Digital Place-​Based Ad Funds to Come from Existing Media

Consumers are getting used to seeing digital ads in the out-​of-​home market. Whether they are driving, walking or sitting in their doctor’s office, consumers on the go make a ready market for an ad and technology now makes it possible to deliver a digital message in these environments. More businesses are shifting funds into the digital placed-​based (DPb) ad market making the future look bright for 2013.

Earlier this year, analysts valued the global digital out-​of-​home market at $8.2 billion. The U.S. portion of that market is about $2.05 billion and the digital place-​based advertising sector amounts to 68% of that, or $1.39 billion. That balance of spending goes to billboards. As planners prepare their spending calendars, the Digital Place-​based Advertising Association notes that many will tap funds from their existing budgets to pay for these placements:

  •  Outdoor 64.2%
  • TV 40.7%
  • Digital/​Online 40.1%
  • Experimental/​Test 19.8%
  • Zero-​based planning 15.4%

Next year, virtually all, 94.2% of planners, expect to buy place-​based media. This is 9% more than the planners who indicated an interest in DPb last year. And the spending will become apparent in the cinema, corporate, healthcare, entertainment, education and transit venues.

This relatively new media format “is a sector on the rise” according to Susan Danaher, president and CEO of the DPAA. She points to the increasing number of research shops which are tracking this format. Media planners say they are well aware of statistics provided on digital place-​based media coming from Nielsen (46.4%), GfK MRI (41.950 and IMS (32%), among others and use this information to help them determine where to make their buys.

[Sources: Digital Out-​of-​Home Ad Spend Forecast Up 19.2% in 2012. PQMedia. May 2012. Web. 18 Aug. 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.