The digital billboard industry is less than 10 years old, and just one-half of 1 percent of billboards are digital. However, the market is seeing the “perfect storm” of trends that are pointing to a banner year for digital billboard adoption.

 

The top 10 trends that will lead to increased sales of digital billboards in 2012 include:

 

1. Prices are falling 

More affordable LEDs translate to lower cost digital billboards. Prices are down nearly 20 percent in the last couple of years. This means that more billboard owners can afford a digital billboard.

 

2. Energy efficiency is improving 

In addition to the lower cost of acquiring a digital billboard, the cost of ownership has improved as well. Digital billboards can operate using far less energy because of improvements in the efficacy of LEDs. In two years, energy requirements for some digital billboards have been cut by more than half. 

 

3. Advertising has remained strong 

When other media suffered revenue drops during the economic downturn, advertisers continued to flock to digital billboards. One operator reports that while comprising just 4 percent of his inventory, digital billboards account for nearly 50 percent of revenue. 

 

4. Laws are getting friendlier 

Today, 41 out of 50 states allow digital billboards. The industry also is gaining ground in high-profile cities that support digital billboards, such as Dallas. This is due to the hard work of individual operators, manufacturers, well-organized state associations and the Outdoor Advertising Association of America.

 

5. Advertisers are more savvy

Advertisers are eager to take advantage of the flexibility of digital billboards. In particular, advertisers are enthusiastic about testing and using dynamic content to make ads more exciting and memorable. To drive engagement, advertisers are incorporating sports scores, news, radio playlists and text messaging, putting digital billboards on par with other forms of electronic media.

 

Photo courtesy of Watchfire

6. They’re not just for Mom and Pop 

National advertisers have recognized the potential of digital billboards, which also helps local advertisers. National advertising will increase as billboard networks become more mainstream.

 

7. They have a reliable track record 

Digital billboards have shown they’re resilient and extremely reliable, having weathered hurricanes, tornados and even fires. Since up-time means income to operators, digital billboards are getting noticed.

 

8. Love from Law Enforcement 

There are countless accounts of local, state and national law enforcement agencies that have touted the role that digital billboards have played in the capture of fugitives as well as the location of missing children. In addition, there has been a rise in their use for severe weather notifications and emergencies. Digital billboards have proven to be a valued addition to communities across the country. 

 

9. Software has evolved 

Software for creating and scheduling ads has improved. Now complex schedules, dynamic content and networking schedules are easy to handle. Diagnostic software also has improved, with some software able to pinpoint a problem down to an individual LED. This means better up-time for operators and advertisers.

 

10. Billboards are looking better, longer 

Digital billboards today, if calibrated correctly, will look nearly as good a decade from now as they do on installation day. Today’s color calibration methods virtually eliminate the tiling and quilting effects that plagued some early boards.