DOOH Ad Revenues Forecast: $3.7B in 2013

Gail Chiasson, North American Editor

Digital out-of-home advertising is poised to be the next major growth area in local advertising, according to a report by BIA/Kelsey, a Chantilly, Virginia-based consultant in the local media space through consulting and valuation services, research, continuous advisory services, and conferences.

BIA/Kelsey forecasts DOOH advertising revenues to grow from $2.2 billion in 2009 to $3.7 billion in 2013, representing a compound annual growth rate of 13.5%. During the same period, traditional out-of-home advertising revenues will only grow at a compound annual growth rate of 1.4%, from $4.4 billion in 2009 to $4.6 billion in 2013.

In a recent ‘Digital Out of Home: Hyperlocal and Hyper Growth?’ report, BIA/Kelsey notes there are more than 2,100 outdoor advertising companies in the United States, while, it says, the OOH advertising industry is heavily concentrated with just three firms earning 85% of traditional billboard revenues.

“OOH is relatively easy to plan and buy since it is so concentrated,” says Rick Ducey, chief strategy officer, BIA/Kelsey. “DOOH must get easier to plan, buy and measure in order to reach scale. With consolidation, partnerships and interoperable platforms, we see the buying process becoming more integrated, which will spur growth.”

The outlook for DOOH is among the local advertising topics on the agenda at BIA/Kelsey’s upcoming conference, Interactive Local Media 2009, Dec. 9-11/09 in Los Angeles. The program features a session titled ‘Digital Out-of-Home: Expanding the Interactive Experience for the Consumer‘, which will cover the emergence of the ‘fourth screen’ for audience engagement through video screens at gas stations, on city buses, on roadside billboards, in-store, and in venues such as bars and restaurants, health clubs and public spaces.

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