The first quarter of the year is behind us, and more numbers for regions across the globe for 2024 are coming in. For the US, it’s exciting to discover that the OOH ad revenue has surpassed the colossal $9 billion mark for the first time. We also heard news that the Las Vegas Sphere might be in for an expansion to other cities! In this month’s news set, we look at prospecting mistakes in selling Out-of-Home ad space, as well as digital signage implementation at a reduced cost.
OOH ad revenue surpasses the $9 billion mark!
According to recent reports from Out-of-Home Advertising Association of America (OAAA), Out-of-Home advertising revenue hit $9.1 billion in 2024. That’s a 4.5% increase, marking the first time the industry passed the $9 billion mark. Very important, Digital OOH accounted for 34% of total OOH ad spend. Digital continues its growth!
In other data from the report, 2024 marked a few other important successes. The presidential election year drove record OOH spending on political ads. Legal Services saw a 16% increase in spending, while Chain Food Stores & Supermarkets rose by 15%.
As for the main sources of this spend, over 25% of the top 100 OOH spenders were tech or direct-to-consumer brands. These included Apple, Google, Amazon, Netflix, T-Mobile, Uber, and Meta. Furthermore, 60% of top 100 OOH advertisers more than doubled their investment. For more info on spenders and the success of the Out-of-Home world in 2024, head over to OAAA.
On the topic of rising OOH ad revenue, JCDecaux reported a 10.2% revenue growth in 2024. In Digital Out-of-Home, revenue grew by 21.9% in 2024. Programmatic ad revenues are also on the rise, as expected.Â
Will the Las Vegas Sphere multiply?
The Las Vegas Sphere has continuously been the talk of the town since it began its operations. It’s quite a unique feat of technology, but it may not be that unique for long. Sphere Entertainment Co. is planning on developing a franchise model for smaller 5,000-seat Sphere venues. This constitutes a quarter of the size of the original one. The aim is to deploy these smaller versions in cities where they could better pass zoning and light trespass challenges.
What’s interesting is that the main earnings of the Sphere come from its external LED Exosphere. Exterior ads and suite licenses potentially generate around $80 million annually. The greatest challenges of deploying these smaller spheres include high capital costs, energy consumption, and zoning restrictions. The original Las Vegas Sphere itself initially operated at a loss, taking some time to break even. While this is also to be expected from upcoming spheres, given the cost of production, it is still no small matter to make such a big dive.
Overcoming prospecting mistakes
We often mention the possibility of selling digital signage space in our posts. After all, it’s a great way to generate additional revenue, and you may even find the location of your displays is quite appealing for selling ad space to third parties. Whether you sell displays full-time or are simply interested in making use of unused space, Billboard Insider often publishes posts on this topic, providing many useful tips on selling ad space outdoors, whether it be digital or static.
In a recent post they talked about attitude traps sales people put themselves in, preventing successful sales. One common trap has to do with a positive mindset. If you feel inferior or like wasting your clients’ time, you’ve failed before you’ve even begun. Another trap is set up by your ego, as many salespeople try to dominate conversations by demonstrating their knowledge and only providing information without asking questions and learning of the unique situation their client is in. Read more!
A display that is hidden, until it’s lit!
Another feature and even a goal of digital signage we often mention is its ability to work with its surroundings. This next bit of tech is doing precisely that, as it blends into its surroundings, only becoming visible when activated. The Hidden-Til-Lit display is primarily envisioned for auto dashboards and consumer appliances. Of course, expansion into other fields is very likely, given the sleek appearance and impact on the user experience.Â
Whether it’s applied on wood, stone, or metal, the entire structure should remain homogeneous, with neither display contours nor technical controls being visible.
Cost-efficient digital signage for small businesses
This month on the OnSign TV blog, we covered ways of implementing digital signage in small businesses at an affordable cost. This can apply to businesses looking to build a strong and lasting setup, but also those who simply wish to try out digital signage before taking any big steps forward. Some key points we outlined include mindful selection of software, utilizing free assets and tools available online, as well as partnering with local businesses to explore new possibilities.
Cover image by Aamyr.