Commentary

Digital Out-of-Home Closing on Traditional by 2013

According to a new report from Adcentricity, published by Marketing Charts, projections from the "Digital Out-of-Home Outlook & Planning Guide" indicate that DOOH media spending will rise about 57% between 2009, when it reached $2.6 billion, and the 2013 $4.53 billion estimate.

Though final figures for 2010 are not complete, DOOH spending is predicted to reach $3.08 billion, an 18% year-over-year increase. This is projected to be followed by $3.56 billion in 2011 (15.5% YOY), $4.05 billion in 2012 (13.8% YOY), and about a 12% YOY increase in 2013.

US Digital Out-of-Home Media Spending (US$ Billions)

Year

Media Spend (Bil $)

2005

1.30

2006

1.70

2007

2.10

2008

2.40

2009

2.60

2010

3.08

2011

3.57

2012

4.05

2013

4.53

Source: Adcentricity, February 2011

While DOOH media spending is expected to reach $4.53 billion in 2013, traditional OOH spending is expected to hit $5.75 billion. This means DOOH will account for about 44% of all OOH media spending in 2013. Comparing the two figures, traditional OOH media spending will be about 18% higher than DOOH media spending.

Out-of-Home Media Spending, 2013 (US$ Billions)

Type

Projected Media Spend

% of Total Type

Traditional OOH

$5.75B

44%

Digital OOH

4.53B

56%

Total

10.28B

100%

Source: Adcentricity, February 2011

As a medium, DOOH reaches 67% of US residents aged 18 or older each month across the venues measured, and delivers a fairly representative cross-section of consumers. Of those who recall seeing digital out-of-home displays in the past month, 76% noticed seeing them at multiple venues.

Looking at the demographic makeup of audiences for the major DOOH venues covered by Adcentricity, most of them skew toward men, whites and younger adults. The only venues where the audience is not majority men are doctor's office/hospital, public transit/riding and movie theaters; in all three women hold a 51% majority. In contrast, men hold a majority as high as 64% in the elevator venue.

Making up the majority of the US population, it is not surprising that whites hold a clear majority in every venue. This reaches a high of 72% in the grocery store venue. Adults 18-44 represent a combined majority of the audience in every venue, as well.

While income statistics vary somewhat, adults earning more than $100,000 a year hold a higher percentage of the audience for every venue than adults earning $75,000 to $100,000 annually.

The telecommunications industry represented more than 50% of Q4 2010 US RFPs for digital out-of-home advertising by significant dollar volume, according to another recent report from Adcentricity, notes Marketing Charts. This category did not make an appearance in Adcentricity's top five in Q3 2010 and yet, based on Q4, heavily over-influenced the top-line numbers at the expense of other categories.

Music, games and entertainment scored the second spot, as Adcentricity research indicates TV tune-in messages and TV networks continue to increase their evaluations of the DOOH medium.

To access the report from Adcentricity, please visit here

1 comment about "Digital Out-of-Home Closing on Traditional by 2013".
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  1. Kelly Fleischmann from The Younger Agecny, March 3, 2011 at 2:23 p.m.

    San Diego has also seen a significant rise in our digital advertising program, it has been the most cost effective way to reach a broad audience that is affluent and has higher disposable income

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