New York City-based MagnaGlobal—the strategic global media forecasting division of IPG’s Mediabrands—predicts in its 2011 Advertising Forecast that Digital Out-Of-Home (DOOH) advertising revenue will double to $5.2 billion by 2016. The comprehensive report, released Jan. 18, tracks and predicts adverting spend for television, internet, print, radio, and out of home media world-wide.
The report predicts the overall global advertising market to grow by 5.4% in constant currency terms (9.2% in dynamic currency terms, from a U.S. Dollar perspective) in 2011. The DOOH segment represents one of the highest growth areas in the entire market.
“Digital out-of-home will almost double in size, from $2.6 billion in 2011 to $5.2 billion in 2016 (a growth rate averaging 15.2% during that time).” according to the report. “Digital outdoor advertising is growing for relatively obvious reasons. The advent of inexpensive digital displays and cheap-to-connect networks has fostered an expansion in the number of outdoor surfaces available for commercial messaging which is inherently more flexible (in terms of time-of-day targeting or altering creative content) than historical applications of outdoor advertising. Further, these trends have enabled suppliers to develop inventory in new environments – new stores and more rural areas – much more cheaply than ever before. Interaction with mobile devices, especially with short code messages, has made the medium more engaging for consumers as well.”
Only two other media are expected to grow more rapidly: online video (19.6%) and mobile (19.4%). According to MagnaGlobal, DOOH will represent 9.7% of the total OOH market in 2011.