Outdoor Ads Grow As Digital Signs Stall

• Posted: Monday, March 19, 2007
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• Author: pradhana
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• Filed under: Ad Spending, Advertising, Market Survey

US out-of-home ad revenues rose to $6.8 billion in 2006, up from $6.3 billion in 2005, according to the Outdoor Advertising Association of America (OAAA).

The strongest out-of-home ad categories were insurance/real estate and communications, each of which grew 26%. Out-of-home revenues have been growing since 2002, when they totaled $5.2 billion.

One downside to the industry is in digital signage. This technology lets multiple ads run on a single billboard, and can be sold at different rates at different times of day. Rush hour ads can therefore bring in more than those shown in the middle of the night.

There are about 400 signs so far in the US. They cost about $500,000 each. The problem is that some city governments think they are too distracting, and have enacted temporary freezes on the signs in the name of safety. [eMarketer]

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