U.S. outdoor and out-of-home ad sector has managed to log gains amid a weak ad revenue environment, competition from online/digital and traditional ad delivery mediums attributed to the sector's continued focus on digital-based products. We project the sector's ad revenues will likely increase 5.1% year-over-year in 2019.
Click here (client-only access) to read the full report by Kagan, a media research group within S&P Global Market Intelligence. The report includes a breakdown of digital and traditional outdoor and out-of-home display ad revenues as well as local and national ad revenues. The report also includes local ad revenues broken out on a market-by-market basis.
However, the mid-single-digit revenue growth might be short-lived as a probable economic slowdown could weigh on the sector's future revenue trend path owing to its sensitivity to U.S. GDP growth. Additionally, the sector will be cycling against tougher year-over-year comparisons.
Although digital signage has been around for quite a while, it is increasing in importance for the industry as new units are rolled out every month thanks to aggressive digital expenditure. Ad space providers intend to capitalize on the ability of digital displays to offer products for both local and national advertisers. National clients are able to run ad campaigns across many markets by networking the medium.
OUTFRONT Media Inc., Lamar Advertising Co. (REIT) and Clear Channel Outdoor Holdings Inc. have been pursuing aggressive strategies to roll out new digital billboards to capitalize on the medium's built-in efficiency and ability to attract prospective advertisers. Given that supply is limited amid tough regulations on building new digital units, the public outdoor operators have relied on smaller tuck-in acquisitions in the past, coupled with a strategy to convert existing static billboards into digital units.
Learn more about Market IntelligenceRequest Demo
Outdoor sector competitive landscape: Lamar gains on M&A
Outdoor digital inventory: M&A, rollout plans in focus