Digital OOH Media Revs Soar 24.5% in 2010

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2010 was a blockbuster year for digital out-of-home media, according to official figures compiled by Miller, Kaplan, Arase and released by the Digital Place-based Advertising Association.

Total advertising revenues jumped 24.5% to $1.1 billion last year, according to the DPAA, which noted the huge improvement over 2009. Then, total revenues were basically flat with a mere 1% increase, due mostly to the broader economic downturn.

The 2010 increase made DO the fastest-growing medium in percentage terms, the DPAA claims -- beating out spot TV (24.2%), national spot radio (18.6%) and Internet advertising (9.9%), among others. The growth is especially noteworthy because -- unlike spot TV and radio -- DO is unlikely to have benefited much from political advertising for the 2010 midterm elections.

In short, the expansion probably reflects a long-term organic increase.

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While the DPAA figures are retrospective, other organizations have produced equally optimistic forecasts for DO growth over the next few years. Most notably, PQ Media's "Global Digital Out-of-Home Media Forecast 2011-2015," released in February, said global DO revenues grew 16.3% from $5.56 billion in 2009 to $6.47 billion in 2010.

PQ Media expects them to grow another 16.9% in 2011, to $7.56 billion.

In the report, PQ Media distinguishes between two major categories within the DO marketplace: digital place-based networks, which typically display video content and advertising, and digital billboards, which display a mix of static and video-animated digital ads. Overall, the first category -- DPN -- saw global revenues increase 14.5% from $4.41 billion in 2009 to $5.06 billion in 2010; PQ Media expects global growth of 15.2% in 2011, to $5.83 billion.

Global digital billboard revenues grew 23.2% from $1.14 billion in 2009 to $1.41 billion in 2010, and are projected to grow another 23.1% in 2011 to about $1.74 billion.

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