US Outdoor revenue rose 1% to $7 billion during 2014 according to the latest figures released by the OAAA. The following chart compares US outdoor revenues with us radio revenues and the US gross domestic product. The chart demonstrates that the US outdoor revenues have grown in line with the US economy since the 2009 recession. US outdoor revenues grew 3%/year since the 2009 recession while the GDP grew 4%. Radio revenues underperformed the economy due to competition from web based advertising.
| US Radio Revenue | US Out-of-Home Revenue | US GDP | ||||||
| Year | (millions | % | (millions) | % | (billions) | % | ||
| 1994 | $10,652 | 11% | $3,159 | 7,545 | ||||
| 1995 | $11,470 | 8% | $3,500 | 11% | 7,893 | 5% | ||
| 1996 | $12,412 | 8% | $3,760 | 7% | 8,402 | 6% | ||
| 1997 | $13,794 | 10% | $4,047 | 8% | 8,889 | 6% | ||
| 1998 | $15,410 | 10% | $4,413 | 9% | 9,450 | 6% | ||
| 1999 | $17,681 | 15% | $4,832 | 9% | 10,036 | 6% | ||
| 2000 | $19,819 | 12% | $5,235 | 8% | 10,512 | 5% | ||
| 2001 | $18,369 | -7% | $5,193 | -1% | 10,837 | 3% | ||
| 2002 | $19,409 | 6% | $5,232 | 1% | 11,231 | 4% | ||
| 2003 | $20,683 | 7% | $5,504 | 5% | 11,991 | 7% | ||
| 2004 | $21,411 | 3% | $5,831 | 6% | 12,816 | 7% | ||
| 2005 | $21,455 | 0% | $6,300 | 8% | 13,649 | 6% | ||
| 2006 | $21,699 | 1% | $6,810 | 8% | 14,233 | 4% | ||
| 2007 | $21,310 | -2% | $7,300 | 7% | 14,668 | 3% | ||
| 2008 | $19,478 | -9% | $7,300 | 0% | 14,383 | -2% | ||
| 2009 | $16,029 | -18% | $5,900 | -19% | 14,681 | 2% | ||
| 2010 | $17,287 | 6% | $6,100 | 3% | 15,238 | 4% | ||
| 2011 | $17,396 | 1% | $6,400 | 5% | 15,956 | 5% | ||
| 2012 | $17,645 | 1% | $6,700 | 5% | 16,502 | 3% | ||
| 2013 | $17,649 | 0% | $6,900 | 3% | 17,044 | 3% | ||
| 2014 | $17,509 | -1% | $7,000 | 1% | 17,701 | 8% | ||
| 2009-2014 growth | 2% | 3% | 4% |
The chart demonstrates that you need to be careful about allowing annual increases in your land leases. I’ve seen land leases recently with 4% annual increases. If the outdoor revenues are growing 3%/year and you agree to a 4%/year lease increase your cashflow margin, and attractiveness to a potential buyer, will decline.
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