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Digital Out-of-Home: The Next “Big” Thing

Digital out-of-home (DOOH) ad revenues are forecast to grow significantly, from $2.2 billion in 2009 to $3.7 billion by 2013! According to a recent release from BIA/Kelsey, which advises companies in local media space through consulting, valuation and advisory services, positioning it to be the next big thing – literally and figuratively! – in media.

What is DOOH?

The Outdoor Advertising Association of America (OAAA) breaks DOOH into two categories: billboards, and place-based digital networks. “Digital billboards are static roadside displays that rotate advertising messages every 8 to 10 seconds,” the association explains. “Place-based digital networks are often indoors and positioned in commercial areas where groups of people congregate. Place-based digital networks carry both video content and static advertisements.”

Both DOOH formats are already in wide use in the New York/Long Island metro area. From digital billboards as you approach the Queens Midtown Tunnel to flat-screen monitors rotating ads in the local diners, this medium is definitely on the rise.

According to BIA/Kelsey, DOOH is poised to be “the next major growth area” when it comes to local advertising, with an estimated compound annual growth rate (CAGR) of 13.5 percent. “During the same period, traditional out-of-home (OOH) advertising revenues will only grow at a CAGR of 1.4 percent, from $4.4 billion in 2009 to $4.6 billion in 2013,” the group projects.

“OOH is relatively easy to plan and buy since it is so concentrated,” said Rick Ducey, Chief Strategy Officer, BIA/Kelsey. “DOOH must get easier to plan, buy and measure in order to reach scale. With consolidation, partnerships and interoperable platforms, we see the buying process becoming more integrated, which will spur growth.”

At Austin & Williams, we work closely with our clients and partners to develop an integrated media strategy, and in recent years have been adding DOOH to the mix. It’s an exciting alternative to the more traditional OOH elements, such as billboards on roadways and wild postings in local businesses. We also project an increase in DOOH in the years to come, particularly among our higher education clients who are already dabbling in this format with impressive results.



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