Consumers are actively seeking ways to avoid advertising, often using ad-blocking technology on their mobile devices and ad skipping software on DVRs. Marketers are turning to out-of-home advertising to be sure they reach consumers. According to PQ Media, out-of-home media space providers earned $39.23 billion in 2016. OOH media companies can anticipate a strong 2017 as well.
OOH grew by over 6.2% last year because of several key events in the U.S. In particular, marketers associated with the Summer Olympics, and with the recent election cycle, significantly boosted their ad spending on OOH. Analysts point out that marketers also upped their use of cinema advertising, which is included in the OOH calculations.
The U.S. OOH market is now valued at about $9 billion. The market consists of the rapidly growing digital out-of-home sector which grew about 12.6% last year. DOOH now accounts for about 24% of the entire OOH market. Businesses are spending heavily on digital place-based networks. These DPNs are located in high-traffic areas like gas pumps, doctors’ offices and elevators. The other component of DOOH is made up of digital billboards and signage. These placements typically change messages every 30 seconds. Traditional OOH media formats range from static billboards to signs on objects, street furniture, taxis and buses.
PQ Media analysts point out that the average consumer is now exposed to 66 minutes of OOH messaging every week. This number is a 1.5% increase over the previous year’s level. As the economy continues to improve, and more consumers are out and about, working and spending money, marketers will increase their spending on OOH placements.
Going forward, analysts expect stronger growth in the traditional transit category, because these placements aren’t subject to the same kinds of regulations that aim to restrict billboard growth. DOOH placements will become increasingly attractive to marketers when they are paired with informational messaging, for example, displaying scores for widely following sporting events.
PQ Media President & CEO Patrick Quinn points out that OOH remains strong because it allows marketers to ‘engage target consumers near the point of decision.’ The research shop estimates that OOH will grow 6.2% in 2017. Media sales reps should remind clients to make OOH part of their marketing strategy.