According to the PQ Media recently released annual performance benchmark, global DOOH revenues are pacing for 11.3% growth in 2014 to $9.87 billion, with double-digit growth projected through 2018. DOOH revenues will post a 12.4% CAGR in the 2014-18 period, reaching $15.92 billion.
Digital out-of-home media operators showed a 9.3% revenue gain to $8.86 billion in 2013. Key first-half indicators point to DOOH growth accelerating to 11.3% in 2014, boosted by the global economy gaining momentum, two sporting mega-events, and increased healthcare, political and transit ad spend, says the new Global Digital Out-of-Home Media Forecast 2014-18.
PQ Media defines DOOH by two major platforms, digital place-based networks (DPN) and digital billboards & signage (DBB); and more than 10 key indoor/outdoor locations, including roadside, cinema, retail, transit, healthcare and entertainment.
Both developed and emerging markets stuttered in 2013, due to myriad challenges posed by debt issues, asset bubbles, political tensions and slower economic growth in high-flying markets like China. Roadside digital billboards and cinema-based video networks, the two largest location categories, were the most affected verticals in 2013.
While global revenue growth decelerated again in 2013, consumer exposure to DOOH increased at the same rate as in 2012, rising 7.2% to an average of 14 minutes per week, estimates PQ Media. Key growth drivers included new deployments and the expansion of existing DOOH media in high-traffic areas of the world’s largest cities. Average consumer exposure is pacing for accelerated 9.5% growth in 2014.
DPNs generated 71% of global DOOH revenues in 2013, growing 8.4% to $6.26 billion, a slight deceleration from 2012. Slow-moving economies weighed on cinema, the largest DPN vertical, resulting in several top 15 Global Markets posting revenue declines. Global cinema networks had the worst year in recent memory produced the weakest years on record, although some slack was picked up by US cinema nets, which had their best year since 2010, as well as strong gains by transit and healthcare DPNs.
Patrick Quinn, CEO, PQ Media, says “From the Americas to Asia-Pacific, financial transactions involving DPN operators continued unabated in 2013 and the first half of 2014. A diverse group of deals were consummated across the vertical spectrum, including cinema, healthcare, corporate and transit networks, reaffirming that consolidation is accelerating and likely to churn for several more years.”
The rapid growth of mobile media makes it imperative that DPNs integrate mobile technology into ad campaigns, particularly those aimed at post Boomer generations. Driving consumer engagement through mobile interactivity will only become more important with each passing year, says the report. DPNs are being squeezed by mobile, with brands increasingly demanding mobile components to their integrated media campaigns.
Quinn said “… to put this juggernaut into perspective, the research indicates that mobile media revenues from the US alone will be larger than the entire global DOOH industry by year-end 2014… “
Digital screens placed in and around transit hubs, sporting venues and busy roadside locations have become must-buys for brands during major sporting events and political campaigns because they reach on-the-go consumers with a combination of dynamic ads and real-time results. PQ Media expects ad spending trends to spur DBB revenue growth of 15.7% this year to $3.01 billion.
The US remained the world’s largest DOOH market, says the report, with $2.37 billion in revenues, followed by China at $1.87 billion. The injection of ad spending and new deployments ahead of the World Cup helped Brazil’s DOOH industry grow at the fastest rate, rocketing 41.9%, followed by Australia at 23.6%.
US DOOH media revenues rose at an accelerated 8.7% in 2013, driven by strong growth in healthcare nets, which benefited from new ad dollars related to the Affordable Care Act. DPN revenues increased 9.5%, as the transit and entertainment categories joined healthcare to offset slower growth in retail and cinema. US DBB revenues were up 7.2% in 2013, the lowest growth rate since PQ Media began tracking DOOH.
Digital Billboards & Signage (DBB): Communicate primarily advertising-only messages through screens equipped with LED or LCD technology. Ads are often changed at predetermined times to showcase multiple brands and to target audiences during specific dayparts at various locations, including roadside, transit, entertainment and retail.
Digital Place-based Networks (DPN): Integrate contextually relevant entertainment, informational and/or educational programming with advertising messages narrowcast through digital video screens to engage consumers in relatively captive venues. Consumers often spend extended periods of time in these venues, including cinemas, retail outlets, healthcare and professional offices, entertainment and education locations, and various transit hubs and vehicles. DPNs and digital billboards & signage together are referred to as digital out-of-home media (DOOH).
And, to those for whom this information is particularly relevant, the report included a summary of both the major DBB and DPN categories:
DBB and DPN Location Categories
Corporate & Healthcare
Entertainment & Education
Bars & Restrooms
Concerts, Fairs & Festivals
Fitness Centers & Spa
Hotels & Motels
Leisure Sports (Golf, Ski, etc.)
Quick Service Restaurants (QSR)
Resorts o Sponsored Events
Sporting Arenas & Stadiums
Malls & Food Courts
Specialty (Auto, Games, Salons, etc.)
On Buildings & Holographs
Highways & Exit Ramps
Buses & Stations
Subways, Stations & Tunnels
Trains & Stations
Trucks & Trailers
For more information from PQMedia, and access to the free, complete report, please visit here.