US Digital Out-of-Home Industry Continues Double Digit Growth

The US accounts for nearly 40% of global digital OOH spending, but its share will decline over the next several years, according to the Global Digital Out-of-Home Media Forecast 2008-2012.

Key international growth markets include Russia, India, China, Brazil, and Australia, among others, which will benefit from major trends such as emerging market potential for operators, greater brand acceptance, advanced technology and new measurement systems.

US spending on video ad networks, the largest segment, is on track to expand 8.1% in 2008 and will decelerate in 2009 before returning to double-digit growth in 2010.

Digital billboards remains the fastest-growing segment, albeit slower in 2008, posting growth of 28.2% and remaining in the 20% range through 2012.

Ambient ad platforms will grow 6.8% in 2008. This growth compares with expected low single-digit growth or outright declines in most ad-based media in 2008 and 2009, including newspapers, radio, broadcast TV and magazines.

US digital OOH spending grew 23.1% on a compound annual basis from 2002-2007, exceeding 20% growth each year of the period, PQ Media found.

Patrick Quinn, president & CEO of PQ Media, said: “”The current economic crisis and resulting advertising pullback have accelerated the seminal transition already taking place across the media landscape.

“This will likely be the first recession in which advertisers not only spend less, but also spend differently. Marketers for time immemorial have been searching for ways to influence consumers at critical points of decision. As a new integrated media solution emerges, we believe digital out-of-home media will be a key component of the new model.”

Magna recently released a downgraded global ad forecast estimating that outdoor ad spend would grow 5% in 2008 and 4.6% in 2009 (see Carat Revises Down Global Ad Forecast).