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Not Enough Digital Outdoor Billboards?

There aren’t enough digital outdoor boards to interest major advertisers like Procter and Gamble [1], says Alan High, president and general manager, Clear Channel Spectacolour [2] and Mall Divisions.

[3]High told the Scala [4] Connected Signage Conference audience in Philadelphia this week that, while the outdoor industry’s advertising is about 60% local-40% national, advertising on digital billboards is about 96% local because of their lack of critical mass.

“There are only about 2,700 digital outdoor boards across the U.S. out of a total of about 60,000 outdoor boards,” High said. “The big guys don’t buy much outdoor as it is, but they want national coverage.”

Those figures garnered a lot of discussion after High’s discourse on the revenue roadmap for digital signage.

High said that the total DOOH industry in the U.S. is between $1.5 billion and $2 billion, with more than 200 networks, 900,000 displays and a 20% growth rate.

“About 40% of DOOH networks are completely revenue dependent and another 20% are partially revenue dependent, meaning that over 50% of DOOH networks, or upwards of $1 billion, are being funded by advertising,” High said.

Among the positive factors affecting revenues are:

But on the negative side, he said:

“As you become more revenue dependent, the bigger the risk,” said High, who gave the audience dozens of questions to mull that can affect revenue such as: What do you want to quantify and qualify? Is the location quiet or noisy? Do you have a transient audience? Is there venue competition? Are there legislative restrictions?

“Keep in mind that landlords overvalue real estate,” he said. “And don’t forget to factor in equipment replacement, wear-and-tear, and changes in technology.”

Along with giving a great view of the variables affecting revenue, High said that the industry should strive for standardization as being promoted by the Digital Place-Based Advertising Association [5], as well as “research big time”, as also being pushed by the DPAA.

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1 Comment To "Not Enough Digital Outdoor Billboards?"

#1 Pingback By USA Lagging Behind in Outdoor Digital Signs » » LCD-enclosure.com On 6 June 2011 @ 13:57 @623

[…] the United States, however, things are a lot different. Out of about 60,000 outdoor billboards, only an estimated 2,700 of these are digital—less than five […]