Thus DO is expected to grow at a rate roughly three times the rate for the media business overall, which Magna sees growing at between 5%-5.5% from 2011-2016. DO will help drive the strong growth rate for the broader out-of-home advertising category in general, which Magna expects to grow 7.9% in 2011. From 2011-2016, total DO advertising revenues will double from $2.6 billion to $5.2 billion, while total out-of-home advertising revenues will increase 46.8% from $26.3 billion in 2011 to $38.6 billion
Focusing on specific regions, Magna sees out-of-home revenues growing fastest in Asian countries including South Korea, India, China, and the Philippines -- but DO is just part of this upsurge. The same forecast expects conventional, static billboard, transit, and other kinds of traditional out-of-home to grow at an annual rate of 6.8% during this period. The increase in conventional billboard revenues is attributed to the proliferation of new advertising surfaces on the sides of buildings, as well as more sophisticated management of ad inventory on public transit systems.
Cinema advertising will be another strong growth area over the next couple years, according to Magna, which forecasts an 8.8% growth rate in 2011 followed by annual growth rates ranging from 8%-10% through 2016. In dollar terms, that means total (global) cinema ad revenues will grow from $2.6 billion in 2010 to $4.4 billion in 2016.