May 15, 2007
Alternative-Media Spending Rapidly
Expanding
New trends that are stifling the growth of
traditional media are opening the door to out-of-home (OOH) media, which
includes video advertising, digital billboard, and place-based advertising such
as floor pads. It seeks to connect with elusive consumers in captive
environments such as retail, transit, cinema and offices.
PQ Media, a provider of alternative media
economics, said spending on OOH media grew 27% to $1.69 billion in 2006, and is
projected to grow by 27.7% this year. Comparatively, the ad industry as a whole
grew by 6.4% in 2006.Key trends driving the expansion of OOH media
are:
- It provides high engagement, targeting options,
proximity to point-of-sale, measurable impact and cost effectiveness.
- Americans are spending more and more time
commuting to work, walking in urban areas, waiting in transit hubs, and shopping
at retail outlets.
- Many consumers are believed to view alternative
OOH media as favorable and educational.
- Companies are able to launch digital ad
platforms that generate higher revenues than conventional formats.
Last year, spending on video ad networks grew
28% to $1.1 billion. Digital billboards-and-displays was the fastest-growing
segment with spending increasing 55.4% to $233.2 million. Place-based media
increased 14.1% to $446.4 million. |
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