Ad spending in digital out of home is still a bumpy road. Though second quarter was the best booking quarter ever, campaigns were often pushed off to third quarter.
As a result, third quarter is shaping up to bring in more revenue than second quarter, according to a report released Wednesday (Aug. 11) from Adcentricity, an aggregator of digital out-of-home inventory across more than 200,000 screens operated by 90 networks.
A new medium, digital out of home is still subject to volatility and advertisers' whims. "We can only see out about 60 days. Advertisers are placing close to air date," said Rob Gorrie, president and CEO and founder of Adcentricity. Still, a handful of the best-known networks are sold out through September, Gorrie noted.
The same categories that drove the business early in the year continue to be the top spenders in the second half. Financial services advertisers are leading spending in third quarter, followed by auto, telecom, electronics/appliances/furnishings, and healthcare. So far, auto represents 30 percent of third-quarter order activity.
Surprisingly, networks are turning away political if the owners don't like the political party looking to place advertising. "It's a frustration," said Gorrie. "You could see a lot of spending come into the space."
Some ad categories are still hesitant to try out the new medium. "Food, beverage and candy categories are still kicking the tires," Gorrie said. "I don't expect big spenders like Coca Cola and Procter & Gamble to come in until 2011."
Advertisers are gravitating towards networks in office buildings and public areas, the top venues in the space. Groceries and checkout counters are the second-most demanded networks, followed by healthcare pharmacies, retail, convenience stores and doctor's offices.
Networks in C-Stores are growing. In first quarter, those networks made up nearly 14 percent of all requests. "They are seeing a lift for retail merchandising, also some telecom, auto and financial services advertising. The venues push revenue quickly," Gorrie said.
Also on the upswing, shopping centers. "Interest has doubled," said Gorrie.
PQ Media's forecast calls for digital out of home to grow 6.2 percent this year to $2.62 billion.