October 12, 2009

Outdoor advertising is feeling the pinch of the recession like all other media, but the small subsegment of digital out-of-home is an up-and-comer.

The “Digital Out of Home: Hyperlocal and Hyper Growth?” report from BIA/Kelsey indicates that digital out-of-home spending will increase at a compound annual growth rate (CAGR) of 13.5% from 2009 to 2013, versus 1.4% for out-of-home.

According to BIA/Kelsey, the digital out-of-home space remains fragmented, with advertising complicated to plan and buy. Better integration will be required before scale is reached and growth really takes off.

Similar to BIA/Kelsey’s forecast of $2.2 billion, PQ Media and Veronis Suhler Stevenson expect alternative out-of-home, which includes digital video screens and digital billboards, to grow 9.1% to $2.65 billion this year.

January–February 2009 data from Arbitron and Edison Research shows that digital out-of-home advertising reaches 67% of US adults every month.

The demographic profile of the digital out-of-home audience tracks closely with the characteristics of US adults as a whole. The greatest differences appear when the audience is broken down by age.

Arbitron found the biggest venue for digital out-of-home screens was shopping malls, with 31% of respondents reporting they had seen such an ad in the past month. Grocery stores and retail or department stores were not far behind, at 30% and 29%, respectively.

For more information at http://www.emarketer.com

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