• by Nina Lentini  @Nina_Lentini, May 1, 2007

Lifestyle trends that hamper the growth of traditional media are playing right into the hands of alternative out-of-home media, a new study shows, to create what is being dubbed "a perfect storm" for brand marketers who are looking for ways to engage consumers as they rush about in their daily lives.

Alternative OOH media includes video advertising networks and screens; digital billboards and displays, and ambient or place-based advertising such as floor pads. It seeks to connect with more elusive consumers in captive environments such as retail, transit, cinema and office locations.

PQ Media, a Stamford, Conn.-based provider of alternative media econometrics, which issued the survey report yesterday, said spending on alternative OOH media grew 27% to $1.69 million in 2006, and is projected to grow by 27.7% this year. Comparatively, the ad industry as a whole grew by 6.4% in 2006 and total OOH advertising grew by 10.6% (thanks to OOH).

"Leading brand marketers in general are either involved in or are looking to get involved in alternative media in general, and out-of-home media for several years now has been rejuvenated with accelerating growth," says Patrick Quinn, president/CEO of PQ Media.

"Americans are spending more time commuting, walking in urban areas, shopping malls, and waiting in lines. That's where these media reach."

The "PQ Media Alternative Out-of-Home Media Forecast 2007-2011" reports that alternative OOH has expanded at double-digit rates each year since 2001, posting compound annual growth of 22.6%.

Key trends driving the rapid expansion of alternative OOH media are:

• The perception among advertisers that these media provide high engagement, targeting options, proximity to point-of-sale, measurable impact and cost-effectiveness;
• Data indicating that exposure to and recall of these media is growing as Americans spend more time commuting to work, walking in urban areas, waiting in transit hubs, and shopping at retail outlets;
• Research suggesting that the vast majority of consumers view alternative out-of-home media as favorable and educational;
• New technology enabling companies to launch digital advertising platforms that generate higher revenues than the conventional formats they replace.

Video advertising networks is the largest segment, accounting for 60% of total spending, led by companies like National CineMedia, Premiere Retail Networks and Captivate Network. Spending on video advertising networks and screens grew 28% in 2006, to $1.01 billion, with high double-digit growth in all four markets--in-theater, in-office, in-store and in-transit.

Digital billboards and displays is the fastest-growing segment, as spending soared 55.4% in 2006, to $233.2 million. Each of the four markets--at-road, at-retail, at-transit and at-events--expanded at accelerated rates, fueled by companies such as Lamar Advertising, Clear Channel Outdoor, and Reactrix Systems.

Ambient advertising, also called place-based media, increased 14.1% in 2006, to $446.4 million, driven by leaders like Floor Graphics, Montage Billboards, and Alloy Media + Marketing.