Global DOOH Revenue Growth Continues to Accelerate

Global DOOH Revenue Growth Continues to Accelerate

Global Revenue for Digital Place Based Networks Grows 8.4% in 2013; Strong Gains By Transit and Healthcare

STAMFORD, CT — Digital out-of-home (DOOH) media will continue to see double-digit growth, according to the latest forecast by PQ Media. PQ Media’s latest report, Global Digital Out-of-Home Media Forecast 2014-18, found that key indicators for the first-half of 2014 are pointing to accelerated growth for DOOH media of 11.3% by year’s end. DOOH advertising spending has been boosted by a combination of global economic momentum, two sporting mega-events, and increased healthcare, political, and transit advertising spending.

According to PQ Media, both developed and emerging markets stuttered in 2013 due to challenges posed by debt issues, asset bubbles, political tensions and slower economic growth. Digital out-of-home (DOOH) media operators defied the economic and political headwinds worldwide grinding out a 9.3% revenue gain to $8.86 billion in 2013. These issues filtered down to ad-driven media, which also faced tough comparisons with 2012 as a result of the even-year boost from pivotal sporting and political events. Roadside digital billboards and cinema-based video networks, the two largest location categories, were the most affected verticals in 2013.

While global DOOH 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. 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, driven by higher engagement with newly launched DOOH networks, particularly during the Winter Olympics in Russia and the World Cup in Brazil.

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.

Asia-Pacific was the largest of the four global regions in 2013, with aggregate revenues of $3.83 billion, fueled by surging growth in Australia and a strong rebound in Japan. The US remained the world’s largest DOOH market, 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%.

Global Digital Place Based Media Faces Challenges

PQ Media’s forecast defines DOOH media by two major platforms, digital place-based networks (DPN) and digital billboards and signage (DBB). In addition, the forecast includes more than 10 key indoor/outdoor locations, including roadside, cinema, retail, transit, healthcare and entertainment.

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 global markets to post 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.

Although global revenue is on pace for faster growth in 2014, several challenges continue to shadow DPN operators, including issues related to standardized measurement, planning and buying systems, mobile media integration, and operator consolidation and its impact on network scale.

Mergers and Acquisitions Accelerating

“From the Americas to Asia-Pacific, financial transactions involving DPN operators continued unabated in 2013 and the first-half of 2014,” said Patrick Quinn, CEO, PQ Media. “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.”

Among the major M&A deals announced in 2013-14 were National CineMedia’s proposed acquisition of Screenvision; Captivate Network’s planned purchase of the Wall Street Journal Office Network; and Cineplex’s acquisition of EK3 Technologies. Notable equity investments included those involving Captivate, GSTV, Mood Media and Eletromidia. And while the enigmatic RMG Networks went public, the esoteric Focus Media went private.

Mobile and Digital Place Based Media

The rapid growth of mobile media has created the proverbial “frenemy” for DPN operators, as it has become imperative to 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. DPNs are already being squeezed by mobile, with brands increasingly demanding mobile components to their integrated media campaigns.

“To put this juggernaut into perspective, our research indicates that mobile media revenues from the US alone will be larger than the entire global DOOH industry by year-end 2014,” Quinn said, referring to data from PQ Media’s Global Digital Media & Technology Series.

Digital Billboards Revenue Rebounds

Meanwhile, DBB growth slowed for the second consecutive year in 2013, rising 11.5% to $2.6 billion. The sharp deceleration was mainly due to local government rulings that led to digiboards being shuttered in major metros, such as Los Angeles and Moscow. Nevertheless, OOH operators continue to transition static signs to digital for the simple reason that digisigns generate higher revenues and margins.

In addition, 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. For example, the increasing amount of soft money and third-party groups involved in US elections drove double-digit increases in political ad spending on OOH media in 2010 and 2012. DBBs were a key contributor due to their ability to tail

Free 10 Page Report Aimed at CMOs, Media Strategists, and Digital Place-based Network Operators Provides Insight Into Programmatic Buying Solutions for Digital Place-based Advertising

Programmatic systems have transformed the media buying process, enabling brands and their agencies to simplify and streamline the purchase of online audiences. While programmatic buying accounts for more than half of all online display purchases today, it’s still a relatively new concept for the digital place-based advertising space.

