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OOH Advertising Q3 2024 Overview

OOH Advertising Q3 2024 Overview

    • Key Highlights from OOH Advertising’s Q3 2024 Report:
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Overall industry growth in Q3 2024 saw a 4.3% year-over-year increase in out-of-home (OOH) advertising revenue, reaching $2.04 billion. This brings the year-to-date growth to 4.6%, showing that the industry is continuing to perform well. A big driver of this growth is digital OOH, which made up 33.2% of total sales and grew by 7.3% compared to last year. Digital formats are clearly becoming more important in the OOH space.

Urban advertising formats, especially transit ads, also saw strong growth, with transit up 8.3% and street furniture growing 7.3%. This reflects trends like more people returning to offices and being out and about in cities again.

 

Several industries really increased their spending on OOH. Automotive, retail, local services, and government sectors all had double-digit growth, with automotive spending up 18%, retail at 17.7%, and local services & amusements at 13.4%. Political advertising also stood out, with a 31.6% increase in spend compared to this time last year. Political campaigns for the presidential race, U.S. House, and Senate saw massive increases, with presidential spending rising by a remarkable 4075.8%.

 

Some of the top brands investing in OOH this quarter include McDonald’s, Apple, Verizon, Amazon, and Anheuser-Busch. Other big spenders were Morgan & Morgan Attorneys, Heineken, Coca-Cola, Universal Pictures, and T-Mobile.

More than 20% of the top 100 OOH advertisers were tech or direct-to-consumer brands, such as Apple, Verizon, Amazon, and Netflix. This shows how much these brands are relying on OOH for targeted, real-time advertising.

 

Overall, OOH is growing and adapting, with more brands across different industries jumping in and a greater focus on programmatic digital out-of-home advertising.

 

SignValue’s Role in the OOH Industry:

 

As a trusted advisor in billboard valuation and consulting, SignValue is committed to helping clients navigate the evolving OOH landscape. Our expertise includes:

 

  • Brokerage Services: Assisting clients in buying, selling, and leasing OOH advertising assets to achieve optimal financial outcomes.
  • Asset Valuation: Providing precise and actionable insights into the value of advertising properties.
  • Lease Portfolio Management: Helping landowners maximize the value of their billboard lease interests.
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For more information on how we can assist with your OOH advertising needs, contact us at [email protected] or (480) 657-8400.

SignValue Selected to Manage Norfolk Southern’s Extensive Billboard Portfolio

SignValue Selected to Manage Norfolk Southern’s Extensive Billboard Portfolio

PHOENIX, AZ – October 2, 2024 – SignValue, the leading Out-of-Home (OOH) advertising advisory services firm in the United States specializing in lease portfolio management, asset valuation, and brokerage, announced today that they have been selected by Norfolk Southern, one of the largest Class 1 railroad operators, to manage its portfolio of billboard licenses.

This landmark agreement will have SignValue oversee 1,500 existing billboard licenses across more than 20 states, marking a major expansion of SignValue’s lease management services.

Norfolk Southern holds one of the largest portfolios of billboard licenses in North America. The collaboration with SignValue will maximize the value and efficient management of these assets by identifying more opportunities for new sign development and optimizing the performance of existing sign sites.

NS SV Press Release (1)

“We are looking forward to partnering with SignValue to enhance our exposure to public and independent billboard operators and maximize the value of our billboard license portfolio, which aligns with our mission to provide shareholders the greatest return on their investment,” said Solomon Jackson, Director Real Estate for Norfolk Southern Corporation.“We are thrilled to partner with Norfolk Southern on this exciting new license management program,” said Paul Wright, CEO of SignValue. “Our team is dedicated to growing this billboard license portfolio through our commitment to transparency, integrity, results-driven solutions and maintaining the highest industry standards to ensure significant returns for Norfolk Southern.”

This partnership strengthens SignValue’s position as a leader in the OOH advertising landscape, known for its client-centered approach.

About SignValue

SignValue is a leading Out-of-Home (OOH) advertising advisory firm specializing in lease portfolio management, asset valuation, and brokerage. With a proven track record of success, SignValue provides expert guidance and innovative solutions to help clients maximize the value of their OOH sign interests.

For more information about SignValue, visit [signvalue.com].

Contact Information:

Paul Wright
CEO, SignValue
Phone: (480) 657-8400
Email: [email protected]
Website: signvalue.com

Billboard Appraisal
Signage, Sponsorships, and Naming Rights
Sign Owners
Landowners

Q2 2024 Performance Review: A Comparative Analysis of Clear Channel Outdoor, Lamar Advertising, and OUTFRONT Media

Q2 2024 Performance Review: A Comparative Analysis of Clear Channel Outdoor, Lamar Advertising, and OUTFRONT Media

As the Out-of-Home (OOH) industry continues to evolve, the Q2 2024 financial results of the industry’s three largest companies—Clear Channel Outdoor, Lamar Advertising, and OUTFRONT Media—offer valuable insights into their strategies, growth areas, and challenges. Below, we provide a detailed comparison and analysis of their performances during this quarter, highlighting key financial figures and strategic movements.

