• by Joe Mandese  @mp_joemandese, November 10, 2009

Defying the effects of the global economic recession, spending on digital out-of-home media expected to grow 2.9% in 2009 to $2.45 billion, according to new estimates being released today by media industry economists PQ Media. While that represents a deceleration form the 9.4% rate of growth that digital out-of-home had in 2008, it nonetheless represents an expansion during a time when the overall media and advertising industries are receding.

Based on the new stats, PQ estimates that digital media will now represent more than a third (33.8%) of the overall out-of-home media marketplace in the U.S. That's up from 19.6% in 2004.

Digital billboards have been the fastest growing segment of the market in 2009, and is projected to rise 11.1% to $511 million. While that is a deceleration from the 23.7% gain in 2008, it is still a double-digit gain for the year.

Video-based advertising networks are expected to remain the largest digital out-of-home media category in 2009, reaching $1.41 billion, inching up 1.6% during the year after a 7.6% gain in 2008, and rising at a 17.2% compound average annual growth rate from 2004 to 2009.

But digital billboards will remain the fastest growing segment going forward, climbing at an 18.2% average annual rate between 2009 and 2014, while video advertising networks will remain the largest segment, reaching $2.27 billion in 2014.

Among the fastest growing categories during the 2009-2014 forecast period are at-road digital billboards (+24.8% annually), in-office video advertising networks (+17.4%) and in-entertainment video advertising networks (+14.3%), with the latter two categories propelled by the perceived value added metric of longer dwell time in a captive location versus glance engagement in a transient location of other digital out-of-home media options.