Rapid Growth Rate Predicted for Digital Out-of-Home Media
Consumers are paying attention to all things digital these days. This includes noticing digital out-of-home (DOOH) signs. Marketers have begun to realize that promotions on digital out-of-home signs are having an impact and PQ Media analysts are predicting that industry operators will be able to increase their sales of this digital inventory by 14.2% compound annual growth rate (CAGR) between now and 2017.
In 2013, DOOH revenues increased to $8.878 billion. In the U.S., consumers spend about 47 minutes every week engaged with DOOH. This includes noticing signage along their commuting routes, in airports as they travel, and in malls as they shop. The exposure level is expected to increase to 56 minutes every week by 2017.
Patrick Quinn, CEO, PQ Media, says "… DOOH exposure and revenues continue to grow at a time when ad media are increasingly challenged by crosscurrents taxing their ability to engage target consumers…" The firm attributes growth in DOOH dwell time to better sign design along with engaging content and interactive capabilities, especially if the signs are offering discounts or coupons.
On the other hand, the traditional out-of-home market which totaled $32.4 billion in global revenue last year, only grew 4.3%. Projected annual growth rates for the format will likely be around 4.2% through 2017. While traditional out-of-home advertising captures well over an hour of consumer media time on a weekly basis, analysts expect that number to drop through 2017.
As interest in this format grows, the industry will likely place more inventory in transit and health care locations as well as in other public arenas where partnerships may be formed between a space-use licensing agency and a media company.
To learn more about audiences targeted by DOOH formats, like commuters, check out the Audience Interests & Intent Report available at the Research Store on ad-ology.com.