Source : BIA KELSEY  

Digital out-of-home (DOOH) spending is expected to increase at an annual rate of 13.5% annually, from $2.2 billion in 2009 to $3.7 billion in 2013, according to a new report from BIA/Kelsey, which confirms that the medium will far outpace traditional out-of-home’s 1.4% growth. Traditional OOH is expected to grow from  $4.4 billion this year to only $4.6 billion in 2013, BIA Kelsey said.

Integration to Drive Growth

Growth of DOOH - which comprises digital billboards and place-based digital networks - will be driven as the buying process becomes more integrated, making it easier for advertisers to purchase DOOH and reach scale, writes MediaBuyerPlanner. Currently, DOOH represents a serious challenge to media buyers. There are more than 2,100 outdoor advertising companies in the US, but just three firms earn 85% of traditional billboard revenue. The newer digital segment has more types of companies and is much less concentrated than traditional OOH. The report noted that billboards account for 66% of all out-of-home revenues, while the remainder of the market is highly fragmented. In terms of the breakdown by type of ad for all of OOH in 2008, 73% were local ads, 18% were national ads and 9% were public-service ads.

Digital Shift Mirrors Overall Ad Market

This shift to digital in the OOH area is part of the larger shift to digital in ad spending overall.  BIA Kelsey reported that the compound annual growth rate (CAGR)  for all digital advertising media is forecast at 18% between 2008-2013, while the expected CAGR for traditional advertising is expected to be -4.5% during the same time period. Though OOH revenues are expected to decline from a total of $6.9 billion in 2008 to $6.8 billion in 2009, ZenithOptimedia’s latest projection forecasts that outdoor, along with TV and cinema, will return to positive growth in 2010.