My Turn By Nancy Fletcher

Out of home (OOH) advertising revenue rose 0.8 percent in the second quarter of 2014 compared to the previous year, but dont be discouraged by the low percentage

number.

OOH outperformed all media in Q2 other than television and internet, according to Kantar Media, and the revenue increase marks the industrys 17th consecutive quarter of growth.

The second quarter financial results re-flect a fairly strong local market despite softness in national advertising attrib-uted to a shift in buying patterns.

Since 2002, OOHs share of ad spend has nearly doubled to 5 percent. This reflects both a greater overall invest-ment in OOH and a shift in dollars away from other traditional media. Over the next few years that share stands to grow to 6 or 7 percent. For a long time, OOHs gains were coming at the expense of print media, specifically newspapers. But, media planners say OOH is now gaining dollars previously allocated to broadcast media.

The Driving Forces Behind the Growth of OOH

C A L E N D A R

So what are the driving forces behind the continued growth of OOH?

First, the sheer weight of advertisers using some form of OOH in their media mix sustains the medium. According to iMapData research, more than 300,000 US local businesses use OOH advertis-ing each year. And, according to Kantar Media, 92 of the top 100 US national advertisers are finding a place for OOH in their branding or sales activation strategies.

The profile of the OOH advertiser base expands and evolves over time. For example, Google appeared in the top-15 list last quarter for the first time, ac-cording to Kantar Media. Googles OOH spend was so dramatic in Q2 it almost surpassed their previous annual high of OOH spend.

Advertisers know OOH has the cost-effective ability to deliver the equivalent of a mass broadcast audience and also engage them on a personal level, inter-act with them, and maybe even give a reward at the end.

Second, the extraordinary level of OOH media company investment in new ubiquitous, impactful, and contextually-relevant OOH formats keeps providing a stream of high-quality opportunities for advertisers.

Digital investment lies at the heart of that development, and many OAAA-mem-

ber media companies now have some digital in their offering.

But its not just investment in digital displays. Over the last five years, OOH has been putting innovation to work in all parts of its business, combining enduring impact with innovative new technologies to help marketers reach increasingly mobile consumers.OOH innovations include high impact creative executions that integrate social and mobile platforms, increased measurability with OOH ratings, and improved business practices that help make new technologies easier to use.One example is the Lazo app being used by Norton Outdoor. The app extends the reach of OOH by allowing consumers to capture ads from billboards in close proximity. Consumers can then access and interact with the ads later. Consum-ers can also share ads with their social network.

Third, OOH delivers an ever-growing and high-value audience, especially its sweet spot of young, urban, mobile, and afflu-ent consumers who are hard to reach with traditional media.

More people are spending more and more time out of home and have more abilities to see your advertising. This will become even more important as media keeps getting fragmented and audienc-es harder to reach, says Kelli Sumwalt, vice president of media at Laughlin Constable.

September 2 , 2014

Outdoor Advertising Association of America 1850 M Street, NW, Suite 1040 Washington, DC 20036 (202) 833-5566

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September 11 Oregon OAA Annual Meeting Bend, OR September 11-12OAA of Ohio Meeting Cincinnati, OH

September 15-16OAAA Safety Seminar Houston, TX

Sept 29 - Oct 3 Advertising Week New York, NY

October 1Outdoor Advertising Council of NY Annual Meeting Albany, NY

October 6-8NCOAA Annual Meeting Durham, NC

October 14 OAAA Executive Committee Planning Meeting New York, NY

November 11FOARE Board of Directors Meeting

Outdoor Advertising Association of America 1850 M Street, NW, Suite 1040 Washington, DC 20036 (202) 833-5566

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OOH Growth (cont.)

Fourth, theres the context in which OOH ads are delivered. This is the active space, and the more we study this space, the more convincing the evidence becomes.

We know from Touchpoints re-search that people are in a more positive mindset when out of home than when indoors.

We know from connectivity re-search that people are 33 percent more alert when out of home than when indoors at home.

Intercept interviews also tell us that seven out of 10 people reached while out of home are in the active purchase mode they are actually out there with the purpose of buying something - so you are catching them in exactly the right mindset.

Fifth, theres the unparalleled visual impact of OOH, because OOH has the power to awe and amaze, to turn heads and win hearts.

OOH offers virtually unlimited creative potential and impact. OOHs large-scale creative imagery has a way of burning itself into our memories, where we can subsequently access it at physical and online points of sale.

According to media planning guru Les Binet of adamandeveDDB, in the report The Long and the Short of It, the branding effects of OOH are on par with the branding effects of televi-sion.

And, as a media professor recently said, The future of advertising is going to be to make ads short, funny, visual, and authentic to attract Millen-nials. By definition: this means OOH.

Please let me know if you have ad-ditional views on the forces driving the growth of OOH. I can be reached at nfletcher@oaaa.org or (202) 833-5566.

Neighbors

George Merovich, Lamar Advertising Company of York, PA, listens to Rep. Scott Perry (R-PA) on August 13 in York. Merovich and Perry, elected to Congress in 2012, are neighbors. Perry is one of four congressmen from Pennsylvania on the House Transportation & Infrastructure Committee.

OAAA Advertising with Media LifeThrough the summer, Media Life Maga-zine ran a series of stories focused on the OOH advertising industry. OAAA took this opportunity to promote the industry with online banner ads. Ads for the Art Everywhere US cam-paign were seen on medialifemagazine.com for two weeks last month. The ads encouraged readers to visit the cam-paign website and learn more about Art Everywhere US.

This week Media Life Magazine readers will see the many resources OAAA offers to agencies, including the OOH Creative Testing Tool, the OOH Directory, OOH case studies, and more. Each ad is aimed at showcasing OOH and what it has to offer, said OAAAs Stephen Freitas. We want agencies to know where to go when they want to learn about the industry and which OOH media companies operate where.