Digital out-of-home advertising has fared pretty well through the recent economic environment, and early estimates for 2010 have been positive. Now a new BIA/Kelsey report (via MediaBuyerPlanner) confirms what the industry has been saying: digital out-of-home spending will ‘skyrocket’ in coming years. In fact, BIA/Kelsey is predicting spending will increase at an annual rate of 13.5%, going from $2.2 billion in 2009 to $3.7 billion in 2013.
Digital out-of-home advertising is made up of those nifty digital billboards you probably see cropping up beside roads near you and “place-based” digital signs, like those you may see at the gas station or in the grocery store. They look great, and allow the ability to update them very quickly means they can be used for things like a newspaper advertising daily headlines or a bank showing interest rates. They allow colorful, intricate designs, so they’re also very eye-catching to consumers and have excellent message recall rates.
In fact, the only problem it seems like the industry has right now is that there are tons of digital OOH companies out there, making it hard for media buyers to make big, wide-ranging buys easily.
“DOOH must get easier to plan, buy and measure in order to reach scale,” says Rick Ducey, chief strategy officer, BIA/Kelsey. “With consolidation, partnerships and interoperable platforms, we see the buying process becoming more integrated, which will spur growth.”
Billboards account for 66% of all out-of-home revenues. For comparison, traditional out-of-home is expecting 1.4% growth.
Wednesday, Nov 18, 2009
Michelle OBrien