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ADCENTRICITY report sheds light on who's buying DOOH
Last week brought the release of the latest quarterly DOOH Market Review from ADCENTRICITY, and today we take a closer look at what the numbers mean.
August 15, 2010
Last week marked the release of the second quarterly DOOH Market Review from ADCENTRICITY.And although findings were largely based on digital signage advertising bookings through the company and research from Nielsen, it provides a good window into the state of the industry.
(Note: these findings reflect the industry of digital signage advertising, commonly known as DOOH, not the digital signage industry as a whole.)
The report is 14 pages and is downloadable from the ADCENTRCITY website, but in case you don't have time to make it through the entire report, here are several highlights:
Q2 didn't live up to Q1 expectations:
ADCENTRICITY's Q1 reportpredicted a boost in spending for Q2 that isn't being realized. It seems campaigns are being pushed back, meaning one of two things (or both): Brand ad spend isn't recovering as quickly as predicted, or brands are waiting on each other to make the moves into this space so they can evaluate each other.
Q2 sales mean Q3, Q4 dollars:
ADCENTRICITY had its largest booking quarter to date, but that doesn't mean that Q2 sales were realized. According to the report, "this surge in activity was advance bookings for a larger, more focused Q3 and Q4 advertising spend. While frustrating to the industry as a whole to not see more direct economic activity in the quarter, this activity bodes well for a longer, more sustained growth pattern into Q3 & Q4 and into 2011."
2011 will shape up to be a better year than 2010 for advertising in general:
Nielsen says that "fast moving consumer goods (FMCG) companies — the top ad spenders in 2009 — continued to be the largest spenders in Q1 2010 (+23 percent)." They also report that automotive (+19 percent), financial services (17 percent) and durables (16 percent) rebounded in every region. Within the FMCG sector, "all categories posted growth of more than 20 percent increases with Housekeeping Products and Cosmetics & Toiletries leading the growth (+27.4 and +25.6 percent respectively), and Food and Drink following closely behind."
DOOH not getting rebounding dollars:
DOOH, however, has struggled to grab larger shares of the money from the small rebound in the larger media market. ADCENTRICITY thinks maybe this is because as far as media goes, DOOH is a "new kid on the block."
Top DOOH spending categories identified:
Financial, telecommunications and automotive top the list of categories booked through ADCENTRICITY. Although not a 100 percent-reliable indicator of the industry at large, it gives a general idea of which groups are most likely willing to spend money in this space. It is interesting to note that financial services and automotive top the list – two of the hardest hit industries by the recession. For 2011, healthcare, pump-top and hospitality "have begun to make inroads in proposal evaluations," making them good candidates for spenders in 2011.
Top DOOH venues for campaign inclusion remained the same:
Retail, grocery, pharmacy and c-store environments were once again the quarter's winners. ADECENTRICITY predicts that office buildings and doctor's offices will be added to the top of this list in Q3.
ADCENTRICITY remains optimistic about Q3 in this report and touches on some drivers for the medium, including interest in DOOH from the food and beverage, confection and pharmaceutical categories, more rural DOOH ad campaigns and better targeting strategies – all of which I think will happen eventually, just not in time for their next report to come out.
The fact is, the recession hurt this medium in a nascent state, and it's taking longer to grow to where it was expected it to be pre-2008. But the good news is that even on a smaller scale, the tactics, technology and ideas behind some of the best DOOH campaigns are ingenious. We just need more brands to buy into them.
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