What is the story about?
What's Happening?
The US out-of-home (OOH) advertising industry is experiencing a significant shift towards digital transformation, as evidenced by recent revenue figures from the Out of Home Advertising Association of America (OAAA). In the second quarter of 2025, OOH advertising revenue increased by 3%, reaching $2.86 billion, marking 17 consecutive quarters of growth. However, this growth is marginal when considering the 2.4% inflation rate and the 5% increase in US nominal GDP for the same period. The digital out-of-home (DOOH) segment is driving this upward trajectory, accounting for 36% of Q2 revenue and surging by 9.2% year-over-year. This growth is attracting advertisers from technology and direct-to-consumer sectors, who are integrating DOOH into sophisticated, omnichannel strategies.
Why It's Important?
The shift towards digital transformation in the OOH industry is crucial for maintaining competitiveness in the advertising landscape. As digital advertising grows by 5.2% in Q2, OOH's share of total ad spend may decrease if it does not embrace digital strategies. The industry must confront challenges such as inflation and GDP growth to avoid being left behind by faster-growing sectors. The potential for growth is significant, as demonstrated by the Australian market, where digital screens generate 75% of total OOH revenue despite constituting only 20% of total screens. By adopting similar strategies, the US OOH industry can unlock new growth opportunities and enhance its market share.
What's Next?
To capitalize on the digital opportunity, the US OOH industry must focus on strategic monetization of digital screens and embrace programmatic buying and independent verification. By learning from mature digital markets like Australia, the industry can elevate the value of digital screens and drive real, market-leading growth. This requires a shift from resilience to strategic expansion, ensuring that OOH revenue growth consistently outpaces inflation and GDP.
Beyond the Headlines
The transformation of the OOH industry is not just about technological advancement but also about redefining how advertisers engage with consumers. The integration of DOOH into omnichannel strategies reflects a broader trend towards data-driven marketing ecosystems. This shift has ethical and cultural implications, as it changes the way brands communicate with audiences and measure the effectiveness of their campaigns.
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