Thursday, November 12, 2009

Digital Out-of-Home Surges as Local Spend Shifts

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.

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