Digital Out-​of-​Home Market Growing as Brands Turn to New Video

The digital out-​of-​home ad sector remains one of the top industry performers. And the growth in this sector is taking place both nationally and internationally. PQ Media is out with its latest forecast and it’s one that suggests marketers will continue to make digital out-​of-​home a prominent part of their advertising plans.

This year, total digital out-​of-​home (DOOH) spending should reach $8.31 billion. This level marks a 19.2% increase over last year’s $6.97 billion total. To measure this industry, PQ Media looks at 2 platforms:

  • Digital place-​based networks  (DPNs)
  • Digital billboard & signage (DBBs)

The chief locations used for DOOH advertising are cinema, retail, office, entertainment, transit and roadside. By far, the largest portion of DOOH advertising is spent on DPNs. This market was worth $5.09 billion last year. The rapid growth rate, 11.8% over the previous year, was the result of more activity in the Asia-​Pacific region. While the global DBB portion of the market is smaller, ending last year at $1.8 billion, it is faster growing. Last year, revenues rose 26%.

Currently, the U.S. remains the largest market for DOOH and saw spending of $2.06 billion in 2011. According to PQ Media analysts, this was an 11.2% jump. DPNs in the U.S. grew  “at a high single-​digit rate” while DBB operators realized  “double-​digit growth”.  This year, the U.S. market should reach $2.3 billion which would be a 12.5% boost. DPNs should finish the year at $1.55 billion. The growth rate is attributed to audience metrics and the ability of operators to offer new high-​tech solutions.

While Patrick Quinn, CEO of PQ Media, acknowledges the power of TV as an advertising platform, he notes that “DPNs offer brands opportunities to extend their reach by engaging target consumers with contextually relevant content in venues outside the home.”  Quinn also suggests that as TV ad inventory tightens later this year because of political campaigns and the Olympics, more marketers may turn to DPNs.

[Source:  PQ Media Forecast. Pqmedia​.com. 23 Apr. 2012. Web. 30 Apr. 2012] 
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.