PQ Media breaks down the digital OOH industry by two major platform segments and six venue/location categories:
Spending on U.S. digital place-based networks, the larger of the two platforms, grew 13.7% in the first half of 2010 and is accelerating in the second half, fueled by double-digit growth in four of the five venue categories, including the largest, cinema, and the fastest-growing, office, as well as entertainment and transit, according to the study.
Retail is pacing for high single-digit growth for the full year after posting the only decline among the five major categories in 2009. Total digital place-based network spending is expected to increase 14.0% to $1.53 billion for full-year 2010, following a 0.9% decline last year.
Digital Out-of-Home Ad Spending (USD, 2010)
First Half 2010 Spend
Full Year 2010 Est. Spend
Full Year 2010 Est. $
Digital Place-based Networks
Digital Billboard and Signage
Total Digital Out-of-Home
Source: PQ Media, December 2008
Digital billboard and signage spending jumped 18.2% in the first half of this year and is trending for full-year 2010 growth of 17.2% driven by double-digit growth in three of the four location categories:
Quinn concludes that "U.S. digital out-of-home media resumed its strong growth track in the first half of 2010 due to several key trends, including:
He continues "... research indicates the place-based network segment, in particular, will remain in the shakeout, or consolidation, phase... through at least 2011 and likely into 2012... "
And, according to figures released by the Outdoor Advertising Association of America (OAAA) the out of home advertising industry revenue rose 7% in the third quarter of 2010 when compared with the same period in 2009, accounting for $1.44 billion, the second straight quarter of growth. Year to date, out of home advertising revenues are up 3.3% over 2009.
OAAA President and CEO Nancy Fletcher, says "... the medium is better measured... marketers are spending money again... looking for cost effective ways to reach mass audiences."
The media and financial segments helped drive the increase, says the OAAA report. The financial category spending on out of home grew by a third compared to the same period a year ago.
Revenue estimates for the third quarter include billboard, street furniture, transit, alternative, and cinema advertising spending. In the second quarter of 2010, outdoor advertising revenue grew 3.6%, per the OAAA.