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Belch: Advertising and
Promotion, Sixth Edition
V. Developing the
Integrated Marketing
Communications Program
2001 Total Outdoor Expenditures: $5.3 Billion
Street
furniture
Source: OAAA.
Transit
17%
17%
Alternative
outdoor
6%
13. Support Media © The McGraw−Hill
Companies, 2003
60%
Billboards
Outdoor Advertising
Outdoor advertising has probably existed since the days of cave dwellers. Both the
Egyptians and the Greeks used it as early as 5,000 years ago. Outdoor is certainly one
of the more pervasive communication forms, particularly if you live in an urban or
suburban area.
Even though outdoor accounts for only about 2.3 percent of all advertising expenditures
and the number of billboards has decreased, the medium has grown steadily in
terms of dollars billed. In 1982, approximately $888 million was spent in this area; in
2001, expenditures reached $5.3 billion. 1 As the medium was once dominated by
tobacco advertisers (25 percent of its $1.5 billion revenue came from cigarette advertising
in 1991), there were concerns in the industry when an agreement was reached with
46 states in November 1998 to ban all cigarette ads. Increased expenditures from automotive,
retail, and financial companies and from new advertisers such as the dot-coms
have more than made up for the losses. Companies like McDonald’s, Miller, and AT&T
are some of the top spenders in this medium. As shown in Figure 13-2, outdoor continues
to be used by a broad client base, a demonstration of its continued acceptance in the
Figure 13-2 Outdoor advertising expenditures ranked by percent of total 2001 revenues
1. Local services and amusements
2. Public transportation, hotels, and resorts
Top 10 Outdoor Advertising Categories
Listed by percent total ’01 revenues (January–December)
3. Retail
4. Media and advertising
5. Restaurants
6. Automotive dealers and services
7. Insurance and real estate
8. Financial
9. Automotive, access, and equipment
Source: OAAA.
10. Telecommunications
$(000,000)
5.4%
5.3%
4.9%
4.7%
6.6%
7.8%
8.8%
Figure 13-1 Estimated
gross billings by media
category show that outdoor
ads are still the most
popular.
10.0%
11.4%
12.8%
$100.0 $200.0 $300.0 $400.0 $500.0
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Chapter Thirteen Support Media