ScreenMedia Daily’s report examines the issues surrounding the planning and buying process for Digital Place Based media. Digital Place Based (DPB) media, also known as Digital Out-of-Home (DOOH) advertising utilizes strategically placed, networked digital signage displays to reach on-the-go consumers while they are outside their home with highly targeted messages. Digital Place Based networks typically broadcast targeted content along with advertising in venues that have high dwell time. DPB media is part of a larger multi-screen campaign planning ecosystem that includes mobile, desktop and television.

Programmatic Buying and Digital Place-based MediaThe report, Programmatic Buying and Digital Place-based Media, is aimed at CMOs, media strategists, and digital out-of-home operators, and provides insight into how programmatic buying solutions can help make the medium easier to transact.

Highlights from this report include:

•    Challenges in buying digital place-based media

•    Insight into programmatic initiatives aimed at making transactions easier

•    Q&A with industry thought leaders surrounding programmatic buying

Download your free copy here

The post Global DOOH Revenue Growth Continues to Accelerate appeared first on ScreenMedia Daily, the source for Digital Out-of-Home Media and Location-based Mobile Advertising News

Leave a Reply

Your email address will not be published. Required fields are marked *

 

400-101 exam 70-410 exam 200-120 exam MB2-703 exam 070-462 exam 70-462 exam 70-461 exam 070-410 exam JN0-102 exam 70-411 exam C_TADM51_731 exam C4090-958 exam 70-483 exam EX300 exam 070-461 exam MB2-702 exam 200-120 exam 400-101 exam 300-115 exam 100-101 exam 200-101 exam 70-410 exam 70-411 exam 70-680 exam 70-412 exam 100-101 exam 200-120 exam 200-101 exam ex200 exam 70-410 exam 70-411 exam 70-412 exam 70-480 exam 70-686 exam 70-680 exam y0-401 exam 70-410 test 70-412 test 70-411 test 70-461 test 400-101 test JN0-102 test 70-462 test 70-411 test 70-410 test 200-120 test MB2-703 test 640-554 test 700-505 test 70-457 test 70-460 test C2150-197 test EX0-001 test 100-101 test 200-101 test 700-701 test 98-367 test 77-881 test 70-688 test 70-683 test 70-680 test 70-663 test 70-579 test 70-642 test 70-642 test 400-101 test 70-410 test 200-120 test MB2-703 test 070-462 test 70-462 test 70-461 test 070-410 test JN0-102 test 70-411 test N10-006 test CAS-002 test 220-802 test JN0-102 test 1z0-146 CASP JK0-022 N10-006 CAS-002 2V0-621 200-120 300-101 70-410 70-411 sy0-401 sy0-401 vcp550 2v0-621d 2v0-620 200-120 MB2-703 070-462 70-462 70-461 070-410 JN0-102 70-411 70-410 C4090-958 70-483 EX300 070-461 MB2-702 MB7-702 220-802 400-101 646-206 700-501 70-480 C4040-108 MB2-701 070-411 100-101 70-410 220-801 220-802 ct0-101 ht0-201 000-109 117-101 1z0-599 1y0-a26 117-202 000-453 200-120 MB2-703 070-462 70-462 70-461 070-410 JN0-102 70-411 C_TADM51_731 C4090-958 70-483 EX300 070-461 MB2-702 MB7-702 220-802 400-101 646-206 700-501 70-467 EX200 M70-301 70-489 220-802 70-410 70-461 70-462 200-120 400-101 MB2-703 070-410 JN0-102 70-412 400-101 70-410 050-SEPROAUTH-02 200-120 MB2-703 070-462 70-462 70-461 070-410 JN0-102 70-411 C_TADM51_731 C4090-958 70-483 400-101 70-410 050-SEPROAUTH-02 200-120 MB2-703 070-462 70-462 70-461 070-410 JN0-102 70-411 C_TADM51_731 C4090-958 70-483 EX300 exam 070-461 exam C2030-283 C2090-540 C2180-278 400-101 70-410 050-SEPROAUTH-02 200-120 MB2-703 070-462 70-462 70-461 070-410 JN0-102 70-411 C_TADM51_731 C4090-958 70-483 EX300 exam 070-461 exam