PQ Media defines the global DOOH sector through two major platform segments, digital place-based networks (DPN) and digital billboards & signage (DBB), and six venue and location categories, including cinema, retail, office, entertainment, transit and roadside.
Worldwide DOOH revenues rose at a 13.5% compound annual growth rate (CAGR) from 2005 to 2010, propelled by the "gold rush" period earlier in the decade, in which operators rapidly introduced new DPNs and leading OOH companies replaced static billboards with digital versions.
Digital networks represented 78.2% of global DOOH revenues in 2010, declining by more than 10% since 2005 because of faster DBB growth, though revenues still grew to $5.06 billion in 2010, driven by a rebound in the global cinema category as well as comebacks in other venues including office, entertainment, retail and transit:
Among the challenges respondents expressed in the U.S. DPN segment, is the continued need for strong standard measurement, planning and buying systems, as well as better program content and advertising creative. In addition, the U.S. DPN landscape continues to be very fragmented, with 220 DPN operators running 468 networks in the U.S. at year-end 2010. The relatively few DPN operators offering national scale is also a challenge.
Most of the ad dollars spent on U.S. DOOH networks, says the report, are derived from agency OOH budgets, but some leading DPN operators and trade associations in recent years began targeting agencies' larger TV budgets, creating a major growth opportunity for DPN operators. Total OOH media's share of overall U.S. advertising revenue ranks near the bottom of the 16 leading global markets, according to the Study.
Quinn concludes that "The DOOH sector is viewed by most global agencies, brands... (and) DPN operators outside the U.S., as the evolution of OOH media... DPN's key advantage over traditional media... is that with strong program content and ad creative it can engage target consumers... to seed their next buying decision."
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