• by Erik Sass , Staff Writer @eriksass1, May 12, 2013

The digital out-of-home media marketplace grew at a nice clip in the first half of 2012, but then decelerated markedly in the second half of the year, according to the latest “Global Digital Out-of-Home Media Forecast 2013-17” from PQ Media. Happily, the growth rate appears to be picking up again in 2013, although PQ Media notes there are still a number of hurdles to be overcome.

Total global DOOH revenues increased 11.4% in 2012, to $7.88 billion, compared to a 15.2% increase in 2011, decelerating in the second half of the year due to economic headwinds in key markets like U.S. and China, which suffered a particularly sharp slowdown. China’s total DOOH revenues increased 15.8% to $1.72 billion in 2012, down sharply from a 39.2% gain in 2011.  

Despite China’s woes, Asia-Pacific was still the biggest region for DOOH, with revenues of $3.22 billion, representing 41% of the global total. Meanwhile Europe defied its economic doldrums to post the highest growth rate, jumping 15.9% to $1.82 billion due in large part to advertising associated with the Summer Olympics and Queen Elizabeth II’s Jubilee celebrations in Britain, which grew 25.7% to $725 million in 2012. The U.S. market posted a more modest gain of 7.4%, to $2.17 billion, as some ad dollars were siphoned off to TV budgets during the Olympics.

The report also breaks down the DOOH marketplace into two main segments, digital place-based networks and digital billboards and signage. Total revenues for DPNs grew 8.6% to $5.57 billion in 2012, with strong gains in transit and healthcare categories, while DDBs were up 18.7% to $2.31 billion, thanks to growth in transit and roadside displays.

In addition to economic uncertainty, PQ Media noted a number of structural issues hindering DOOH, including a fragmented environment with many competing networks and technology providers. PQ Media president and publisher Patrick Quinn stated: “For DOOH to succeed in the media ecosystem, emerging leaders must drive consolidation, scale, research and efficient processes, while positioning DOOH based on its targeting, flexibility and engagement.” But PQ still forecasts a respectable global growth rate of 12.6% in 2013, which would put them at around $8.9 billion for the year.