April 4, 2011 -- INDUSTRY INDICATORS
US corporate profits, an indicator of corporate demand for signage, jumped 26.4 percent in the third quarter of 2010 compared to the same period in 2009.
Total US retail sales, a potential measure of signage demand, increased 8.2 percent in the first two months of 2011 compared to the same period in 2010.
QUARTERLY INDUSTRY UPDATE
Study Touts Benefits of Outdoor Advertising - Every dollar spent on out-of-home advertising translates to an average of $2.80 in product sales, according to a recent study. The report, results of which were released by the Outdoor Advertising Association of America (OAAA) in March 2011, concluded that out-of-home advertising has a higher return on investment than television and print advertising. Used in conjunction with other advertising media, out-of-home advertisements also increase campaign retention rates. Among the benefits of outdoor advertising cited by the OAAA is the medium's ability to reach consumers closer to the point of sale.
Signs Point to Retail Improvement - US retail sales, a key demand indicator for sign manufacturers, continued to rebound in early 2011. Sales during February rose 1 percent compared to the month prior, marking the eighth consecutive monthly gain. Such sales growth allows retailers to expand their marketing budgets and operations, creating new business for sign makers. Automobile dealers led the improvement seen in February, with sales rising 2.3 percent month-over-month and 23.7 percent compared to the same month in 2010. Overall, February 2011 retail sales increased 8.9 percent year-over-year. |
