While the Internet is still
the fastest-growing medium with a 15.7% increase in 2013, digital out-of-home video isn’t far behind. Total advertising revenues increased 13% from $840 million in 2012 to $950 million in 2013,
according to new figures from the Digital Place-based Advertising Association.
That puts it in the second spot in terms of growth rate, ahead of cable TV at 7.3% and outdoor advertising
overall at 4.4%, according to Kantar Media.
Looking ahead, DPAA cited projections from MyersBizNet forecasting a 12.6% increase in DOOH advertising revenues in 2014, to $1.07 billion.
When cinema advertising is included -- depending on which definition of DOOH is being used -- total revenues should reach $1.9 billion in 2014, per the same Myers projection.
Frey, president and CEO of the DPAA, echoed the pitch that many media buyers have been hearing from DOOH ad sales reps angling for a share of TV ad dollars: “In today's ‘Video
Everywhere’ world, marketers need a presence on all screens and not just television. Digital place-based media has emerged as an important element of this video media mix because of its ability
to reach on-the-go consumers, often at or near point-of-purchase.”
A separate study from PQ Media recently found that global consumer exposure to digital out-of-home media
increased 75% from eight minutes per week in 2007 to 14 minutes per week in 2013. According to PQ Media, key drivers of DOOH growth included consumers spending more time with media away from home;
increased engagement with DOOH screens linked to wireless devices, longer work commutes, and more time devoted to leisure and shopping.
Turning to the future, PQ Media forecast that
DOOH exposure is projected to increase at a compound annual growth rate of 8.6% in coming years, reaching 20 minutes per week in 2017. That, in turn, should fuel a 14.2% cumulative annual growth rate
in DOOH revenues over the same period.