Aug
14
Digital OOH Fortunes Revised Up?
Filed Under Advertising, Corporate, Digital Signage, digital ooh, metrics
VSS has an interesting piece in Media Life magazine that caught me by surprise.
Turns out OOH is the shiznit.
Not only is the OOH market growing, it’s growing faster than any stat I’ve seen, from the reports of $8.2 Billion in 2012 to $10.2 Billion in 2013. Huh? Where’d that extra $2 Billion come from???
Oh – wait…right…research & investment firms are actually starting to get their hands around how bloody big this (hidden) little gem of a market is. Something did seem a little wrong when reports of supply growth were 33% but no correlation to ad spend/demand existed.
And Digital OOH??? Well, it turns out that we were horribly wrong…it won’t be $3.9 Billion in 2012, It will be $4.5 Billion in 2013. Turns out Digital will make up for half of the OOH industry’s revenues by 2013. From the article:
Digital OOH spending will increase at a faster pace, with compound annual growth of 13.2 percent from 2008 to 2013. Total digital OOH spending will hit $4.53 billion in 2013, up from $2.6 billion this year, and accounting for 44.1 percent of all OOH spending.
What else is cool? Buyers are actually praising DOOH for the first time, albeit annonymously :
“Out of home has become such a flexible alternative, especially as the digital elements become more mainstream and/or available,” one buyer tells Media Life. “This flexibility allows the format to make sense for the quick turnaround necessary in these shorter planning periods.”
Look out TV & Internet – these strategy folks at agencies are starting to figure out that they can launch programs as fast with us as they can with you! Which makes us….what’s the word I’m looking for….right…essential… for ongoing communication programs
Something else I got a kick out of that sounded vaguely familiar:
Among the growing technologies will be systems that send coupons to mobile phones and GPS-based tools to steer consumers to advertisers featured in VAN ads.
…Not sure where I heard that before. 
The article is here
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One Response to “Digital OOH Fortunes Revised Up?”
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Hi Rob,
I was just reading your ‘rant’ about DOOH fortunes looking rosy, and essentially, yes, it’s all good news.
My concern about the future is more about how we manage the media to ensure its good health and subsequent growth.
I understand your company’s role in aggregating advertising and I’m sure that its having a positive effect. And I understand the concerns of network owners, who, faced with their big investment in the system, are keen to get their money back as fast as possible through selling ad space. But look for a minute at screens from the customers’ perspective. In some contexts, I’m sure that 100% ad-based content is welcome, if its informative. But the danger is that it can also be intrusive. Just when the customer thought that he was safe from TV advertising (by being ‘out of home’), zap, we hit him in the stores…
Just as TV programmes need short ad breaks to fund the programmes, screen-based media need short ‘content-breaks’ to make the advertising digestible. All successful ad-supported media (Radio, TV & Press) result from a healthy balance between editorial and advertising. No one would listen to a Radio or watch a TV station that was 100% ads…
My entry into the DOOH market was prompted by a European operator who was desperately searching for some video content to lighten up their programming. At first, I was just responding to one customer’s request, but as I looked into it further, I realised that this was an industry-wide problem, and so I set up our agency in response.
We supply video content with all rights cleared for DOOH (as well as internet & mobile phone applications) We aim to be a resource for the industry and we now form part of the ‘eco-system’ (as Adrian Cotterill so prosaically puts it).
My main concern is to preach to the industry the importance of diversity in digital screen programming, whether it by live TV streams, other feeds or custom created content (anything but please, NOT a TV channel…!)
So let’s not squander the opportunity of a rosy future that the agency strategists are predicting for us and lets’ deliver a viable alternative media that can live up to their expectations…!