Digital out-of-home ad spending to grow 2% this year: PQ Media

Share this content:

Digital out-of-home media spending in the US will increase 2% year-over-year to $2.47 billion for 2009, according to a study by PQ Media released this week. However, that growth is muted compared to recent years: In 2008, the segment grew 9.2%; and in 2007, it expanded by 24.3%.

“They had had such success during the ‘gold rush' period when the mentality was, ‘If I put up a screen, they will come,'” said Leo Kivijarv, VP of research at PQ Media. “Growing by 2% was a wake-up call to the industry. That said, when you compare it to [other] ad vehicles out there, at least they were one media to generate growth.”

The media research firm, in its PQ Media Global Digital Out-of-Home Media Forecast 2009-2014 report, predicted digital out-of-home spending will grow at a compound annual rate of 9.4% in the US through 2014 and 10.1% worldwide during that time.

US spending on video ad networks, the largest out-of-home segment, is expected to expand by 1.2% this year. PQ Media forecasts a 5.7% growth rate for the segment next year. Digital billboards are the fastest growing out-of-home segment, with predicted spending growth of 9.1% for 2009 and a compound annual growth rate of 31.4% during the 2004-to-2009 timeframe. Digital billboards are expected to grow by 13.2% next year.

Worldwide, spending on the channel is expected to grow 4.7% to $6.69 billion this year. Global growth will be driven by the Asia-Pacific and Latin America markets, according to the report.

Kivijarv said as advertising spending rebounds slowly and the country comes out of the recession, digital outdoor advertising will retain some advantages over other forms of marketing.

“Digital out of home will do better than most media,” he said. “It's impervious to ad-skipping technology, it has high engagement and, in many instances, it reaches target audiences.”

close

Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above