DOOH Ad Spend Up 14.9% In H1 2010
Gail Chiasson, North American Editor
Preliminary data shows that U.S. digital out-of-home advertising spending, including digital place-based networks, billboards and signage, grew 14.9% in the first half of 2010 and is on pace to grow 14.8% for the full year to $2.07 billion, Patrick Quinn, PQ Media CEO, told attendants at Customer Engagement Technology World/Digital Signage Show last week in New York City.
Stamford, Connecticut-based PQ Media will launch its full fourth edition of its Global Digital Out-of-Home Media Forecast 2011-2015 on Feb. 22 at the Digital Signage Expo in Las Vegas, where Quinn will be keynoting the Digital Out-of-Home Advertising Summit. PQ Media’s new Digital OOH Forecast will include 2010 year-end actuals for the U.S. and global markets, five-year forecasts, historical perspective, and a wealth of other data and analytics by platform, venue category and country, among others.
PQ Media breaks down the digital OOH industry by two major platform segments and six venue/location categories.
Spending on U.S. digital place-based networks, the larger of the two platforms, grew 13.7% in the first half of 2010 and is accelerating in the second half, fueled by double-digit growth in four of the five venue categories, including the largest, cinema, and the fastest-growing, office, as well as entertainment and transit, according to PQ Media. Retail is pacing for high single-digit growth for the full year after posting the only decline among the five major categories in 2009. Total digital place-based network spending is expected to increase 14.0% to $1.53 billion for full-year 2010, following a 0.9% decline last year.
Meanwhile, digital billboard and signage spending jumped 18.2% in the first half of this year and is trending for full-year 2010 growth of 17.2% to $541 million, driven by double-digit growth in three of the four location categories, particularly the largest and fastest-growing, roadside, followed by transit and entertainment, according to PQ Media. Retail is pacing for mid-single-digit growth for the full year.
“U.S. digital out-of-home media resumed its strong growth track in the first half of 2010 due to several key trends, including shifts in consumer behaviors, improved audience metrics, more effective sales and marketing strategies, growth in key brand categories, consolidation and better scale, new technology, and the integration of mobile and social media,” said Quinn. “Our research indicates the place-based network segment, in particular, will remain in the shakeout, or consolidation, phase that every successful new medium must endure through at least 2011 and likely into 2012. But this is good because it will defragment the industry and create a stronger set of leading operators with better content, scale and metrics.”
PQ Media’s research methodology includes a proprietary set of media spending and consumption databases across all 20 major segments and over 100 sub-segments of the media and entertainment industries, as well as the firm’s exclusive Global Opinion Leader Panel. This panel consists of several hundred top executives at leading media companies, financial institutions, ad agencies and brands worldwide.
PQ Media’s digital OOH methodology, databases and panel track 267 digital place-based network operators and 117 digital billboard and signage operators in the U.S. alone.
PQ Media is the leading provider of media econometrics and pioneer of emerging media research. PQ Media partners with private equity firm Veronis Suhler Stevenson on the renowned VSS Communications Industry Forecast series, the industry’s annual benchmark for spending, usage and trends data.
Follow DailyDOOH