Outdoor revenue is recovering, albeit slower than other traditional media that have enjoyed double-digit rebounds. In first quarter, ad spending in out-of-home was down 0.7 percent to $1.3 billion, according to figures released Wednesday (May 19) by the Outdoor Advertising Associating of America.
Since the third quarter, revenue performance has been improving, leading Nancy Fletcher, CEO of the OAAA to conclude that the worst of the recession is over.
Of the industry’s top 10 categories, only four showed declines. Automotive dealers and services, a category that has returned to TV and radio, spent 14.6 percent less in out-of-home during the quarter.
Ad categories showing the most growth were media, up 12.9 percent to $109.4 million and government politics and organizations, up 21.9 percent to $$71.2 million.
Outdoor tends to lag other media going into recessions and in recovery, according to Marcy Ryvicker, an analyst with Wells Fargo, who is forecasting OOH to grow 4 percent this year.
The OAAA’s forecast includes billboards, street furniture, transit and alternative OOH formats. Estimates are based on data from several sources including Miller Kaplan, Kantar Media, member company affidavits, and syndicated research.