Digital Out-​of-​Home Market to Grow in Face of Increasing Competition

The digital out-​of-​home  (DOOH) ad market continues to grow faster than most traditional markets but experts believe the sector faces challenges. In 2013, digital billboards (DBB) should see a better growth rate than digital placed-​based digitaloutofhomenetworks (DPN). In addition, analysts believe the second half of 2013 will be more lucrative on a global basis for operators in this channel.

In issuing a new report on the DOOH ad market, PQ Media analysts connect the continuing trouble in international economics to the ‘slower’ growth rate of 11.4% in 2012. While this form of advertising may be growing more slowly than other digital formats, it recorded revenue of $7.88 billion. The U.S. has the biggest share of the global market with revenue of $2.17 billion. Of this amount, $1.4 billion went to DPN. That level of spending resulted in a relatively small 4% increase. Analysts say that cinema advertising has been slowing. When that industry is excluded from the calculations, last year’s growth rate was over 6% and was driven  by sales in transit and healthcare networks.  The DBB sector in the U.S. had double-​digit growth of 12% as more digital billboards were installed.

Patrick Quinn, President & Publisher, PQ Media believes the industry will have strong growth in 2013, especially if emerging leaders “drive consolidation, scale, research and efficient processes, while positioning DOOH based on its targeting, flexibility and engagement.” However, Quinn also cited intense competition for advertising dollars as a key threat to the industry.

To learn more about Out-​of-​Home Ad Responders, check out the Audience Interests & Intent Report available at the Research Store on ad​-ology​.com.

[Source: New PQ Media Report: Global Digital Out of Home. 10 May 2013. Web. 21 May 2013] 
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.