Global digital out-of-home (DOOH) media revenues are on pace to grow 13% to a projected $13.4 billion in 2017, while US DOOH advertising sales are advancing at a 10% rate to an expected $3.2 billion for the full year, according to pacing data through July 31 released today by PQ Media.
Meanwhile, consumer exposure to DOOH media platforms across all indoor and outdoor locations worldwide continues to expand at higher velocity than overall time spent with media. Despite the absence of major global sporting events, political campaigns and national celebrations, consumer exposure grew 9% to a weekly average of over 20 minutes for the January-July period, according to PQ Media’s Global Out-of-Home Media Forecast 2017. US consumer DOOH exposure increased 4% to nearly 59 minutes per week through July 31.
Growth in DOOH operator revenues and consumer exposure time is being powered mainly by high-voltage markets in Asia-Pacific and surging vertical channels like healthcare and transit, which offset weak cinema markets in the first half of 2017, particularly in the US.
PQ Media defines DOOH media by two broad platform categories – place-based video networks & interactive kiosks; and digital billboards & signage – and further segments DOOH into key venue and location channels, such as roadside, cinema, retail, healthcare, transit and entertainment, among others. PQ Media’s data covers DOOH operator revenues and consumer exposure time worldwide, with deep-dive analysis into the dominant Top 20 Global Media Markets.
The US remains the world’s largest individual market, accounting for almost 25% of all DOOH ad revenues, followed by China, Japan and the UK. Blazing into the fifth-largest spot is red-hot Australia, which is also the fastest-growing market so far in 2017, trailed by India, South Korea, Taiwan and Argentina, according to PQ Media estimates. In addition, Brazil’s DOOH segment boasts the highest share of total OOH ad revenues among the Top 20 Global Markets, followed by the UK, Germany, China and Australia.
“DOOH media is the second-fastest growing ad medium because the industry continues to add value to the entire OOH advertising equation, utilizing the latest digital media hardware and software, and various smart technologies to develop cutting-edge digital screens equipped with cameras, location-based networking and audience measurement capabilities,” said PQ Media CEO Patrick Quinn. “Our research shows that media operators and brands are realizing higher user engagement with their advertising due to these advancements. As consumers continue to access more media outside the home and use ad-skipping technology, brands will increasingly turn to DOOH to engage target consumers near the point of decision.”
The hottest indoor and outdoor location channels thus far in 2017 are transit and healthcare, fueled by sub-channels therein, such as point-of-care venues, airports, train stations and urban roadside locations. This trend is evident in several major deals that went down, including:
- In May, Outcome Health, which operates waiting-room screens and tablets for patient education and pharmaceutical marketing, garnered a $500 million funding round to continue its triple-digit growth and expansion momentum;
- Point-of-care network operator PatientPoint in June raised $140 million from private equity firms Searchlight and Silver Point to expand its digital footprint, followed just one month later by PatientPoint’s acquisition of digital oncology waiting-room media provider Patient Education Network;
- In July, JCDecaux’s subsidiary in Belgium renewed an exclusive, seven-year concession for Brussels Airport after a competitive bidding process;
- WPP’s tenthavenue unit that focuses on OOH media and experimental markets, invested in startup company LOOM Media, which specializes in creating opportunities for brands to sponsor urban innovation.
Among the other key trends impacting the DOOH ad sector in 2017 are the range of opportunities that mobile media presents going forward. With research indicating that brand exposure through OOH media can significantly increase consumer smartphone action, both digital and traditional OOH operators are pitching brands to invest in cross-channel campaigns through both media.
While programmatic buying has met with some resistance, a gradual shift from to programmatic from negotiated buying is occurring. Programmatic enables brands to directly purchase ad spots in real-time, simplifying the process and providing brands with data to allow for ad buys based on audience, demographics, views and even weather patterns.
*SPECIAL LIMITED TIME OFFER: PQ Media is offering Digital Signage Connection readers a 25% savings (or $500 off) the standard rate listed on the Global OOH Media Forecast page that appears after you click the following link, where you can also download a FREE executive summary and sample datasets: http://www.pqmedia.com/gooh2017.html. Please contact Patrick Quinn at firstname.lastname@example.org or call him at 203-569-9449 to take advantage of this special offer, which ends September 29*
About the Forecast:
PQ Media’s Global Out-of-Home Media Forecast 2017 is the 10th edition in this groundbreaking series, which covers the 2010-20 period through 311 datagraphs in a 411-page report. The core report is supplemented with a deep-dive Excel databook that delivers 46 dataset tabs, 13,000 datapoints, market-specific insights and five-year projections. The latest edition includes expanded data on all forms of digital, traditional and ambient OOH media, five new leading countries, and exclusive datasets covering all 20 leading countries; and over 10 key indoor and outdoor location channels.
About PQ Media:
PQ Media delivers intelligent data & analytics to high-level executives at the world’s leading media, entertainment & technology organizations through a wide range of syndicated market research, custom research services & strategic consulting. PQ Media uses a proprietary econometric methodology to define, segment, size and project outcomes across over 100 digital, alternative & traditional media, spanning every global region, leading country, media sector, platform, channel and generation.