2012 is nearly over. Time to look at the outdoor advertising market and realize where it is taking us in terms of advertising budgets and technological advances. The economic crisis that started modestly in 2009 refuses to end. The good news is that negative trends in economic indices of the developed countries did not affect the advertising market significantly. Practically all countries report moderate growth in advertising budgets (approximately by 3-4% a year, starting with 2009). The forecast of advertising budgets for the period of 2013-2016 speaks about relatively low but stable increase – about 6.4% a year.
LCD columns Digital 360 at Changi Airport’s Largest European LCD video wall in Westfield Stratford City shopping center
The segment of digital advertising grows much faster up to 9% a year. In 2012 digital advertising averaged 27% of the total revenues for the OOH market. And in the next five years the digital advertising will account for 67% of growth for the whole outdoor industry. Naturally, this large number is dominated by the Internet digital component. But since the Internet is confidently moving into the out-of-home space, this trend may be considered to be indicative. The printed editions are quietly surviving or closing down and move into the digital Internet format (as it has happened with the Newsweek and The Independent).
Large digital billboard in Rembrandtplein Square Largest in the world LED screen 23.42x41.86 m
(980 sq. m / 3904x6976 pixels) in China
the advertisers have got used to digital format and no longer resist signing checks for digital outdoor advertising;
the dynamic video advertising has fully proved its advantages over the “dead” billboard images or slide show formats, especially when it concerns popular digital branding;
constantly improving quality of LED screens, higher energy efficiency and falling production prices opened the way to massive installation of LED screen applications and their fast return-on-investment;
advances in IT technology and improvements in control systems allow digital media to distantly and confidently control screens and update the content practically instantaneously;
a possibility to advertise several clients on one advertising surface (one screen) significantly increases financial efficiency of digital media etc.
Digital billboards by Titan Canada at Dundas LCD video wall at Hounds Hill Shopping
Square in Toronto (Canada) Centre, Blackpool, UK
wider range of advertising media and OOH advertising carriers;
higher concentration of advertising per square unit (something that city authorities everywhere are ineffectively fighting against);
improved creativity of outdoor advertising (mainly due to colorful video clips).