Tap Into the Expanding Out of Home Advertising Market

Out of home (OOH) advertising, which includes just about all advertising except direct mail, television and radio, and Internet platforms, continues to demonstrate great strength. The OOH industry has seen revenue grow over the last 17 consecutive quarters, outperforming all other media except television and Internet, reported Stephen Freitas, chief marketing officer for the Outdoor Advertising Association of America (OAAA), the national trade association for the out of home advertising industry.

OOH advertising revenue rose 0.8 percent in the second quarter of 2014 compared to the previous year, accounting for $2.17 billion, according to the OAAA.

Among the top 10 revenue categories, those with the greatest growth increase included retail (19 percent); insurance and real estate (13 percent) government, politics, and organizations (11 percent); media and advertising (8 percent); miscellaneous services and amusements (5 percent); automotive dealers and services (5 percent); and public transportation, hotels & resorts (3 percent).

“When you look at the top brands using OOH, it’s clear the medium connects well with millennials – today’s young, mobile consumers,” Freitas added. “Research shows consumers find OOH one of the most memorable forms of advertising, which is a reason why it drives sales and builds brands.”

That’s also why some of the largest brands look to OOH. The top 10 OOH advertisers in the first quarter of 2014 were McDonald’s Restaurant, Apple, Warner Brothers, Geico, Metro PCS, Verizon, AT&T, 20th Century Fox Pictures, Coca-Cola, and Chase, according to the OAAA.

“The world’s top advertisers use OOH because of its ability to target and engage with consumers while away from home, where they spend 70% of their day,” Freitas added. “However, local advertisers still make up the greatest share of brands that use the medium. OOH’s powerful mix of formats and locations help local businesses and national brands reach consumers on the path to purchase.”

Those looking to expand or enter the market should aim to provide time-sensitive messaging and increase two-way engagement with consumers by providing a way to interact with the advertisement campaign.

“In general, our customers are looking to create a memorable experience – that’s what ultimately drives brand recognition,” said Allie McAlpin, Lamar Advertising’s communications director & web manager. The company is one of the nation’s leading out-of-home advertising providers, with outdoor advertising space in the US, Canada, and Puerto Rico. Its products are located in both rural and urban settings— you’ll see its inventory when you’re driving down the interstate or walking through Times Square.

“Whether we're working with a small business owner who is advertising for the first time, or an experienced media planner looking for ways to complement their client’s media campaign, we have a variety of products and services to help advertisers reach their goals and stand out from the competition,” said McAlpin. “Our focus is on the customer experience, and we work closely with our clients to deliver results that meet or exceed their expectations. “

Lamar offers advertisers a full range of out-of-home media formats including: billboards (bulletins, posters, Jr. posters, wallscapes), digital billboards, and transit (bus, rail, shelter, bench, station, and airport).

OOH campaigns allow today’s consumers the personal and connected experiences and two-way interactions they seek, especially with brands, “Smartphones are a direct link to OOH search, social media, downloads, and transactions,” Freitas explained. “Emerging technologies like location-specific targeting and augmented reality continues to transform these opportunities.”


The continuous expansion of digital platforms across OOH formats further enhances the ways in which OOH efficiently delivers the advertisers’ message to the consumer in today’s increasingly fragmented media environment.

“The digital signage sector is one that is of great interest to our sign companies,” said Glenn Feder, director, Business Development for the International Sign Association.

A recent survey of sign companies attending the ISA International Sign Expo revealed that 43 percent of sign companies' existing customers are asking about digital signage solutions. They also shared that they had completed an average of 12 digital signage projects over the past year and expect that number to grow over the next 12 months.

Digital signage is not necessarily replacing traditional signage—it is instead a compliment to it. There is an opportunity, especially in the small/medium business (SMB) sector, for sign companies to add this service/solution to their mix of offerings.

“Many of the sign companies already have graphic design and branding skill sets in-house so it's a matter of simply applying that to the digital platforms,” said Feder. “They also have the relationships with the end users so there is some need for more consultative sales training to position their staff to address this, somewhat more sophisticated sale. Beyond that, they really need to understand their business and what aspects of the digital signage sector they want to pursue and from there will need to understand which partners are out there to best help them make this move.”

Businesses are using digital out-of-home to complement their social and mobile marketing efforts and drive consumer engagement, agreed Ian Dallimore, Lamar Advertising Innovation & Digital Strategy. “Advertisers are also adding interactive elements to OOH campaigns. NFC and QR code based digital advertisements are popular because they enable consumers to connect and transact with brands. Those campaigns are suited for kiosks, bus shelters, airports, and transit stations where a consumer can access the display and interact with the content. Brands are also incorporating 3D elements and pop-out embellishments to stand out.”

In general, B2C companies tend to use digital out-of-home and NFC/QR based advertisements because they attract so much attention from consumers. Our digital billboards are growing in demand, especially among CPGs, retail, and grocery businesses.

Lamar continues to invest in our network of digital billboards. In 2001, the company launched its first digital display in Baton Rouge. Today, it has more than 2,000 digital billboards nationwide. It also expanded its digital team to provide additional support for customers and started producing custom 3D objects at its Baton Rouge printing facility last year. It has also partnered with companies such as Blue Bite, a leading mobile-marketing solutions provider focusing on connecting mobile users to physical touchpoints, in order to offer its advertiser clients additional options and value for their campaigns.

Some of Lamar’s more interesting OOH projects include:

• Highmark recently transformed one of its bus shelters in Pittsburgh into a mini football stadium for Steelers fans. There was an interactive bonus for consumers: select pictures taken inside the shelter also appeared on Lamar’s digital billboard near the stadium.
• A 3D billboard in West Little Rock, Arkansas for the Vondran Orthodontics campaign features a row of 3D teeth and braces with reflectors to increase visibility during the day. At night, LED lights positioned behind the teeth glowed, making the billboard fully visible at all times.
• MillerCoors promoted Miller Lite on its bulletin billboards in Laredo, TX during footfall season. The design included 3D pop out extensions to make the brand really stand out.
• Lamar brought Tulsa's first-ever photo-interactive digital billboard campaign to life for Guthrie Green this fall. The campaign combined social media and digital out-of-home to provide an integrated consumer experience. Select photos taken at the park and shared on social media with the hashtag #GuthrieGreen appeared on digital billboards in Tulsa, Oklahoma.


3D billboards are always popular and eye catching, notes Freitas, showing OOH’s unlimited creative potential. “This follows a trend among brands to excite consumers with arresting design,” he said. “OOH is an ideal canvas for big ideas.”

The good news for graphic arts providers is print is still very much a viable technology in OOH.

“The vast majority of OOH locations remain static displays,” said Freitas . “They require high-quality, large-format prints. With most consumers never leaving home without a smartphone, printed OOH can be just as innovative as digital OOH, providing key triggers for identifying website addresses to visit, or transactions to complete.”