Out of Home Networks to Compete with TV Media Companies for Marketing Budgets

Consumers can’t spend all of their time connected to the Internet through their mobile devices. As consumers travel about, they make great targets for out of home advertising. Marketers are counting on reaching consumers through either DPN (digital place-​based networks (DPN) or digital billboards & signage (DBB).

Research shop PQMedia reports that the global digital-​out-​of-​home media market will increase 16.9% in 2011 and reach $7.56 billion. The U.S. market comprises a significant percentage of digital-​out-​of-​home (DOOH) ad spending. The domestic market will see a growth rate of 16.7% in 2011, rising to $2.41 billion. The DPN sector is the larger sector in the U.S market and accounted for $1.54 billion in spending last year.  The U.S. DBB sector, valued at $532 million last year, is comprised of roadside and transit, cinema, retail, office and entertainment.

PQ Media analysts analysts also note that DOOH operators, especially DPNs, have been aggressively courting agency money that has traditionally been used for TV.  However, they also point out that “audiences, mindsets and behaviors of in-​home TV viewers drastically differ from those of DOOH networks.”  PQMedia CEO Patrick Quinn, says operators should instead emphasize the unique ways that marketers can use strong program content on out of home portals to engage consumers in various venues and influence their buying decisions. It remains to be seen whether DPN operators will continue to compete with TV for ad  money or sell themselves a ‘part of integrated media solutions.’ In addition, analysts point out the cinema media space providers have been able to sell both nationally and locally because of their ‘national footprint.’ Consolidation in the out of home market may well lead operators in that direction sooner rather than later.

[Source: New PQ Media Forecast. Pqmedia​.com. 22 Feb. 2011. Web. 4 Apr. 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.