The Digital Out Of Home Landscape

Quick Stats:

• Traditional media spends are declining by 2-5% per annum and are turning to in-store and alternative media channels
• $1.3 billion North American market in 2005 (Source: Instrumental Media Group, 2005)
• Digital Out Of Home network revenues are projected to reach 300% growth or $3.7 billion by 2011 (Source: Frost and Sullivan, 2006)
• Hundreds of thousands of existing digital advertising screens growing to10,000,000 by 2012
• Digital advertising network revenues are expected to increase 35% year over year through to 2011 (Source: InfoTrends/CapVentures, 2005)
• Shopper marketing media budgets forecast to grow from 6% to 9% by 2011
• Over 2.5 million potential Digital OOH sites by 2012 = Enormous Reach

Digital Out of Home advertising (Also known as Digital Signage, Narrowcasting, Retail Media or Place Based TV) is a form of video based advertising in retail or “out of home” (OOH) locations.  It allows for targeted messages to reach large audiences with impactful and timely communications.  LCD Screens currently exist and are being installed in over 60 categories of venues and are forecast to grow to 10,000,000 units in the United States alone by 2011(1- source).

The Out of Home and Shopper Marketing industries have been growing at a rate which outpaces the growth in Internet advertising, powered largely by digital capabilities (21% DOOH CAGR vs. 15% Internet CAGR).  This ongoing growth at today’s cost effective prices can represent significant returns for early adopters.

As an entire medium, Digital OOH provides messaging frequencies difficult to achieve through other media for the same dollars.  Because of this, it serves as a valuable supporting media in almost any campaign, allowing for messaging reinforcement in areas where traditional media often has a difficult time connecting and delivering messaging or finding the accurate audience.

In addition, Digital OOH has enhanced reach, awareness, acceptance and recall as a medium, ensuring media purchases are efficient and effective.

The exponential emergence of Digital OOH networks is rapidly gaining attention from Advertisers and Media Buyers.  As an advertising landscape, Digital OOH has the power to support your existing campaigns from not only an extremely targeted, tactical approach but also supports a true strategic "mass media" influence as an overall medium:

Consider 1000 convenience stores with an audience of 500 people a day and you've effectively accessed a gross audience of over 15,000,000 people over the course of a month...and that's only a single venue and a small fraction of the locations available today.

As the landscape matures and continues to grow, the early marketing innovators and adopters accessing the Digital OOH medium stand to make terrific gains and carry early day learnings on to impressive sales and marketing gains over their competitors.