Report: Telecom spending drives Q3 outdoor ad spend


In a Bear Sterns report issued today on outdoor ad spend, the company noted that the Outdoor Advertising Association of America (OAAA) recently said  industry revenues increased by 6.1% in Q3.  Q3 revenue growth was driven by categories such as communications (+35%), public transportation, hotels & resorts (+13%), and the insurance & real estate category (+6%). Communications spending grew by nearly 40 million in Q3. 

Real estate remained one of the more healthy categories in Q3, posting the 3rd largest growth rate among the top 10 categories.  However, real estate spending has slowed from 15% in Q1, to 13% in Q2, to 6% in Q3.  Said the report: “Some of the private outdoor companies we speak to have cited real estate or slowing ad spending from home builders as reasons for a softer second half than first half of the year.”    

Five of the top 10 ad categories posted increases in Q3, which is lower than Q2, when 7 of the top 10 categories showed increases.  In addition to the categories listed above, the largest category, local services and amusements grew by 1%, while auto, auto access & equipment increased by 2%.  Ad spending from the media and advertising category was flat.  Down categories included automotive dealers & services (-5%), financials (-5%) and retail (-3%).  On a combined basis, the two separate auto categories posted a 2% decline. 

Bear Stearns’ is maintaining a 7% growth outlook for 2007.  “Outdoor advertising is benefiting from advertiser perceptions that other traditional mediums face increased competition, fragmented audiences, and new technologies.  Though ad spending from weak categories (financials) and strong categories (real estate) bear watching given recent trends in the housing and financial markets, we expect outdoor to continue to take share from traditional media.  Converting static displays to digital displays should accelerate the pace of outdoor’s share gains.”