MediaBuyerPlanner: Alternative out-of-home media spending surged 27.0 percent to $1.69 billion in 2006 and is projected to grow at an accelerated 27.7 percent rate in 2007, according to a study from PQ Media.
The study, the company’s first in-depth analysis of the media segment, found that of the three sub-segments of alternative out-of-home media, digital billboards and displays is the fastest-growing, with spending soaring 55.4 percent in 2006 to $233.2 million.
Video advertising networks is the largest sub-segment, accounting for 60 percent of total spending. Spending on video advertising networks and screens grew 28 percent in 2006 to $1.01 billion, with high double-digit growth in all four markets – in-theater, in-office, in-store and in-transit.
Ambient advertising, also called place-based media, increased 14.1 percent in 2006 to $446.4 million.
Advertisers believe these sub-segments provide high engagement, targeting options, proximity to point-of-sale, measurable impact and cost effectiveness, according to PQ Media. Other factors driving the growth of alternative out-of-home is data which indicates that exposure to – and recall of – these forms of media is growing as Americans spend more time commuting to work, walking in urban areas, waiting in transit hubs, and shopping at retail outlets.
“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,” Patrick Quinn, president and CEO of PQ Media, is quoted as saying in MarketingCharts, which includes additional details on the study.
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