U.S. Still Largest Digital Out-of-Home Market; China Chases

According to a new report from PQ Media, the Global Digital Out-of-Home Media Forecast 2013-17, global DOOH revenues will grow at a slightly accelerated 12.6% in 2013, as global economies stabilize and DOOH operators move forward with expansion plans delayed in the second half of 2012.

While global DOOH revenues increased 11.4% to $7.88 billion in 2012, growth decelerated sharply in the second half due to significant downshifts in world economies and advertising markets. Global DOOH revenues grew at a compound annual rate of 12.1% from 2007 to 2012, although industry expansion was tempered by two consecutive years of decelerating growth in 2011 and 2012,

Patrick Quinn, President & Publisher, PQ Media, says “... key growth challenges continue to test this industry as it develops amid a slow economic recovery and intense competition for ad budgets... emerging leaders must drive consolidation, scale, research and efficient processes... “

The study defines DOOH by two platforms: digital place-based networks (DPN) and digital billboards & signage (DBB) with five DPN venue categories; and four DBB location segments.

DPN operators generated 70% of global DOOH revenues in 2012, growing 8.6% to $5.57 billion, the slowest growth since 2009. Strong revenue gains in the transit and healthcare categories, but slower growth in the retail and cinema venues, although cinema posted double-digit increases in Asian markets, such as China. Global DBB revenues increased at a strong 18.7% rate to $2.31 billion, outpacing DPN growth due to digital signage expansion at roadside and transit locations, according to PQ Media.  

The U.S. remained the world’s largest DOOH market in 2012, with $2.17 billion in operator revenues, followed by China at $1.72 billion and Japan with $789 million. China’s DOOH industry grew at a blistering pace from 2007 through the first half of 2012, gaining fast on the US, before cooling substantially in the second half, due to the economic and advertising slowdown.

U.S. DPN revenue growth decelerated for the second straight year, increasing only 4% to $1.40 billion in 2012, as cinema revenue inched up only 0.4%, according to the report. Excluding cinema, U.S. DPN revenues increased 6.8%, driven by transit and healthcare networks. U.S. DBB operators expanded revenue 14.2% in 2012, fueled by several hundred new roadside digital displays.

Asia-Pacific was the largest of the four global DOOH regions in 2012, generating $3.22 billion, or 41%, of total industry revenues, as it includes five of the 10 largest markets. The report says Europe was the fastest growing region in 2012, climbing 15.9% on advertising related to the Summer Olympics and the Queen’s Jubilee. Growth in the Americas slowed to 8.3%, due mainly to a sharp deceleration in the US market as TV ad spend on quadrennial events increased.

Russia was the fastest-growing DOOH market in 2012, rising 26.9%, while the UK (25.7%) and India (20.1%) exceeded 20% growth in 2012. Russia’s growth was driven partly by the integration of new technology to provide brands with proof of operation; The UK market by the influx of Olympics and Jubilee ads, as well as the strong expansion of transit networks.

For more information and access to the complete report, please visit PQ Media here.



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