Rapid economic growth and the clear advantages of variable, interactive digital signage have combined to produce a digital out-of-home boom in China, according to a new global overview of the DOOH marketplace from Kinetic. The overview, titled “Global digital out of home handbook 2011,” also contains forecasts for DOOH advertising in the U.S., Europe, and Asia.
China is the clear leader in DOOH advertising, according to Kinetic, which pegs total Chinese DOOH revenues at $1.835 billion in 2011 -- handily beating the U.S., with total DOOH revenues of $1.1 billion. Both China and the U.S. are trailed by other countries, with DOOH revenues in Britain coming to just $157 million, followed by Germany at $51 million and Thailand at $24 million.
China also leads in the proportion of total out-of-home advertising spending that goes to DOOH, at 36%, compared to 19% in the older and more established U.S. out-of-home market. Unsurprisingly China is also one of the fastest-growing markets, with DOOH spending up 30% in 2011 compared to 2010.
While Chinese adoption rates may be spectacular, the actual execution of DOOH campaigns often leaves something to be desired, according to Kinetic, which diplomatically notes: “Digital represents a huge part of the market in China, however there is room for improvement with regards to quality.” Kinetic explains: “The screens allow an almost unlimited number of advertisers and the locations aren’t always great. Interestingly enough, most Chinese clients use digital screens in the same way as a static poster -- so flash creatives are very rare.”