Alternative Out-of-Home Media Spending Soars 27%

April 30, 2007

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Alternative out-of-home media spending surged 27.0% to $1.69 billion in 2006 and is projected to grow 27.7% in 2007 as brand marketers seek more effective ways to engage mobile consumers during their daily routines, according to the PQ Media “Alternative Out-of-Home Media Forecast 2007-2011” report.

Alternative out-of-home advertising is one of the fastest-growing media segments, expanding at double-digit rates every year from 2001 to 2006, with a compound annual growth rate of 22.6% for the period, according to PQ Media.

Alternative out-of-home media refers to the use of innovative technology and concepts, such as video advertising networks and digital billboards, to connect with more elusive consumers in captive environments, including retail, transit, cinema and office locations.


The overall advertising industry expanded 6.4% in 2006, whereas total out-of-home advertising increased 10.6%, assisted by the 27.0% growth in alternative out-of-home media, according to the report.

Spending growth in each of the three segments of alternative out-of-home media – video advertising networks & screens, digital billboards & displays, and ambient advertising – accelerated in 2006, PQ Media found.


Video advertising networks is the largest segment, accounting for some 60% of total spending. Spending on video advertising networks & screens grew 28.0% in 2006 to $1.01 billion, with high double-digit growth in all four markets: in-theater, in-office, in-store and in-transit, according to the PQ Media report.

Digital billboards & displays is the fastest-growing segment; spending soared 55.4% in 2006 to $233.2 million. Each of the four markets – at-road, at-retail, at-transit and at-events – expanded at accelerated rates.

The alternative ambient advertising segment, also called place-based media, increased 14.1% in 2006 to $446.4 million.


“Ironically, the trends impeding traditional media – consumer fragmentation and control, advertising accountability and the emergence of digital technology – are the very catalysts stimulating the tremendous growth in alternative out-of-home advertising,” said Patrick Quinn, President and CEO of PQ Media. “Unlike its mass media peers, alternative out-of-home advertising is impervious to channel or web surfing and is immune to audience fragmentation.”

“Americans spend twice as much time outside their homes and workplaces today than they did just a few decades ago. As a result, the ability to reach target audiences in attentive venues through non-intrusive media has become very important,” Quinn said.

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