The most active DOOH advertisers in 2007 were CPG and electronic, followed by media and entertainment, food & drink, and retail. 66 percent of overall DOOH advertising spending comes from national brands, such as Pepsi, BMW, McDonalds and numerous other Fortune 500 companies.
Domestic spending in the category, which includes digital billboards and video advertising networks in transit, retail, offices, and movie theaters, reached $2.18 billion in 2007 and is expected to hit $2.4 billion in 2008. Digital billboards are the fastest-growing subsegment of the DOOH category, surging 44% in 2007 to $369 million, and expected to grow another 28% in 2008 to $473 million.
Global Digital Out-of-Home Media Forecast 2008-2012 | ||||||
| 2007($M) | 2008($M) | 2007Growth | 2008Growth | 2002-'07 CAGR | 2007-'12 CAGR |
Video Advertising Networks | $1,294 | $1,399 | 25.3% | 8.1% | 25.9% | 10.9% |
Digital Billboards | 369 | 473 | 44.6 | 28.2 | 36.3 | 24.3 |
Ambient Advertising | 525 | 561 | 11.9 | 6.8 | 12.8 | 7.2 |
Total U.S. DOOH | 2,187 | 2,432 | 23.9 | 11.2 | 23.1 | 12.1 |
Non U.S. DOOH | 3,224 | 3,673 | 21.7 | 13.9 | 21.3 | 15.3 |
Total Global DOOH | 5,411 | 6,105 | 22.6 | 12.8 | 22.0 | 14.0 |
Source: PQ Media |
All three segments of the DOOH media market, VANs, digital billboards, and ambient advertising (placed-based media), contributed to overall market growth (through 2007). Due to the shift in advertising budgets, DOOH media surpassed growth in other OOH media, such as static billboards, street furniture and transit, and in traditional media, such as television, newspapers and radio.
Digital billboards, including at-road, at-retail, at-transit and at-entertainment, is the fastest growing DOOH sub-segment, surging 44.6% in 2007 to $369 million. Growth was fueled by the rapid deployment of at-road signs in most DMAs, and increased interest in smaller digital signs in malls and concerts, and on moving vehicles.
The DOOH media industry is expected to grow 11.2% to $2.43 billion in 2008, decelerating from steady growth of more than 20% annually from 2002 through 2007. The market will experience a CAGR of 12.9% from 2007 to 2012, with overall spending reaching $4.01 billion in 2012.
According to PQ Media president and CEO Patrick Quinn, "DOOH has the power to engage consumers during captive moments for extended periods of time. Over time... it will become a key component of the media mix and take a huge bite out of traditional ad dollars in a post recession period."
Please find more about the forecasts and access to the Global Digital Out-of-Home Media Forecast here.