What's Happening?
The Out of Home Advertising Association of America (OAAA) reported a 3% increase in U.S. out-of-home (OOH) advertising revenue for the second quarter of 2025, reaching $2.86 billion. This marks the 17th consecutive quarter of growth for the industry. However, the growth rate slightly exceeds the 2.4% inflation rate, indicating marginal real growth. The digital out-of-home (DOOH) segment is a significant driver, accounting for 36% of Q2 revenue and showing a 9.2% year-over-year increase. This growth is attracting advertisers from technology and direct-to-consumer sectors, who are integrating DOOH into their omnichannel strategies.
Why It's Important?
The growth in the OOH industry, particularly in the DOOH segment, highlights the potential for digital transformation in advertising. Despite the positive revenue figures, the growth rate lags behind the 5% increase in U.S. nominal GDP, suggesting that OOH is growing slower than the overall economy. The industry faces challenges in maintaining purchasing power and market share against faster-growing advertising sectors. The comparison with Australia's OOH market, where digital screens generate a higher revenue share, underscores the untapped potential in the U.S. market for monetizing digital screens more effectively.
What's Next?
To capitalize on the growth potential, the U.S. OOH industry must focus on strategic monetization of digital screens, similar to the Australian market. This includes embracing independent verification, programmatic capabilities, and deeper integration with data and targeting. By doing so, the industry can unlock significant revenue growth and expand its market share. The strategic shift towards digital transformation is essential for the industry to move from resilience to market-leading growth.
Beyond the Headlines
The U.S. OOH industry's growth trajectory is not just about revenue figures but also about adapting to a data-driven advertising landscape. The shift towards digital screens represents a broader trend in advertising, where measurable outcomes and sophisticated strategies are increasingly important. The industry's ability to leverage digital transformation will determine its future competitiveness and influence in the advertising market.
