FOR IMMEDIATE RELEASE
March 24, 2005

Outdoor Ad Revenue Gains Accelerate In 2004

Washington, D.C. - The outdoor advertising industry posted strong revenue growth in the fourth quarter of 2004, with a 4.5% increase over fourth quarter 2003 and an overall increase of 6.0% in 2004 compared to the previous year. Total US outdoor revenue in 2004 was $5.8 billion, up from $5.5 billion in 2003.

“The industry has reestablished historical growth trends that had been consistent for decades,” said Stephen Freitas, chief marketing officer for the Outdoor Advertising Association of America. “The low growth anomalies apparent since 2001 are now gone and the industry is poised to grow at an accelerated rate over the next several years.” According to Universal McCann’s Robert Coen, outdoor’s performance surpassed local newspapers (4.5%), local radio (4.0%), and yellow pages (1.0%).

Outdoor media performance was vigorous across most of the top 10 advertising categories for the year with Local Services & Amusements, typically the largest spending category, remaining solid with 5.2% growth. The biggest gains came in the Financial category, which posted a 37.5% increase for the year. Other sizable gains were in the Media & Advertising (31.9%) and Insurance & Real Estate (15.0%) categories, reflecting the continued resurgence of the U.S. economy. Telecommunications (8.7%), Automotive Accessories (7.9%), and Public Transportation, Hotels & Resorts (0.5%) all reported gains. (Please see attached charts.)

Outdoor is expected to grow 2% over the GDP during the next 12 months. Early indications from OAAA member companies are that outdoor revenue is experiencing a steady rise in 2005.

OAAA is the largest trade association representing the outdoor advertising industry. It is dedicated to leading and uniting a responsible outdoor advertising industry that is committed to serving the needs of consumers, advertisers and the public. OAAA’s nearly 1,100 member companies represent more than 90% of industry income, and donate space to charitable organizations in excess of $350 million each year.

The OAAA issues full industry revenue estimates that include, but are not limited to, CMR’s data on billboards, member company affidavits and media projections based on a mix of recognized national syndicated data sources.

OAAA (Outdoor Advertising Assoc. of America)
1850 M Street, NW Suite 1040
Washington, DC 20036
Phone: 202-833-5566
E-Mail: mmoller@oaaa.org
Website URL: www.oaaa.org