BIA/Kelsey: DOOH revenues to reach $3.7 billion by 2013

Look for more and more advertising capital to be pushed toward Digital Out Of Home (DOOH) networks over the next three years. According to the latest forecast from BIA/Kelsey Group the DOOH spend will reach up to $3.7 billion in 2014. That is up from the expected $2.2 billion in ad revenue for 2009.

by Kristina Knight

What will drive the increase? According to the forecast partnerships and upgraded platforms will push the rapid growth; a lessening in the Traditional Out Of Home (TOOH) ad realm will also help. The TOOH spend is expected to grow by only about 1%, from $4.4 billion in 2009 to about $4.6 billion in 2013.

Digital Out Of Home includes digital billboards, the type which rotate ads every 10 seconds as well as place-based digital networks, the kind seen in mall food courts or kiosk areas. The place-based networks can hold both video and display ads.

Billboards, one of the biggest TOOH properties, continue to account for more than 60% of the overall Out Of Home spend.

The digital billboards have become a hot property in advertising over the past few years as newer technologies have evolved that can target ads to consumers still in their vehicles based on radio station air-play and other factors. This type of targeted advertising has been shown to have a good impact on campaign ROI. Marketers using these digital billboards are able to offer coupons and special offers to drivers; the ads can even be enabled to use online content and mobile messaging activities.

The full forecast will be discussed at the Interactive Local Media 2009 conference in Los Angeles, December 9 - 11.