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 Billboard Advertising News & Press Releases
| For Imediate Release 12/22/2008 |
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Digital Billboard and Digital Out-of-Home Ad Spend Triples |
Anywhere —
Digital Out-of-Home Ad Spend Triples
The US digital out-of-home (OOH) media industry - which includes video
ad networks, digital billboards and ambient ad platforms - is on pace
to grow 11.2%, to $2.43 billion in 2008 and now comprises 29.1% of
overall out-of-home ad spending, according to the “Digital Out-of-Home
Media Forecast 2008-2012” from PQ Media.
While
PQ predicts the industry to experience a shakeout that will cause its
growth this year to decelerate from 2007’s 24.5%, digital OOH is still
among the fastest growing ad media in the US with an expected compound
annual growth rate of 12.9% between 2007 and 2012. US digital OOH
spending has tripled since 2002, growing 23.1% on a compound annual
basis from 2002-2007 and exceeding 20% growth each year of the period.
Additional forecasts for specific media:
* US spending on video ad networks, the largest segment of digital OOH
media, is on track to expand 8.1% in 2008 but will decelerate in 2009
before returning to double-digit growth in 2010.
* Digital
billboards remains the fastest-growing segment, though it will be
slower in 2008, posting growth of 28.2% and remaining in the 20% range
through 2012.
* Ambient ad platforms will grow 6.8% in 2008. This
growth compares with expected low single-digit growth or outright
declines in most ad-based media in 2008 and 2009, including newspapers,
radio, broadcast TV and magazines.
PQ media forecasts digital
OOH spending in Europe, Asia and the Americas to grow 12.8%, to $6.11
billion in 2008. This growth is slower than last year’s 22.6% rate, but
digitial OOH is still expected to expand 14.5% from 2007 to 2012.
Though
the US now accounts for nearly 40% of global digital OOH spending, this
share will decline over the next several years. Key international
growth markets will be Russia, India, China, Brazil, and Australia,
among others. These countries will benefit from major trends such as
emerging market potential for operators, greater brand acceptance,
advanced technology and new measurement systems, the report said.
The
most active digital OOH brand categories in 2007 were CPG &
electronics, followed by media & entertainment, food & drink,
and retail. Overall, 66% of digital OOH ad spend was national versus
local, with video ad networks featuring more national advertising and
digital billboards generating more local, according to PQ Media.
Among
the key trends going forward are the emergence of venue-based media
solutions, which combine multiple digital OOH options and other
marketing strategies, such as event marketing and sampling, to provide
brand marketers with a range of out-of-home venues, platforms,
demographics and psychographics to build brand affinity.
PQ
Media also predicts that advertisers will continue to boost spending in
digital OOH as consumers spend more time outside the home and reduce
traditional media usage. Escalating gas prices, for example, prompted
more consumers to utilize mass transit in 2008, creating expanded
audiences for digital OOH advertising that reaches bus, train and
subway riders.
“This medium is too powerful not to breakout at
some point in the next couple years because the secular trends driving
its growth are not going away,” said Patrick Quinn, president & CEO
of PQ Media. “The industry’s direction is still evolving, but the
adoption of standard measurements and business practices will go a long
way toward placing digital out-of-home in theregular media mix.”
The
digital OOH media sector enables advertisers to engage target consumers
in captive locations during their daily routines through video
advertising networks, digital billboards and ambient ad platforms. The
media platforms are further categorized by various venues and
locations, including theaters, retail, offices, entertainment,transit,
universities, roadside, and on various objects. |
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