Out-of-home advertising lifted by digital formats, an election year, and investment in transit

Compared with other traditional media channels, out-of-home (OOH) is resilient. US OOH ad spend will grow 5.2% this year, per our March 2024 forecast, significantly more than TV, radio, and print, which will mainly see declining figures over the next few years.

“[OOH] is being integrated into the bigger advertising ecosystem,” our analyst Yory Wurmser said on an episode of “Behind the Numbers” podcast. “It's less siloed than it used to be, in part because it's becoming more programmatic and data-driven.”

Here are three factors fueling OOH advertising, now worth $9.19 billion in the US.

1. OOH’s digital impact is expanding

“The bulk of [OOH’s] growth is coming from digital channels and expansion,” Wurmser said.

Currently, only 15% of OOH inventory is digital, Alison Broback, chief client officer and partner at ODN, told Wurmser for our Out-of-Home Forecast and Trends 2024 report.

• Despite digital’s small share of inventory, it will still account for more than a third (34.8%) of total OOH ad spend in the US this year, per our March 2024 forecast.
• Programmatic will pass a milestone this year, surpassing more than a quarter (26.4%) of digital OOH ad spend, per our June 2024 forecast.
• All OOH formats are benefitting from enhanced audience metrics based on location data.

“Because they cost more, digital screens are only going to be put where there is reliably high traffic, such as Times Square, or in busy elevators or airports,” Wurmser said. Still, we can expect more digital screens, “and as a result, we’re going to see a lot more programmatic advertising and better integration of data.”

2. Political ad spend gives local OOH a boost

OOH always gets a bump during election years, Wurmser said. Traditional OOH, in particular, will see a 2.2% YoY growth in the US, per our forecast, thanks to increased political ad spend.

• US House and Senate race OOH ad spend in the first half of 2024 quadrupled from 2020, according to August 2024 data by the Out of Home Advertising Association of America (OAAA).
• "Political ad spend in OOH is at the highest levels ever because of our ability to deliver location-based targeting, and OOH’s resonance with younger and multicultural audiences,” said OAAA’s president and CEO Anna Bager.
• State and local elections are driving most political OOH ad revenues, rather than federal elections, which are more expensive.

3. Advertisers are reaching commuters and travelers

“More people are traveling, going through airports, and commuting, contributing to a pretty strong growth in transit-based OOH,” Wurmser said.

• In Q1 2024, transit was the fastest-growing OOH category, growing 18.8%, per the OAAA.
• In the same quarter, transit OOH ad spend reached $311 million, accounting for 16.0% of all US OOH ad spend.
• Transit is the second-biggest OOH format after billboards.

Listen to the full episode.

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