Out-of-home Advertising - Overview

Overview

Billboard advertising is a traditional out of home advertising format, but there has been significant growth in digital out of home advertising (billboards and place-based networks) in recent years; for example, about 1,500 digital billboard displays have been installed in the United States alone.

Traditional roadside billboards remain the predominant form of outdoor advertising in the US with 66 percent of total annual revenue. Today, billboard revenue is 73 percent local ads, 18 percent national ads, and 9 percent public service ads.

Street furniture is made up of formats such as bus shelters, newsracks, mall kiosks, and telephone booth advertising. This form of outdoor advertising is mainly seen in urban centers. Additionally, this form of advertising provides benefits to communities, as street furniture companies are often responsible for building and maintaining the shelters people use while waiting for the bus.

Transit advertising is typically advertising placed on anything which moves, such as buses, subway advertising, truckside, and taxis, but also includes fixed static and electronic advertising at train and bus stations and platforms. Airport advertising, which helps businesses address an audience while traveling, is also included in this category. Municipalities often accept this form of advertising, as it provides revenue to city and port authorities.

Finally, alternative advertising includes ads in stadiums, on gas pumps, bike racks, rest areas, and other non-traditional formats. Alternative advertising provides a way to address consumers in places they may not expect.

Street furniture, transit, and alternative media formats comprise 34 percent of total outdoor revenue in the US. Some of these formats have a higher percentage of national ads than traditional billboards.

The outdoor industry includes more than 2,100 operators in 50 states representing the four major outdoor format categories. These outdoor media companies range from public, multinational media corporations to small, independent, family-owned businesses.