Place-based Digital Out-of-Home Advertising Exposure Surges As Consumers Spend More Time Outdoors
STAMFORD, CT — Exposure to place-based digital out-of-home advertising has increased sharply as consumers spend more of their time outdoors and away from home, according to PQ Media. PQ Media’s latest research, Consumer Exposure to Digital Out-of-Home Media Worldwide 2014, suggests that place-based digital out-of-home advertising may be on the verge of a long-awaited industry breakout. Digital out-of-home advertising has been building momentum in recent years through increased consumer exposure and operator revenues, resulting in digital signage media ascending to the world’s second fastest-growing ad medium as it quickly becomes a vital component of the transitioning media ecosystem.
According to PQ Media, the average global consumer was exposed to various digital out-of-home (DOOH) media for 14 minutes per week in 2013, a 75% increase from only eight minutes in 2007. Key growth drivers included consumers spending a record amount of time with media outside their homes; increased engagement during the day with corresponding content on DOOH screens that are linked to wireless devices; longer work commutes; and consistent growth in leisure travel and shopping hours.
In addition, PQ Media’s data indicates that improved designs, content, interactivity and mobile couponing are extending dwell time with screens. Collectively, these trends factored into the deployment of thousands of new digital signage networks in the 2007-13 period in the Top 15 Global digital out-of-home markets, concentrated in high-traffic, captive and measurable locations, such as roadside, healthcare and transit.
PQ Media’s latest report delivers the first in-depth, cross-channel datasets, time series and analytics developed with a proven media consumption methodology applied consistently to each country for the 2007-17 period. Adding value to its methodology, PQ Media created the Consumer DOOH Exposure Index™ to compare exposure growth with that of operator revenues and other ad-based media.
The exposure index showed that global consumers are spending more time outdoors, dedicating substantial amounts of time to activities placing them near digital billboards and digital place-based video networks. Accordingly, DOOH media is the second fastest-growing ad medium worldwide based on average weekly consumer exposure projected through 2017. Digital out-of-home media trailed only mobile media in 12 of the 15 largest markets where exposure results were also compared with seven other ad media, including traditional out-of-home, television, radio, newspapers, magazines, internet and mobile. Comparison ad media data were gleaned from PQ Media’s Global Consumer Usage of Digital Media Forecast 2013-17.
In a prescient sign for digital out-of-home, PQ Media’s approach yielded outcomes similar to those published in the aforementioned consumer media usage report, which hypothesized that end-user spending on digital media drives growth in consumer media usage, which leads to increased ad spending on digital media. Specifically, the exposure index revealed that the strongest digital out-of-home markets produced rapid exposure growth in the historical period (2007-12), as more digital signage was deployed. With DOOH market leaders emerging in major metros worldwide, however, the index shows that operator revenues in these markets have begun to grow faster than consumer exposure, as advertisers up their DOOH budgets to engage more elusive consumers by purchasing avails in captive venues offering longer dwell times.
“Digital out-of-home exposure and revenues continue to grow at a time when ad media are increasingly challenged by cross-currents taxing their ability to engage target consumers,” said Patrick Quinn, CEO, PQ Media. “Projected higher gains in digital out-of-home revenue compared with lower growth of consumer exposure in the 2013-17 period, a trend that often indicates longer-term success for emerging media.”
Consumer digital out-of-home exposure is forecast to increase at a compound annual growth rate (CAGR) of 8.6% to 20 minutes on average per week in 2017, fueling higher spending on DOOH inventory and a 14.2% CAGR in operator revenues in the forecast period. Traditional OOH revenues, meanwhile, will rise at a 4.1% CAGR over the next five years, as static billboards decline at a 1.6% CAGR to 44 minutes weekly in 2017. Key growth drivers will include steady rollouts of dynamic signage to replace lower-margin traditional displays in choice metros, improved content, stronger measurement and tactics geared to boost engagement via links between digital out-of-home messages and mobile and social media.
Key Takeaways: Top 15 Global Markets
While the US remains the world’s largest DOOH market by revenues, it ranks fourth in consumer digital out-of-home exposure behind Australia, the UK and Canada, all of which have high concentrations of people near a few major cities where most DOOH engagement occurs. US exposure still increased nearly 20 minutes on average weekly to 47 minutes in 2013. Traditional OOH exposure averaged one hour more than DOOH, but declined 24 minutes since 2007. Digital out-of-home advertising exposure will average 56 minutes per week in 2017.
Bolstered by the successful results during the UK-hosted Summer Olympics in 2012 and high expectations for the 2016 summer games in Brazil, DOOH exposure is projected to exceed that of traditional OOH in both countries in 2017. Key drivers will include innovative uses of new technologies, more interactive content and DOOH placement in the highest-traffic locations. Nearly 50% of the UK’s digital signage is positioned at the busiest sites in London, offsetting exposure time from infinitely more static billboards nationwide.
While China is the second-largest digital out-of-home market by revenues, it features wide swaths of land where digital and wireless technology can’t be deployed yet, either due to regional topography or areas where inhabitants are too far from major cities or not trained to use new technologies. Consequently, Asia’s emerging economic giant has a huge population off the radar, which places China near the bottom of the world’s leading markets.
In 2013, Australia became the first global market in which consumers were exposed to digital out-of-home for more than one hour per week, fueled by a surging digital signage industry in a country where 90% of the population lives near the largest cities and most of the DOOH media. Total OOH revenues here grew 15 of 16 quarters through the end of 2013 and the key driver was DOOH expansion.
Free Trend Report: Why Location Is the New Currency of Marketing
Finding effective ways to deliver branded messages in today’s complex media environment is one of the biggest challenges facing advertisers. Traditional methods of advertising have become less effective as consumers spend less time in places where marketers have traditionally had an advantage in reaching them. In addition, consumer attention has fragmented across multiple channels as media options and device platforms increasingly diversify.
Active consumers spend money, and while they are going about their daily routine, they are also actively looking for information. According to Google, more than 50% of all mobile searches have local intent, and 17% of search happens while consumers are on the go.
Digital Out-of-Home (DOOH) advertising, also known as Digital Place-based (DPb) media, utilizes strategically placed, networked digital signage displays to reach on-the-go consumers while they are outside of their home with highly targeted messages. Location-based mobile and digital out-of-home media are part of a larger multiscreen ecosystem that effectively amplifies brand messages to create a deeper level of engagement with active consumers.
Why Location Is the New Currency of Marketing is aimed at CMOs, media buyers and strategists and provides insight into why marketers are increasingly shifting their advertising dollars to these rapidly emerging media platforms.
Highlights from Why Location Is the New Currency of Marketing include:
- The Connected Consumer
- Leveraging the Moment
- Multiscreen Campaign Planning
- Amplifying Reach With DOOH Media