More than four in 10 (42%) agency and brand marketers plan to increase their digital out-of-home (DOOH) advertising spending through 2009 and the first half of 2010, according to a forecast and industry update report from Adcentricity, which found that total DOOH spending is on target to hit $4.53 billion by 2013, up from $2.6 billion in 2009.
This projection suggests that DOOH is among the fastest-growing media in North America and will account for 44.1% of all OOH spending by 2013, Adcentricity said.
DOOH Reaches Two-Thirds of US Adults
Research conducted to compile Adcentricity’s “2010 Digital Out-of-Home Outlook & Planning Guide,” also revealed that digital out-of-home advertising currently reaches two-thirds (67%) of US residents ages 18+? each month and delivers a fairly representative cross-section of consumers.
Of those who recall seeing digital out-of-home displays in the past month, 76% noticed them at multiple venues, Adcentricity said. Specific venue details:
- Digital video screens in retail locations (including grocery stores, large retailer/department stores, drug stores, shopping malls or convenience stores) reach more than half (53%) of American adults in an average month.
- Digital out-of-home displays at gas stations and movie theaters each reach more than 20% of US adults per month.
Despite DOOH media’s growth potential and its ability to offer hyper-targeting opportunities, Adcentricity noted in the report that there are significant challenges? in creating large, scalable campaigns because of the complex landscape of ever-changing networks, confusion among advertisers and a complicated matrix of environmental considerations.
Additional findings from the report:
- Digital out-of-home currently has approximately 112 significant network operators (many running multiple networks) in the US and approximately 45 within Canada who accept third-party advertising.
- Collectively, there are active media screens in more than 70 venue types each with unique audience and media characteristics to understand.
- The landscape will continue to aggressively grow in capacity and market coverage. More than one-third (38%) of active digital OOH network operators are planning capital investments of between $1M-$10M to expand their venue and screen capacity in the next 12 months. Just less than 20% of them plan on expanding their screen count to more than 1,000 each.
OOH Down in Q2
Though digital OOH advertising continues to grow, figures from the Outdoor Advertising Association of America for Q209 revealed that out-of-home revenue declined 18% for the quarter, from $2.2 billion in Q208 to $1.82 billion. Still, the organization believes that outdoor advertising is in “fine shape” is likely to recover from the recession more quickly than other forms of media.
About the report: Adcentricity’s 2010 Digital Out-of-Home Outlook & Planning Guide is? a compilation of market data, insight and a planning tool for agencies and marketers that provides a detailed breakdown of the DOOH advertising sector.