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    SNL Kagan Economics of Outdoor & Out of Home Advertising Estimates Market to Surpass $10B by 2020

    Despite projected mid-single-digit revenue growth over the decade, SNL Kagan says operators will need to remain versatile in delivering low-cost and effective ways to reach both mass and targeted audiences

    Monterey, CA (PRWEB) February 01, 2012

    A newly-released SNL Kagan study, “Economics of Outdoor & Out Of Home Advertising,” reveals that although the outdoor advertising market was up by an estimated 3.0% year over year overall in 2011 to $6.31 billion, it has not managed to claw back the roughly $1.4 billion of revenue it lost between 2007 and 2009. Going forward, SNL Kagan projects the outdoor/out of home industry will grow at a 5.9% CAGR to reach a total market value of $10.55 billion in 2020.

    Although none of the three major public outdoor/out of home groups escaped the recent financial crisis, the trio of CBS Corp.'s CBS Outdoor, CC Media Holdings Inc.'s Clear Channel Outdoor Holdings Inc. and Lamar Advertising Co. has seen some upswing since, managing to grow total revenues over each of the past seven quarters.

    These companies have been riding a positive trend since the beginning of 2010, with combined revenues for the first nine months of 2011 up 6.8% to $4.41 billion from $4.13 billion in the prior-year period. The gains have not been able to cover the $1 billion decline between 2007 and 2010, however, when combined revenues for the top three operators dipped from $6.70 billion to $5.71 billion.

    While SNL Kagan expects the outdoor/out of home ad industry to continue its mid-single-digit revenue growth over the 10-year projections period, operators will need to remain versatile in delivering low-cost and effective ways to reach both mass and targeted audiences, even as other media platforms become more niche-oriented and fragmented.

    ###

    Christina Twomey
    SNL Financial
    434.951.6914
    Email Information


     

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