Dollars spent advertising on posters, billboards, and other out-of-home (OOH) placements climbed to $2.04 billion between July and September, according to U.S. trade group the Out of Home Advertising Association of America (OAAA). The amount represents a 4.3% increase compared to the same time last year and an all-time high for the third quarter.

Overall, the OOH category has grown 4.6% so far this year.

“We are excited to see another record-breaking quarter for OOH, underscoring its enduring relevance and effectiveness in today’s media landscape,” Anna Bager, president and CEO of OAAA, said in a statement.

One factor driving increased ad spend on OOH is digital transformation. Last quarter, digital signs accounted for one-third of revenue, up 7.3% compared to Q3 last year.

“It’s our largest driver and will continue to be,” said Steve Nicklin, svp of marketing and insights at OAAA, when discussing the digital format. “It’s super easy to scale and target.”

Nicklin estimated media buyers will use programmatic channels to purchase around a quarter of all digital OOH ads in 2024. That’s more than double the amount compared to two years ago.

Another factor behind OOH’s rise is people returning to the office and traveling again following the pandemic. In Q3, the transit category, which includes ads on taxis and inside airports, rose 8.3% —more than any other OOH segment.

“Vehicle miles traveled, nationally, are now higher than they were in 2019,” said Nicklin.

Although it represents less than 1% of total OOH ad spend, political advertising also hit a new high in Q3, growing 31.6% compared to the third quarter of the last presidential election cycle in 2020. Campaigns for specific issues, House and Senate races, and the Presidential election increased 60.7%, 184.3%, and 4,075.8%, respectively.

Top spenders on OOH advertising throughout the third quarter were McDonald’s, Apple, Verizon, Amazon, and Anheuser-Busch.

Among the top 100 advertisers, more than half increased their ad spend on the medium compared to Q3 2023. Around a dozen brands, including Meta, Nike, Nestle, Walmart, and Johnson & Johnson, more than doubled their bet in OOH advertising between the two periods.

“Increased investment from top brands and tech leaders across diverse industries further cement OOH’s position as a critical component of modern marketing strategies,” Bager noted in a statement.