Clear Channel Outdoor: Strategic Focus Amid Revenue Shifts

Clear Channel Outdoor reported a consolidated revenue of $637.2 million for Q2 2024, reflecting a 7.7% decline compared to the previous year. This decrease was largely influenced by the divestiture of the company’s European operations, which had a significant impact on overall revenues. However, the Americas segment saw a 5.2% increase, bringing in $559 million. This growth was primarily driven by digital transformation efforts and a remarkable 21.4% increase in airport advertising revenue.

Clear Channel’s focus on expanding its digital footprint in the Americas, particularly in high-traffic areas like airports, reflects the company’s strategy to leverage digital innovation to offset declines in traditional revenue streams. The company also posted an Adjusted EBITDA of $124.1 million, indicating stable operational performance despite the broader revenue challenges.

OUTFRONT Media: Digital Expansion and Transit Advertising Drive Growth

OUTFRONT Media reported a 4% increase in total revenue for Q2 2024, bringing the figure to $477.3 million. Billboard revenue grew by 2.3% to $360.2 million, driven by the company’s ongoing focus on digital expansion and its strategic investments in transit advertising. OUTFRONT has continued to bolster its digital and programmatic offerings, which have played a key role in driving revenue growth.

The company maintained a strong Adjusted OIBDA of $126.0 million, reflecting effective cost management and a solid financial foundation. OUTFRONT’s emphasis on transit and digital advertising positions it well to capitalize on the growing demand for dynamic and flexible advertising solutions in urban environments.

Lamar Advertising: Steady Growth Through Digital Innovation and Sustainability

Lamar Advertising continued its trend of steady growth, reporting a 4.5% increase in total revenue for Q2 2024, which reached $539.1 million. Billboard revenue rose by 3.2% to $400.5 million, a testament to the company’s sustained investment in digital billboards and sustainability initiatives. During the quarter, Lamar added 103 new digital billboards to its network, further enhancing its digital reach and advertising capabilities.

Lamar’s approach combines digital expansion with a strong focus on sustainability, setting it apart in the OOH landscape. The company’s Adjusted EBITDA stood at $265.0 million, underscoring its efficient operational management and ability to generate strong returns from its investments in digital and green technologies.

Comparative Insights and Industry Implications

When comparing the performances of these three industry leaders, several key themes emerge. First, all three companies have demonstrated a commitment to digital expansion, recognizing the growing importance of digital OOH (DOOH) in driving future growth. Clear Channel and OUTFRONT, in particular, have focused on enhancing their digital offerings in transit and high-traffic areas, while Lamar has complemented its digital strategy with a strong emphasis on sustainability.

Second, each company’s performance underscores the importance of adapting to changing market conditions. Clear Channel’s revenue decline highlights the challenges associated with divesting significant international operations, while its growth in the Americas suggests a potential for recovery through focused digital investments. Lamar’s steady growth trajectory suggests that its dual focus on digital innovation and sustainability is resonating well with advertisers and consumers alike. Meanwhile, OUTFRONT’s success in transit advertising underscores the potential of this sector as urbanization trends continue.

Finally, these results indicate that while the OOH industry faces its share of challenges—such as the ongoing transition from traditional to digital formats and the impact of broader economic conditions—there remains significant growth potential, particularly for companies that can effectively leverage technology and adapt to evolving consumer behaviors.

Final Thoughts

The Q2 2024 results for Clear Channel Outdoor, Lamar Advertising, and OUTFRONT Media provide a snapshot of how each company is navigating the current landscape of the OOH industry. While their strategies differ, the common thread of digital expansion and innovation runs through each of their performances. As the industry continues to evolve, these companies’ ability to adapt and innovate will be key to their ongoing success.

For a more detailed analysis of each company’s performance, including comprehensive infographics and further insights, be sure to explore our individual reports on Clear Channel Outdoor, Lamar Advertising, and OUTFRONT Media.

Billboard Appraisal
Signage, Sponsorships, and Naming Rights
Sign Owners
Landowners

Clear Channel Outdoor Q2 2024 Overview and Infographics

Clear Channel Outdoor's Q2 2024 Results: Navigating Challenges and Strengthening Key Segments in the OOH Industry

Clear Channel Outdoor's Q2 2024 Results: Navigating Challenges and Strengthening Key Segments in the OOH Industry

Clear Channel Outdoor Holdings, Inc. recently reported its second-quarter results for 2024, reflecting both challenges and areas of strength within the out-of-home (OOH) advertising sector. As a leader in billboard valuation and advisory services, SignValue aims to analyze these results and their implications for the broader industry.

