Even digital out-of-home, one of the fastest-growing media, was not immune to the effects of the economy in 2009. Digital OOH will inch up 2 percent to $2.5 billion, according to an updated forecast from PQ Media, which chopped more than 4 percentage points off its August forecast.
The research firm also adjusted down its 2010 forecast, calling for digital out-of-home to grow 6.2 percent to $2.62 billion. PQ Media had originally forecast DOOH to increase 10 percent to $2.8 billion.
From 2002 to 2007, digital out-of-home, video ad networks and digital billboards, grew by double digits, a phase Patrick Quinn, CEO and president of PQ Media called the “gold rush.” Today the medium, growing at a single-digit pace, is in its shakeout and consolidation phase.
Of the more than 660 companies tracked by PQ Media, only four generated more than $100 million in ad spending in 2009. Only 2 percent of the companies had revenue between $25 and $100 million. Most of the DOOH companies had less than $1 million revenue.
“Next year will be another difficult year. Digital out-of-home is fairing well in its first recession, but a number of things have to happen before it becomes the real deal,” Quinn said. “This is a critical phase in the evolution of the business. We’ll see acceleration, but there are still issues out there including fragmentation, scalability and measurement.”
Continue to next page →