Out-of-Home Advertising: Second Quarter 2023 Marks Historic Growth

 Out-of-Home Advertising: Second Quarter 2023 Marks Historic Growth

In the second quarter of 2023, the Out of Home (OOH) advertising industry had a 2.2% boost in revenue, reaching $2.68 billion, as reported by the Out of Home Advertising Association of America (OAAA). This is the second-highest quarterly revenue in OOH history. Digital OOH advertising, which makes up more than a third of the sales, grew by a significant 12.9% compared to the previous year. The Transit category saw the most substantial growth, increasing by 7.7% from the same period in 2022.

The OOH advertising industry is thriving, particularly in the “experience economy,” with travel experiencing significant growth. While other traditional media are declining, the OOH industry is expected to grow by 4.2% this year, according to MAGNA.

Notably, six of the top 10 OOH product categories performed better than the overall 2.2% quarterly growth. Legal Services (46.4%), Domestic Hotels & Resorts (29.0%), Colleges & Universities (20.2%), Local Government (14.7%), Hospitals, Clinics & Medical Centers (10.7%), and Consumer Banking (9.3%) all had substantial increases in OOH advertising.

The top 10 advertisers in the second quarter were Apple, McDonald’s, Coors, Verizon, Disney, Amazon, T-Mobile, Max, Coca-Cola, and Dunkin’.

Among the top 100 OOH advertisers, a significant majority (77%) increased their OOH spending compared to the second quarter of 2022. More than a third of these advertisers (37%) more than doubled their OOH spending. Thirteen advertisers increased their OOH spending by more than ten times.

Additionally, nearly a quarter (24%) of the top 100 OOH spenders were technology or direct-to-consumer brands, including Apple, Verizon, Amazon, T-Mobile, Max, Google, Uber, VRBO, Hotels.com, Nintendo, and Expedia, which ranked among the top 25 spenders. The OAAA’s revenue estimates cover various OOH advertising formats, including digital and static billboards, street furniture, transit, place-based, and cinema advertising.