|
|
|
| |
Analysis by BIA/Kelsey indicates digital out-of-home (DOOH) advertising, which leverages spending trends toward digital media, hyperlocal, personalization and engagement metrics, is poised to be the next major growth area in local advertising. BIA/Kelsey forecasts DOOH advertising revenues to grow from $2.2 billion in 2009 to $3.7 billion in 2013, representing a compound annual growth rate of 13.5 percent. During the same period, traditional out-of-home (OOH) advertising revenues will only grow at a CAGR of 1.4 percent, from $4.4 billion in 2009 to $4.6 billion in 2013.
DOOH comprises digital billboards and place-based digital networks, which the Outdoor Advertising Association of America (OAAA) defines as follows:
-- Digital billboards are static roadside displays that rotate advertising messages every eight to 10 seconds.
-- Place-based digital networks are often indoors and positioned in commercial areas where groups of people congregate. Place-based digital networks carry both video content and static advertisements.
In a recent report on DOOH ("Digital Out of Home: Hyperlocal and Hyper Growth?"), BIA/Kelsey notes there are more than 2,100 outdoor advertising companies in the United States. The newer digital segment has more types of companies and is much less concentrated and faster growing than OOH. The OOH advertising industry is heavily concentrated with just three firms earning 85 percent of traditional billboard revenues. Billboards account for 66 percent of all OOH revenues. The remaining 15 percent of the market is highly fragmented.
"OOH is relatively easy to plan and buy since it is so concentrated," said Rick Ducey, chief strategy officer, BIA/Kelsey. "DOOH must get easier to plan, buy and measure in order to reach scale. With consolidation, partnerships and interoperable platforms, we see the buying process becoming more integrated, which will spur growth."
For more information at <http://www.bia.com>
|
|
 |
|
| |
|
|
|
