News

Is digital place-based slowing down DOOH?

April 23, 2012

According to MediaDailyNews, as we approach the opening of the 2012-13 upfront advertising marketplace, a new study from PQ Media suggests that digital blased-based networks have seen a slowing of their demand, relative to the rest of the digital out-of-home advertising sector.

The estimated numbers were released today in PQ Media's annual global DOOH advertising forecast and seem to show that ad growth in U.S. digital place-based networks slowed to 7.5 percent lastyear, a mark that is slightly less than half its growth rate the previous year, 2010:

While digital place-based networks nonetheless remained one of the fastest-growing segments of ad-supported media during 2011, the slowdown indicates that some steam has gone out of the digital out-of-home media marketplace.

PQ, which attributed the 2011 slowdown to "cyclical events" including the economy, said the impact was more negative during the second half of 2011, and singled out a "substantial slowdown" in cinema ad spending, the largest sector within the place-based digital ad network marketplace in the U.S.

On the plus side, PQ cited "double-digit demand" from corporate, health care, entertainment, education and transit advertisers.

The other major digital out-of-home ad categories, however, grew 20.3 percent $638 million last year.

Read more about the study, including projections for this year, at MediaPost.com.

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