Billboard & Outdoor Advertising in the US Industry Market Research Report from IBISWorld Has Been Updated

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Over the five years to 2013, revenue for the Billboard and Outdoor Advertising industry is expected to fall as the industry faces competition from various advertising media; however, billboards remain an attractive form of advertising, because of their ability to reach a mass market, a feat that is becoming more difficult to do as consumer markets fragment. For these reasons, industry research firm IBISWorld has updated a report on the Billboard & Outdoor Advertising industry in its growing industry report collection.

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Advertising expenditure is recovering with consumer spending, boosting industry demand.

Over the five years to 2013, revenue for the Billboard and Outdoor Advertising industry is expected to fall at an average annual rate of 1.6% to $9.8 billion. Industry revenue is generated by the sale of advertisements on display faces, including billboards, public transit and street furniture. Demand ultimately stems from trends in consumer spending, making the industry sensitive to fluctuations in disposable income and retail sales. These factors help strengthen corporate profit, which influences demand for all forms of advertising. Therefore, the five-year decline is largely the result of key client industries cutting marketing budgets during the recession. More recently, however, advertising budgets have begun to expand, especially after 2011. As a result, revenue is expected to increase 3.2% in 2013.

The industry faces competition from various advertising media. However, according to IBISWorld Industry Analyst Omar Khedr, “Billboards remain an attractive form of advertising, because of their ability to reach a mass market, a feat that is becoming more difficult to do as consumer markets fragment.” Clients are increasingly requesting the measurement of impression, which estimates how wide an audience a given advertisement will reach. This service is provided through the development of interactive displays. Other developments include digital displays, which will continue to increase revenue by improving visibility, occupancy and making target markets easier to reach.

Lawmakers have attempted to limit the spread of digital displays and new billboard sites by restricting the size, location and content of display advertisements. On the other hand, local governments also facilitate the sale of display sites through the tendering process, in which operators bid for the rights to advertise on transit vehicles and other public structures in return for a portion of advertising revenue or rent. In addition, many states are beginning to privatize their state logo signs services. These signs are placed at highway exits to direct traffic to food, lodging, and other services.

As a result of a rise in advertising expenditure, rate increases and higher occupancy levels of available display, firms are anticipated to see a rise in demand as businesses increase their advertising efforts. “Profitability is also expected to improve as firms increase rates and reap the benefits of high-margin digital displays,” says Khedr. Furthermore, the industry has a medium level of concentration. Concentration has been slowly increasing in the industry as large operators have continued to acquire small competitors.

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IBISWorld industry Report Key Topics

The Billboard & Outdoor Advertising Industry is made up of companies that create and design advertising materials for public display, including printed, painted or electronic displays. Operators may place the displays on billboards or panels as well as on or within transit vehicles, shopping malls, retail stores and other display structures or sites.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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