Digital Signage World's Second Fastest Growing Ad Medium

New market research from PQ Media suggests digital out-of-home media may be on the verge of a long-awaited industry breakout. Consumer digital out-of-home exposure is forecast to increase at a compound annual growth rate of 8.6% to 20 minutes on average per week in 2017, fueling higher spending on DOOH inventory and a 14.2% CAGR in operator revenues in the forecast period.

Traditional out-of-home revenues, meanwhile, will rise at only 4.1% CAGR over the next five years, as static billboards decline to 44 minutes weekly in 2017. Growth drivers will include rollouts of dynamic signage to replace lower-margin traditional displays, improved content, stronger measurement and tactics to boost engagement via links between DOOH messages and mobile and social media.

According to the study, Consumer Exposure to Digital Out-of-Home Media Worldwide 2014, the average global consumer was exposed to various DOOH media for 14 minutes per week in 2013, a 75% increase from only eight minutes in 2007. Key growth drivers included consumers spending a record amount of time with media outside their homes; increased engagement during the day with corresponding content on DOOH screens that are linked to wireless devices; longer work commutes; and consistent growth in leisure travel and shopping hours.

Consumer Out-Of-Home Media and Revenues

Media Sector

CAGR 2007-2012

2013e

Digital Out-of-Home

   Exposure

     Consumer average hours per week exposure to Digital OOH

0.23

     Year-to-Year growth

11.4%

7.2%

   Revenue

     Revenue $ in Millions

 

$8,878

     Year-to-Year growth

12.1%

12.6%

Traditional Out-of-Home

   Exposure

     Consumer average hours per week exposure to Traditional OOH

0.79

     Year-to-Year growth

-2.6%

-1.0%

   Revenue

     Revenue $ in Millions

 

$32,447

     Year-to-Year growth

-1.6%

4.3%

Source: PQMedia, March 2014

DOOH media is the second fastest-growing ad medium worldwide based on average weekly consumer exposure projected through 2017. DOOH trailed only mobile media in 12 of the 15 largest markets where exposure results were also compared with seven other ad media, including traditional OOH, television, radio, newspapers, magazines, internet and mobile.

In addition, the study indicates that improved designs, content, interactivity and mobile couponing are extending dwell time with screens. Collectively, these trends factored into the deployment of thousands of new digital signage networks in the 2007-13 period in the Top 15 Global DOOH Markets, concentrated in high traffic, captive and measurable locations, such as roadside, health care and transit.

Patrick Quinn, CEO, PQ Media, says "… DOOH exposure and revenues continue to grow at a time when ad media are increasingly challenged by crosscurrents taxing their ability to engage target consumers…"

More key takeaways, with regard to consumer exposure to digital out-of-home media

from the Executive Summary, include:

  • The US remains the world's largest DOOH market by revenues, and ranks fourth in consumer DOOH exposure behind Australia, the UK and Canada, all of which have high concentrations of people near a few major cities
  • US exposure increased nearly 20 minutes on average weekly to 47 minutes in 2013. Traditional OOH exposure averaged one hour more than DOOH, but declined 24 minutes since 2007. DOOH exposure will average 56 minutes per week in 2017.
  • Leading developed countries are rapidly approaching or have already topped the one-hour average weekly consumer exposure benchmark, as other major markets like the UK and Canada are forecast to reach the one-hour mark by year-end 2017.
  • Consumer digital out of home media exposure growth outpaced DOOH revenue growth, traditional OOH exposure and revenue expansion, overall ad industry growth, and GDP expansion throughout the 2007-12 period
  • Australia is the only nation in the world where consumers were exposed to digital signage & video networks for more than one hour per week in 2013, primarily due to a growing DOOH media industry in a country where 90% of the population lives near the largest cities
  • Of the 15 leading global markets, the study identified nine, including the US, in which the average consumer is exposed to DOOH at least 30 minutes per week via a range of venues and locations, including digital roadside billboards, at movie theaters, in airports, at gas stations, in healthcare venues, at malls, and in various entertainment venues, including arenas, fitness clubs and restaurants

For access to the complete forecast data in PDF format, please visit PQMedia here: http://www.pqmedia.com/consumerdoohmediaexposure-2014.html

Recommend (11) Print RSS
1 comment about "Digital Signage World's Second Fastest Growing Ad Medium ".
  1. Pat Smith from Omaha World-Herald , March 13, 2014 at 10:11 a.m.
    Interesting article. I have to wonder if the majority of the growth comes from the conversion of existing traditional billboards to digital format. So the growth is an indication of the transition of an existing media and not reflective of any shift in consumer viewing habits.