by Lyle Bunn
Advertising spending on digital place-based, out-of-home networks in North America is rounding the level of $1 billion annually, with a compound annual growth rate of about 15 percent that is 16 times that of the North American economy.
Digital Place-based media offer well-measured, high audience reach and demographic targeting with a powerful engagement proposition in places where people shop, gather, transit, work and study. According to the 2010 Arbitron Digital Video Display Study, 70 percent of teen and adult U.S. residents view digital video displays monthly, an estimated 181 million people.
The future appears bright for digital place-based and location-based dynamic media, as its use is visibly maturing. Value is being regularly proven in a range of applications. Standards are emerging. Perplexing elements are becoming clearer. Supply is stable, and consolidation, aggregation and merger are occurring to enable economies of scale and operational efficiencies.
All of the industry numbers, including the shift of ad spending and the corporate use of place-based dynamic signage point toward increase.
The Digital Place-based Advertising Association has reported that 94.2 percent of agency survey respondents say that they would include digital place-based media in their plans. Just over 40 percent of planners said that they will fund their digital place-based media plans through digital and online budgets, an increase of 75 percent over the 22.9 percent in a previous similar survey.
The $1 billion figure is forecasted to be "on the books" in fall 2012 as the network operators, agencies and advertisers, associations, event producers, publishers, suppliers and industry analysts and educators to which this achievement is collectively credited, take industry-building to new plateaus.
In celebration and to accelerate this achievement, the first-ever directory of the 300-plus North American digital place-based networks will be published by NewBay Media, in which networks can list themselves online via both free and enhanced listings.
The printed directory will be distributed at several events that have been annual contributors to achieving this milestone, and which should be on the calendars of those looking to find out more about the industry:
- The Digital Place-based Advertising Association Summit in New York City on Oct. 16 will gather 300-plus agency and brand executives and network operators.
- The seventh annual Strategy Institute Digital Signage Investors Conference in New York on Oct. 17-18 will include presentation by industry veterans addressing subjects such as advertising outlook, effectiveness of the medium, large network outlooks, as well as merger, acquisition, consolidation and recapitalization activities and structures.
- Customer Engagement Technology World in New York Nov. 7-8 focuses on "owned" media in the "paid-owned-earned" media model.
- Digital Signage Expo in Las Vegas, Feb. 26-28, 2013, will include the Advertising Summit and an out-of-home education track that will include lessons learned and best practices from presenters such as Mike DeFranza (chair of the DPAA and CEO of Captivate) and Phil Cohen (incoming chair of the Digital Signage Federation and CEO of Care Media) among others.
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Lyle Bunn is an analyst, advisor and educator in North America's dynamic media industry. He can be reached through www.LyleBunn.com.