Boardroom View

Digital…taking it to the streets
Digital…taking it to the streets.

Jean-Luc Decaux, Co-Chief Executive Officer, JCDecaux NA
May 13 2008

Long associated with the iconic Times Square in New York City, Piccadilly Circus in London and the streets of Shanghai, digital signage is now making its way to your local grocery store.

Total Out-Of-Home Media (OOH) revenue figures in the U.S has surged 12% in 2006 to $7.06 billion.   This striking growth includes a 27% increase in the Alternative Media segment encompassing Digital Billboards and displays, Video Ad networks and Ambient Media.

Many new and established media companies are investing in new digital technology capitalizing on a trend representing $1.69 billion in 2006 and growing quickly.  In 2007, Out-of-Home media grew 7% in the U.S., second only to the internet.  In 2009, OOH is forecasted to grow faster than the advertising market overall.

The dawning of this new age of digital technology is fostered by the elusive consumer shying away from traditional media and the flexibility offered by the new digital technology.  This includes copy rotations, multiple messaging, day part selling, demographic targeting and the ability to respond to an advertiser’s daily tactical marketing needs.

By the year 2030, 60% of the world population will live in cities. The average time spent by consumers outside of their home commuting to and from work for business or leisure will continue to increase making OOH immune to audience fragmentation and online competition. 

Often considered the last the broadcast media, the Out of Home industry is redefining its offering to both advertisers and Wall Street.

In recent digital development news, Heathrow Airport’s new Terminal 5 will open its doors with a digital offering of some 200 high definition panels reaching 27 million annual passengers, a first in the world of airport transportation.

If digital technology is contributing to some new revenue growth in out of home media, it must not overshadow the tremendous investment the major out of home media owners have committed to products developments, opening of new venues and new research in audience measurement system.

The day every billboard, bus shelter and bus side displays a digital sign has not arrived as of yet.