Amid a sharp downturn in global advertising spending and a decline in traditional out-of-home advertising in 2009, digital out-of-home media is among the fastest growing media in the world and will continue on an upward track in 2010, according to PQ Media, a provider of media econometrics.
Spending in the emerging media segment of digital out-of-home (OOH) is on pace to increase two per cent to $2.47 billion in the US in 2009, while digital OOH expenditures worldwide will grow 4.7 per cent to $6.69 billion, according to the third annual PQ Media Global Digital Out-of-Home Media Forecast 2009-2014. While the rate of growth in the U.S. and globally decelerated for the second consecutive year, PQ Media forecasts that digital OOH will grow at a compound annual rate of 9.4 per cent in the U.S. through 2014 and 10.1 per cent worldwide over the next five years.
Digital OOH media, which includes video advertising networks (VANs), digital billboards and alternative ambient ads, are being adopted by brand marketers because they engage target consumers in captive locations for extended periods of time. Spending in each of these media platforms increased in 2009, while spending in all but one venue category grew as well – led by VANs in-theatre and at-road digital boards, according to PQ Media. Strong secular trends impacting the broader media economy have had a positive impact on the digital OOH industry, as consumers spend more time outside their homes, commute longer to work, use ad-skipping technology and multitask with various media on the go throughout the day.