Key Highlights from Clear Channel Outdoor’s Q2 2024 Report

Revenue Growth:

Clear Channel Outdoor posted consolidated revenue of $637.2 million for Q2 2024, reflecting a year-over-year decline of 7.7% from $690.5 million in Q2 2023. The decrease was largely driven by the divestiture of its European operations, as well as ongoing macroeconomic pressures. However, the company reported that its Americas segment performed relatively better, with revenues increasing by 1.4% to $345.2 million, bolstered by the growing demand for digital displays and strategic ad placements.

Digital Transformation:

Digital transformation continues to be a critical growth area for Clear Channel Outdoor. In Q2 2024, the company experienced a 4.3% growth in digital revenues within the Americas segment, driven by its increasing deployment of digital displays. These digital billboards are crucial to Clear Channel’s strategy of enhancing audience engagement and providing more dynamic, real-time advertising solutions for its clients. The company remains focused on expanding its digital footprint to drive future growth and deliver stronger returns to advertisers.

Sustainability Initiatives:

While Clear Channel Outdoor did not provide specific updates on sustainability initiatives in its Q2 report, the company has previously expressed its commitment to incorporating eco-friendly practices into its operations. Efforts such as energy-efficient lighting, sustainable construction, and responsible disposal of materials continue to be integral to its long-term strategy. Sustainability remains a key factor in the OOH industry, aligning with broader societal and regulatory shifts toward environmental responsibility.

Operational Highlights:

  • Adjusted EBITDA: The company reported Adjusted EBITDA of $124.1 million for Q2 2024, a decline from $135.2 million in the same period of 2023, reflecting the impact of divestitures and ongoing cost pressures.

  • Americas Segment Performance: As noted, revenue from the Americas grew by 1.4%, driven largely by digital ad sales and the continued recovery of traditional billboard placements.

  • Operating Expenses: Operating expenses for Q2 2024 were $464.3 million, a slight increase compared to $459.1 million in the previous year, due to inflationary pressures and investments in digital infrastructure.

Clear Channel Outdoor’s Q2 2024 results reflect the company’s efforts to navigate an evolving and challenging market. While the global segment faced headwinds due to divestitures, the strength of the Americas segment and its ongoing investment in digital transformation provide positive signs for future growth.

Implications for the OOH Industry

Clear Channel Outdoor’s Q2 2024 results highlight several trends and challenges that are shaping the OOH industry:

  1. Resilience Amid Economic Pressure: Despite macroeconomic challenges and divestitures, the performance of Clear Channel’s Americas segment underscores the resilience of the OOH sector, particularly in North America. This demonstrates that advertisers continue to recognize the value of OOH, especially digital platforms, in reaching large and diverse audiences.

  2. Focus on Digital Growth: The increase in digital revenue highlights the ongoing transformation of the OOH industry towards digital solutions. For companies operating in the sector, investing in digital displays and innovative technologies will be essential for staying competitive and meeting the evolving needs of advertisers.

  3. Operational Efficiency and Sustainability: While specific updates on sustainability were not provided, Clear Channel’s focus on cost management and operational efficiencies is key to weathering the current economic environment. In the long term, a stronger emphasis on sustainability initiatives may further enhance the company’s brand value and appeal to environmentally conscious advertisers.

SignValue’s Role in the Changing OOH Landscape

At SignValue, we are dedicated to helping our clients navigate the dynamic and evolving OOH industry. With nearly 30 years of experience in billboard valuation and advisory services, we are uniquely positioned to offer insights and guidance in this ever-changing landscape. Here’s how we can assist:

  • Billboard Valuation and Advisory: Our expertise in accurate and comprehensive billboard valuation ensures that sign owners, investors, and legal professionals have the information they need to make informed decisions about their OOH assets.

  • Consultation on Digital Transformation: As the industry increasingly shifts towards digital, we provide strategic guidance to clients looking to implement or expand their digital billboard networks, helping them enhance their offerings and drive stronger returns.

Clear Channel Outdoor’s Q2 2024 results underscore both the challenges and opportunities present in today’s OOH market. As companies continue to adapt to economic shifts and invest in digital solutions, there remains significant potential for growth and innovation. At SignValue, we are committed to helping our clients capitalize on these opportunities and achieve long-term success in the OOH advertising industry.

For more information on how SignValue can support your OOH advertising needs, please contact us at 480-657-8400 or [email protected].

Billboard Appraisal
Signage, Sponsorships, and Naming Rights
Sign Owners
Landowners

Lamar Q2 2024 Overview and Infographics

Lamar Advertising's Q2 2024 Results: Driving Growth Through Digital Innovation and Sustainability in the OOH Industry

Lamar Advertising Company recently announced its second-quarter results for 2024, showcasing continued strong performance in the out-of-home (OOH) advertising sector. As leaders in billboard valuation and advisory services, SignValue is eager to delve into these results and assess their broader implications for the OOH industry.

