Digital Out of Home Market Growing

Marketers are intent on reaching consumers as they go about their daily business. And they realize that not all consumers are delighted to read advertising on their smart phones. As a result, media planners and buyers have been steadily increasing the amount of money they are spending on digital place-​based media or DOOH.

According to new data compiled by the Digital Place-​based Advertising Association (DPAA), the  following percentages of media planners are planning to use digital place-​based media:

  • 2010 65.3%
  • 2011 75.5%
  • 2012 86.3%

For many marketers, the decision to fund place-​based media will come at the expense of traditional media. Here is where media planners will make cuts as they shift the media mix:

  • Outdoor 54.2%
  • TV 43.8%
  • Digital/​Online 22.9%
  • None (zero-​based approach)  19.8%

Susan Danaher, president of the DPAA, notes the importance of nearly 20% of planners including this format using a zero-​based approach. “What that says to me is that the sector is making great progress by being included in the very initial consideration set of media forms, and valued for enabling clients’ messages to be at the right place, at the right time.”

The DOOH market was valued at about $2.07 billion in 2010 by PQ Media. The digital place-​based network is the largest segment of this market and was worth $1.54 billion last year while the digital billboard category spending totalled $532 million. Analysts expect healthy increases for the rest of this year and in 2012 as marketers reach for consumers who spend a significant portion of their time outside the home.

[Sources: Survey of Strategic Media Planners Forecasts Dramatic Increase. DPAA​.org. 5 Jul. 2011. Web. 2 Aug. 2011; Global Digital Out of Home Media Forecast. PQMedia​.com. 2011. Web. 2 Aug. 2011]

 

Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.