London, UK – Outsmart, the trade body for the Out of Home (OOH) advertising industry, has released its latest revenue report, highlighting substantial growth in the UK’s OOH sector for the first quarter of 2024. Compiled by PricewaterhouseCoopers LLP (PwC), the report details key trends in both traditional and digital out-of-home advertising.
Out of Home Advertising Sees +16% Growth in Q1 2024
Outsmart’s report shows that OOH revenues for Q1 2024 totaled £292 million, representing a +16.4% increase compared to the same period last year. This increase highlights the continued strength and appeal of OOH advertising in the current market.
Significant Growth in Digital Out of Home Revenue
The report reveals a significant rise in Digital Out of Home (DOOH) advertising revenue, which saw a +22.8% increase. DOOH’s share of total revenue increased from 61% in Q1 2023 to 65% in Q1 2024, reflecting the ongoing digital transformation within the industry.
Growth in Classic OOH Advertising
Traditional OOH advertising also experienced growth, with revenue increasing by +6.2% in Q1 2024 compared to the same period last year. This growth indicates ongoing interest and investment in classic OOH formats alongside the rise of digital options.
Industry Expert Insights
Justin Cochrane, Chair of Outsmart, stated, “These results reflect a positive outlook for Out of Home advertising, boosted by economic optimism and increasing public activity. As we approach the summer, brands can effectively engage with audiences through OOH advertising.”
Andy Lobo, TMT Senior Manager at PwC UK, added, “The UK OOH industry has shown strong growth this quarter, building on recent momentum. Increased digital penetration allows for more flexible and innovative advertising campaigns, supporting long-term growth.”
Historical Revenue Growth
The UK’s out-of-home advertising revenue has shown steady growth over the past decade:
- 2010: £880 million
- 2019: £1,301 million
- 2020 (pandemic impact): £699 million
- 2023: £1,295 million
Quarterly Revenue Insights
Analysis for Q1 2024 continues the positive trend seen in previous quarters. Seasonal variations persist, with Q4 typically being the peak revenue period. Q1 2024 data indicates sustained advertiser confidence and investment in OOH media.
Revenue Breakdown by Environment
The report breaks down OOH revenue across three key environments: Transport, Roadside, and POS/Retail/Leisure.
- Transport: Increased from £329 million in 2010 to £686 million in 2023.
- Roadside: Grew from £187 million in 2010 to £605 million in 2023.
- POS/Retail/Leisure: Rose from £115 million in 2010 to £267 million in 2023.
UK Digital Out of Home Revenue
DOOH revenue has seen significant growth from 2011 to 2023:
- 2011: £128 million
- 2019: £694 million
- 2023: £841 million
DOOH Revenue as a Percentage of Total OOH Revenue
The share of DOOH revenue as a percentage of total OOH revenue has steadily increased:
- 2011: 14%
- 2019: 53%
- 2023: 65%
Quarterly and Environmental Breakdown of DOOH Revenue
DOOH revenue growth remains consistent across all quarters, with significant contributions from environments such as Roadside, Transport, and Retail/Leisure.
Outsmart’s Commitment to Industry Excellence
Outsmart’s CEO commented, “These revenue figures demonstrate the dynamic and evolving nature of the OOH industry. The ongoing investment and growth, particularly in digital formats, highlight the sector’s adaptability and innovation. Outsmart remains committed to supporting our members in leveraging these opportunities to deliver effective advertising solutions.”
About Outsmart
Outsmart is the trade body for the UK Out of Home advertising industry, promoting the medium’s effectiveness, value, and innovation. It represents leading media owners who deliver impactful and wide-reaching advertising campaigns. For more info: https://www.outsmart.org.uk/
Download the full report at: https://www.outsmart.org.uk/site/userfiles/File/20240604120106_UK_Out_of_Home_Revenue_-_2024_Q1_vF.pdf
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