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
Consumer average hours per week exposure to Digital OOH
Revenue $ in Millions
Consumer average hours per week exposure to Traditional OOH
Revenue $ in Millions
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:
For access to the complete forecast data in PDF format, please visit PQMedia here: http://www.pqmedia.com/consumerdoohmediaexposure-2014.html