Life as we know it is continuously changing. With cultivation, urbanization, and deforestation all occurring at unprecedented rates it is clear that humankind is causing a disruption. Human growth is disturbing Earth’s delicate ecosystems and causing the planet to respond in a variety of unpredictable, and sometimes even devastating ways. Climate change is an overarching issue that stands to impact nearly every facet of human life. With Natural Disasters becoming more common we may begin to see assets being destroyed at increasingly high rates. Will companies stop investing in OOH if this becomes a dominant trend? This post will answer that question and examine some of the contributing factors.

Current Climate

Climate change is having a profound effect on the frequency of natural disasters*. To illustrate the increased frequency it should be noted that in 1970, the average number of natural disasters per year was 78. In 2004 that number had skyrocketed to 348. From 1980 to 2009 there has been an 80% increase in climate-related disasters, and the number of flood and storm catastrophes has risen by more than 7% annually. The rate at which these numbers are growing is concerning, but it isn’t the only problem.

In addition to frequency, the strength and power of these disasters are also increasing. 2017 was the costliest, and one of the most destructive, years to date for natural disasters in the United States. Two of the most devastating hurricanes to ever hit the continental US, Hurricane Harvey and Hurricane Irma, occurred within just one month of each other. California suffered through its most intense wildfire season ever, 14 cities in the Midwest experienced record flooding, and over 1400 tornadoes touched down in locations all across the country! These record-breaking disasters amassed over $306 billion dollars in damage and serve as a reminder of the negative impact that climate change can have on the cities we live in.

Protection & Prevention

The main threat that these storms pose to the out-of-home industry is the destruction they can cause to company’s physical assets. Aggressive winds topple billboards, heavy rains cause electrical shortages in digital displays, and wildfires threaten to burn down anything and everything that lays within reach. Will this destruction cause decreased investment in OOH?

The simple answer to that question is no. OOH is a 7.7 billion dollar industry that is consistently growing. Outdoor advertising offers too much potential value to its customers for it to be completely abandoned. Additionally, the rise of DOOH and the potential of programmatic have recently caused a growing interest in the industry from advertisers everywhere. These innovations will serve will act as safeguards, protecting the industry from the adverse effects of climate change by promising marketers increasingly effective offerings.

Another reason that natural disasters won’t collapse the industry is that there are ways for
companies to protect themselves against these catastrophes. Most notably, by investing in insurance policies. There are two primary types of insurance policies that can be considered. The first is a replacement policy that covers the full costs required to reconstruct or repair a display. The second is a corporate liability policy that covers the cost of damages incurred when an asset harms someone’s property or causes a physical injury. Both of these policies can be procured at relatively low monthly rates and will act as ideal forms of protection against disaster-related damages.

Companies can’t wholly prevent natural disasters, but if they act in an environmentally responsible manner, they can play a role in limiting their effects.  Even just committing to small changes, such as investing in energy-efficient assets, replacing high-wattage fixtures with LED alternatives, or converting to recyclable printed materials can make a difference and have a profoundly positive impact. Additionally, outdoor displays can help to mitigate the effects of disasters by running charity campaigns much like the ones that were seen after hurricanes Harvey and Irma.

The environmental concerns of today call for honest consideration and innovative solutions. Although assets can be insured, and billboards reconstructed, the OOH industry needs to do it’s best to support the ecosystems of tomorrow. Through threatening situations and seemingly uncertain futures, OOH possesses the power to persist.

Check out DOmedia, home to the largest database of OOH vendors in the US, and start planning your next outdoor ad campaign today!

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