Out-of-Home Video Ad Spend to Reach $2.25B in 2011

January 3, 2008

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As digital, video and wireless technologies redefine the outdoor advertising sector over the next few years, outdoor will rank second only to internet advertising in ad spending growth, writes MediaBuyerPlanner, citing an eMarketer report.

Out-of-home (OOH) video ad spending is forecast to total $2.25 billion in the US in 2011, up from $1.26 billion in 2007.

“Outdoor advertising is bucking the trend,” said Ben Macklin, eMarketer senior analyst and author of the report, “Outdoor Advertising: A New Look.”

“While other traditional advertising sectors are struggling to adapt to increasingly fragmented audiences and changing media consumption patterns, the out-of-home advertising sector is actually reaping the benefits of the evolving media landscape.”

Out-of-home video advertising networks will comprise the largest component of what is described as the “alternative” out-of-home advertising sector. In 2008, OOH video ad spend will reach $1.5 billion, up 22% from 2007, eMarketer projects.

“Out-of-home video is a similar concept to narrowcasting. It’s video content and advertising distributed to captive audiences in such places as retail outlets, transit vehicles, office buildings, shopping malls, theaters, bars and restaurants, gas stations, hotels and gyms,” said Macklin.


According to InfoTrends, at the end of 2006, the North American narrowcasting industry was valued at $1.1 billion with an installed base of 630,000 screens at 97,000 sites. By 2011, total revenue is expected to reach nearly $2.6 billion, which corresponds closely with eMarketer’s projection for out-of-home video ad spend in the US.

The falling costs of flat panel LCDs, combined with the emergence of IP and wireless Internet technology are driving the out-of-home video advertising market, eMarketer said.


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