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Digital Fuels Growth for Out-of-Home Advertising |
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Digital Fuels Growth for Out-of-Home Advertising.
In these trying economic times, when an industry is predicted to grow 9% that should stand as a powerful symbol of the sector's long-term growth prospects. Could 2009 mark digital out-of-home media's coming out party? As traditional media titans like the New York Times crumble under the weight of their high operating costs and debt, digital out-of-home media stands to reap significant revenues.
Wouldn't it be ironic if the digital signage industry finally reached its long predicted tipping point while the country is in a recession? But, it should not be forgotten, that a recession breeds innovation. New ideas and business models emerge to drive economic revitilization. Digital out-of-home media stands to be a steward of such growth.
The current economic times are forcing media companies to reexamine their spending practices. Ultimately, as media buyers and planners delve deeper into what’s working and that which is not, they can no longer ignore the true benefits and measurability of digital out-of-home media.
"The secular trends driving growth in the out-of-home space aren't going away. People are spending more time outside the home and commuting more, the youth market continuing to multi-task and spending more time outside the home," Patrick Quinn, CEO of media forecasting firm PQ Media, said. "The networks really targeting these people and the technology being used to reach them is seen by both agencies and brands as more engaging and reaching them in captive locations at periods of time."
Suzanne Alecia, president of the Out-of-Home Advertising Bureau, said the last six months have been particularly game-changing for the industry as agencies such as WPP Group's Group M and Publicis' Mediavest start to equip their outdoor and even TV buying groups to plan and buy digital out-of-home as part of a larger integrated strategy. "The agencies are no longer talking about it. They're actually moving people around and creating divisions, investing man hours and time into this industry."
Although digital out-of-home offers advertisers an opportunity to tweak their TV ads, an increased amount of brands are creating dedicated spots for outdoor media networks.
Venture capitalists are also seizing the growing opportunity in digital out-of-home, particularly with companies who can help advertisers bridge the gap between social media and compelling content that complements the venue. Retail-based media networks such as Danoo, Channel M and Access 360 have all recently secured rounds of multimillion dollar funding, on par with what online ad networks were seeing as recently as a year ago.
Jon Chait, a partner at digital-media investment firm Dace Ventures, said digital out-of-home is becoming more attractive to investors as operational costs drop and the ad market matures. "These companies have dynamic targetability, whether it's digital or video-delivered, and they have ownership of the space they're in," he said.
Technology connects out-of-home networks with the community-driven relevancy of online destinations such as Facebook and Twitter. Bridging social networks and digital signage will foster conversations that effortlessly flow across a person’s connected life.
It is an exciting time to be in the digital signage industry.
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MARSYS 1670 South Amphlett blvd., suite 300, San Mateo, CA 94402
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Main: 650.655.4000 fax: 650.655.2660 toll free: 800.796.6581
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