 4%

    (Source: Outdoor Advertising Association of America 2017)

    According to a 2018 Nielsen airport study, frequent flyers are very responsive to airport advertising:

    • 80% noticing the media
    • 42% taking acting including visiting a website, going to a store or learning more about the services/product. 

    Airport campaigns play a significant role in driving foot traffic:

    • 84% of frequest fliers likely to visit restaurant 
    • 50% likely to visit a clothing/accessories/jewelry store
    • 41% likely to visit a consumer electronics store

    More figures on airport advertising:

    • 74% of frequest fliers arrive at the airport over an hour before boarding
    • 67% dined at a restaurant
    • 79% shopped for food/beverages
    • 51% shopped for travel accessories/technology products/entertainment
    • 87% spend time on their mobile devices while waiting for their flight
    • 36% visted a website to find out more about a product/service seen in the airport

    (Source: Nielsen Airport Study 2018)

    • OOH industry growth and future success are predicated on a number of factors:
      • Mobile consumers who are outside their homes most of the day
      • Cost efficiency versus other media
      • Innovations (primarily digital) that bolster the value of OOH advertising
      • Less fragmented than many other media
      • Recent introduction of a new ratings system to facilitate buying

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