The Resilience of Out-of-Home Advertising: Insights from Mark Boidman at the IBO Conference ​

The Resilience of Out-of-Home Advertising: Insights from Mark Boidman at the IBO Conference

Out-of-home advertising has proven to be a resilient form of advertising even during economic downturns. This was highlighted by Mark Boidman, Solomon Partners‘ Global Media Group Head, during his speech at the recent IBO conference in Houston.

Boidman noted that longer-term leases with low fixed rents and portfolios with many long-performing leases were key factors that M&A firms look for in out-of-home advertising assets. He also advised that now is an excellent time for buyers to invest in assets, as public multiples may decrease temporarily, but they will likely rebound in the future.

These comments by Boidman reflect the overall sentiment among industry experts who believe that out-of-home advertising is not only robust but can also thrive during tough economic times. Out-of-Home advertising has been shown to be relatively recession-proof compared to other advertising mediums. During an economic downturn, media companies tend to decrease their ad spend, leading to a decrease in demand for advertising space. However, out-of-home advertising can still reach consumers who are out and about, even during a recession, making it a valuable option for advertisers looking to maintain their presence in the market.

Another reason why out-of-home advertising has proven to be resilient is its adaptability. It can adapt to changing consumer behavior and technological advancements, such as the rise of smartphones and social media. For instance, some DOOH campaigns now use facial recognition technology to deliver personalized advertisements to consumers in real-time.

Out-of-home advertising is a robust and adaptable industry that has proven its resilience during economic downturns. With the right investment strategy, it can provide excellent returns for buyers, especially during times when public multiples are low. As Boidman said, “We do see public multiples coming down, but we do think they will come right back up.”