DOOH Ad Spend Up in Q3 ’11

January 23, 2012

pri-dooh-ad-spend.jpgThe amount of ad spending on digital-out-of-home (DOOH) networks reported in Q3 2011 was 10.6% higher than in Q2, while the estimate of ad spending on DOOH networks over the next 3-6 months is projected to be 9.89% above Q3 levels, according to a January 2012 report from the Platt Retail Institute (PRI) in partnership with the Digital Signage Federation (DSF). The DOOH ad spend index, a composite measure of changes in the reported level of business activity, was 130 in Q3 2011, its highest level since Q4 2010 (137.5).

An index score of over 100 indicates an improving or positive industry outlook.

In March 2011, global DOOH advertising revenue, which climbed 16.3% from $5.56 billion in 2009 to $6.47 billion in 2010, was forecast by PQ Media to rise another 16.9% to $7.56 billion for the year.

Advertiser Adoption Biggest DOOH Challenge

pri-dooh-challenges.jpgAccording to the PRI-DSF report the lack of support from ad agencies continues to be the largest challenge for DOOH, ad-supported networks, cited by 36% of respondents in Q3 2011, down slightly from 38% in Q2, but representing a 20% rise from 30% in Q1.

Other current and future DOOH challenges cited included the need for quality metrics (30%) and competition (12%).

Overall Digital Signage Industry Outlook Remains Positive

Meanwhile, the PRI-DSF North American Digital Signage Index covering Q3 2011 decreased by 1.05% quarter-over-quarter following a strong 5.08% increase in Q2, although survey participants continue to be optimistic about industry growth in the next 3-6 months. The Near-Term DS Index, an indicator of future business/industry activity reached a score of 134.3, representing an 11.32% increase in sentiment from Q2, after rising 11.48% that quarter.

Industry Wants Better Metrics, Though

Although lack of available funding and competition within the market had been the leading digital signage industry challenges cited by respondents in Q2 and Q1, respectively, in Q3 metrics rose to the top of the list, with 29% of respondents focused on the industry’s need for proven measurement techniques. The second-most cited challenge was advertiser adoption, with 19% feeling that advertisers continue to focus on other elements of a media budget, rather than out-of-home.

About the Data: The PRI-DSF Index survey participants represent a select cross section of 58 industry leaders, comprising 7 industry sub-segments including: software, hardware, DOOH networks, professional services, captive networks, content providers, and agency/brand.

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