Key Highlights from Lamar Advertising’s Q2 2024 Report

Revenue Growth:

Lamar Advertising reported a solid revenue increase for the second quarter of 2024, underlining the enduring demand for OOH advertising. The company generated $539.1 million in net revenue for the quarter, marking a 4.5% year-over-year growth compared to $515.1 million in Q2 2023. This growth reflects the sustained investment in OOH advertising, as brands continue to utilize its unmatched ability to connect with consumers in high-traffic public areas.

Digital Transformation:

A key element of Lamar’s success in Q2 2024 was its ongoing expansion in digital billboard technology. While specific figures were not disclosed in the report, Lamar continues to integrate advanced digital solutions into its advertising network, offering advertisers dynamic and interactive content capabilities. Digital displays enhance engagement and increase the value proposition for brands by offering real-time updates, flexible messaging, and stronger metrics. This digital growth trend reflects the industry’s shift toward more tech-driven solutions.

Sustainability Initiatives:

Lamar remains committed to sustainability, a key priority for many in the advertising space today. The company’s ongoing focus on green energy and eco-friendly operations, including the use of solar-powered billboards and energy-efficient lighting, strengthens its position as a socially responsible leader in the industry. While specific metrics on sustainability efforts were not disclosed, the company’s emphasis on reducing its environmental footprint will resonate well with advertisers and consumers who prioritize sustainability.

Operational Highlights:

  • Adjusted EBITDA: Lamar’s Adjusted EBITDA was $265.0 million for Q2 2024, representing a 5.2% increase from $251.9 million in the prior-year period, highlighting the company’s operational strength and profitability.

  • Billboard Revenue: Lamar’s core billboard revenue increased by 3.2%, a gain of $12.5 million, totaling $400.5 million for the quarter. This steady growth in traditional billboard revenues demonstrates the ongoing relevance of static displays in the OOH market.

  • Transit Revenue: Lamar’s transit and airport advertising segment saw a slight dip, with revenue declining by 2.5% to $61.7 million. Despite the minor decline, this segment remains a key component of Lamar’s diverse revenue mix.

  • Operating Expenses: Operating expenses for the quarter increased modestly by 1.8% to $280.1 million, largely due to higher costs associated with digital expansion and infrastructure upgrades.

Lamar Advertising’s Q2 2024 performance demonstrates its continued leadership in the OOH space. The company’s focus on digital transformation and sustainability, coupled with steady revenue growth across core segments, positions it well for future success.

Implications for the OOH Industry

Lamar Advertising’s positive Q2 2024 results provide key insights into the evolving landscape of OOH advertising:

  1. Sustained Investment in OOH: The revenue growth reported by Lamar indicates that advertisers remain confident in OOH’s ability to engage audiences effectively. Despite the competition from digital and social media advertising, OOH continues to deliver tangible results for brands, ensuring its place as a valuable part of the media mix.

  2. Digital Growth and Innovation: Lamar’s focus on digital billboards underscores the importance of embracing technology to enhance ad effectiveness. OOH companies must continue to invest in digital capabilities, which offer advertisers more flexibility and better data for measuring campaign success.

  3. Focus on Sustainability: As environmental concerns become more central to business practices, OOH companies that integrate sustainability into their operations will be more appealing to both advertisers and the public. Lamar’s sustainability initiatives, such as the use of solar power and energy-efficient lighting, set a strong example for the industry.

SignValue’s Role in the Changing OOH Landscape

At SignValue, we are dedicated to helping our clients navigate these industry shifts. Our extensive experience in billboard valuation and advisory services uniquely positions us to provide actionable insights and support as the OOH market continues to evolve. Here’s how we can assist:

  • Billboard Valuation and Advisory: With nearly 30 years of expertise, we offer precise, data-driven valuation services for sign owners, financial institutions, and legal professionals. Our deep industry knowledge ensures that our clients receive the most accurate assessments of their OOH assets.

  • Consulting on Digital Transformation: As digital billboards become increasingly prominent, we help our clients evaluate and implement the right digital solutions to improve their advertising offerings and drive higher returns on investment.

Lamar Advertising’s Q2 2024 results reinforce the ongoing strength and potential of the OOH advertising industry. Moving forward, continued investment in digital transformation and sustainability will be pivotal drivers of growth and innovation. At SignValue, we are committed to guiding our clients through these developments and helping them maximize the opportunities in the evolving OOH landscape.

For more information on how SignValue can support your OOH advertising needs, please contact us at 480-657-8400 or [email protected].

Billboard Appraisal
Signage, Sponsorships, and Naming Rights
Sign Owners
Landowners