We did a mini round-up last week of a few industry executives to see how advertising is shaping up for 2012 in the digital place-based advertising sector after what was generally considered a poor Q4, 2011.
- “2012 is really looking good for us right across all our networks,” says Garry McGuire, CEO of RMG Networks. (RMG’s networks are grouped into three: Travel (airports, airlines, taxis, Amtrak); Fitness (health clubs); Retail (N.Y. Times, cafes, etc.) “We’ve already booked 60% of our annual 2012 budget. Our airline seatbacks are 85% sold out for the year. We’ve found more demand for upfront buying, which is something new for us.”
Asked whether the upcoming U.S. November elections and the current competition for the Republican nominee is playing a role, McGuire says that it’s helping because advertising on television is more limited and more expensive, so advertisers are looking for good alternatives, and DOOH and digital place-based media are filling that role.
- Dominick Porco, chairman and CEO of AdSpace Digital Mall Network says that QI 2012 is looking good, with an upswing of about 12% to 13%.
“We think the year will be good,” says Porco. “We had a great increase of about 39% in Q1 2011, but Q4 was absolutely terrible and it ruined our whole year. Q4 with the holiday period is usually good, so that was disappointing. But things are looking better and we anticipate a pretty good year for 2012.”
The economy in Q4, 2011, hit everybody across the board.
- “Q4 was challenging,” says Mike Di Franza, president and founder, Captivate Network. “But we’re seeing a definite pickup for 2012. Orders are on the uptick, and we’re anticipating double digit growth for Q1.
“I think we can put it down to three things: an improved economy; advertisers being displaced from other media due to election and pre-election advertising; and the growth and broader awareness and acceptance of the digital-placed media sector.”