US Top Digital Out-Of-Home Market in 28 Countries

by Jack Loechner, Jun 8, 2012, 6:53 AM

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According to the Global Digital Out-of-Home Media Forecast 2012-2016, by PQMedia, total global DOOH revenues, generated by digital place-based networks, billboards and signage operators, increased 15.3% to $6.97 billion in 2011, driven by double-digit growth in both the APAC and Americas regions, the largest and fastest-growing DOOH regions.

Expansion into new venues and markets, enhanced features, and mobile and social media tie-ins fueled double-digit growth in the global digital out-of-home industry in 2011, making it one of the fastest-growing and vibrant advertising media in the world. Excluding the cinema venue, which is considered a traditional medium in many countries and is therefore vulnerable to weak economic conditions, global DOOH revenues surged 25.4%. Global DOOH generated 17.6% of worldwide OOH advertising revenues in 2011.

Global Digital Out-of-Home Media – Historical Revenues ($ Millions, rounded to closest million; CAGR 2006-2011)
Region	2006	2011	CAGR
Americas DOOH	$1,257	$2,472	14.5%
Asia Pacific DOOH	$1,173	$2,814	19.1%
Europe DOOH	$1,157	$1,575	6.4%
Middle East & Africa DOOH	$87	$101	3.0%
Total Global DOOH	$3,673	$6,969	13.7%
% Share of OOH	10.5%	17.6%
Source: PQ Media, April 2012

The APAC region expanded 21% to $2.81 billion in 2011, driven by double-digit growth in the largest market, China. The Americas ranked second in terms of total size and 2011 growth, with revenues up 12.8% to $2.47 billion, due to strong growth in the second-largest market in the Americas, Brazil, as well as solid gains in the third-largest market, Canada.

Strong growth in Brazil and Canada offset slower gains in the US, the largest market in the Americas. Europe generated $1.58 billion in total DOOH revenues, up 10.6%, fueled by the largest market, the UK, and emerging markets, such as Russia, which posted the region’s strongest growth.

Revenues from global digital place-based networks (DPN) exceeded revenues from digital billboards, but DBBs grew at a faster pace. DPN revenues advanced 11.8% to $5.09 billion in 2011, driven by double-digit growth in the APAC region. The other regions exhibited only single-digit gains during the year.

DBB revenues grew 26% to $1.88 billion, fueled by strong growth across all four regions. While APAC was the largest DBB market in 2011, Europe generated the strongest growth at 29%. Europe is experiencing a faster rate of new deployments than APAC, due in part to the upcoming London Olympics. In addition, the APAC DBB market faced a setback in 2011 when the tsunami in Japan destroyed signage and advertiser inventory.

The US is the largest DOOH market among the 28 countries tracked for this report, with $2.05 billion in revenues in 2011. China ranks second with $1.44 billion in revenues, followed by Japan with $759 million. Although the US has the largest DOOH market, DOOH revenues represent less than 30% of the OOH market in the US. Thailand’s DOOH market represents nearly 50% of Thailand’s OOH market, the highest percentage among the 28 countries ranked. Brazil follows with 33%.

2011 Digital Out-of-Home Media Revenue Rankings by Market
Market	Revenue ($Millions)
United States	$2,046
China	$1,438
Japan	$759
United Kingdom	$549
Germany	$272
Thailand	$180
France	$158
Brazil	$155
Australia	$147
South Korea	$121
Canada	$102
Italy	$81
Russia	$73
South Africa	$66
Source: PQ Media, April 2012

US DOOH operator revenue increased 11.1% to $2.05 billion in 2011, driven by strong double-digit growth among DBB operators and high single-digit growth from DPN operators. The overall US DOOH industry expanded at a CAGR of 14% in the 2006-11 period.

United States DOOH – Historical Revenues (US$ Millions, rounded)
DOOH Platform	2006	2011	CAGR
Digital Place-based Networks	$844	$1,405	10.7%
Digital Billboards	$218	$641	24.1%
Total US DOOH	$1,062	$2,046	14.0%
% Share of Total OOH1	4.6%	29.3%
Source: PQ Media, April 2012

Growth was hindered by slower ad spend in all five venue categories, particularly cinema. Revenues increased at a CAGR of 10.7% from 2006 to 2011, driven by double-digit upside in the corporate & healthcare, entertainment & education, and transit categories. US DBB revenues increased 20.4% to $638 million in 2011 and posted a 24% CAGR in the 2006-11 period, fueled primarily by strong double-digit growth in the biggest location category, roadside.

GDOOH revenues are expected to increase 19.2% in 2012 to $8.30 billion, as DOOH operators expand DPN networks to new venues and markets, install DBBs in more locations, and incorporate enhanced and interactive features. US DOOH revenues are expected to grow 12.5% to $2.3 billion in 2012, driven by double-digit growth in both the DPN and DBB segments.

For additional information from PQ Media, and access to the complete report and Executive Summary, please go here.

 

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