Out-of-home ad spend surpasses $9B, driven by digital growth

The news: Driven by the rapid expansion of digital out-of-home (DOOH) advertising, US out-of-home (OOH) advertising surpassed $9 billion for the first time last year, according to a new report by the Out of Home Advertising Association of America (OAAA).

In an EMARKETER interview, OAAA CEO Anna Bager discussed how DOOH’s continued growth, combined with programmatic capabilities and improved measurement tools, has made OOH an increasingly attractive option for major brands including Apple, McDonald's, Amazon, Disney, Google, and Nike. Additionally, pharmaceutical advertisers are shifting budgets from television to OOH as a viable marketing channel.

• OOH is evolving beyond awareness into performance marketing, with Bager emphasizing that it’s “probably the best medium, especially these days when there are really no other broadcast mediums left”, making it both a “fantastic brand-building mechanism” and an effective performance driver.
• Even digital-first brands see OOH’s value, as Bager pointed out that “advertisers are deciding to spend all their money on channels that predominantly use out-of-home for advertising”, highlighting how companies like Google continue to invest heavily in outdoor placements.

Why it’s growing: The OOH industry is evolving, undergoing a digital renaissance that creates new advertising opportunities. Digital screens allow multiple ads to rotate dynamically, providing flexibility that traditional static billboards lack.

• Programmatic DOOH is a key growth driver, projected to grow 23% this year after 34% growth in 2024, according to our forecast. Programmatic DOOH will reach $1.23 billion by 2026.
• According to our forecast, total US OOH ad spend is forecasted to hit $10.48 billion by 2028, with consistent growth ranging from 3% to 4.8% annually.

Why it matters:

• OOH’s effectiveness in consumer engagement is increasingly evident. Research shows 76% of consumers take action after seeing an OOH ad, with 73% favoring DOOH formats. Notably, outdoor advertising is one of the few formats not dependent on third-party data, making it attractive in an era of heightened privacy regulations.
• OOH advertising is a powerful social media amplifier; 47% of consumers search for social media handles featured on OOH ads, and 40% share related content online (see chart). This cross-channel integration makes OOH a critical element in modern omnichannel strategies.

Our take: OOH advertising is no longer just an awareness play.

• While it remains a powerful brand-building tool, its impact on performance marketing and digital amplification is becoming clearer.
• Major events like the Olympics and FIFA World Cup are pushing brands to secure premium OOH inventory well in advance, reinforcing its growing strategic importance.
• As measurement capabilities continue to improve and programmatic adoption expands, OOH is set to play a critical role in the advertising mix.