NOTE: WE’RE CONTINUING TO SEE A DECLINE IN LOCAL ADVERTISERS USING BILLBOARDS. CLIENTS ARE NOT BUYING/ RENEWING BILLBOARDS BECAUSE BILLBOARDS ARE LESS LIQUID, i.e. THEY REQUIRE LONGER TERM COMMITMENTS AND ARE NOT EASILY CANCELLABLE. MOST CLIENTS DO NOT YET UNDERSTAND THE NEW DIGITAL BOARDS AND HOW TO USE THEM. WHEN CLIENTS UNDERSTAND DIGITAL AND THERE ARE MORE BOARDS, OUTDOOR WILL REBOUND. IN THE MEANTIME, WE ARE ABLE TO GET CLIENTS GREAT DEALS ON BILLBOARDS RIGHT NOW, THAT MAY NOT BE THERE IN THE FUTURE AND CERTAINLY WEREN’T THERE IN THE PAST.-DP
Outdoor Advertising Tumbles 15% in Q4 08
Outdoor advertising revenue slipped 15% in the fourth quarter of 2008, to $1.5 billion; for the year, outdoor revenue sank 4%, to $7 billion, according to figures from the Outdoor Advertising Association of America.
The coming year looks grim, considering the fact that local advertising, the medium’s lifeblood, is expected by BIA Advisory Services to slide 1.4% a year through 2013, writes MediaPost. Growth of new digital platforms – the infrastructure of the digital signage business is expected to grow 33% this year, for example – should mitigate the slide somewhat. PQ Media forecasts that digital OOH spending in the U.S. will grow at a compound annual rate of 12.9% from 2007 to 2012. The U.S. accounts for nearly 40% of global digital OOH spending, but its share will decline over the next several years.
Digital out-of-home spending grew 24.5% in 2007 over 2006, and represented about 30% of all out-of-home revenue – double its 15% share in 2002.
The out-of-home advertising industry performed better than most traditional ad segments in 2008, Stephen Freitas, chief marketing officer for the OAAA, is quoted as saying.He says that the industry is well-positioned for the new year, despite the recession. “Advertisers are looking for ways to reach highly mobile consumers, and out-of-home provides the most effective and cost-efficient way to do so.”
For the fourth quarter, outdoor’s performance – at minus 15% – was worse even than radio, which fell 11%. But for the year, radio dropped 9%, compared to a 4% drop for outdoor.