At a time when newspaper and magazine advertising is struggling amid increasing competition from the Web, there has been little attention paid to another ad market that continues to see solid growth: outdoor advertising – you know, those ubiquitous billboards that catch your attention when you’re driving and talking on your wireless device.
According to eMarketer, the outdoor ad market will rank second beyond online in terms of spending growth. Over the next four years, eMarketer believes the size of the U.S. outdoor ad market will climb to $10.2-billion from $7.4-billion, while the online market will double to $42-billion from $21.4-billion.
So why is the outdoor market thriving while newspapers and magazines are struggling, and being forced to reduce costs and change their business models? The answer seems to be that the outdoor market, which has traditionally involved slapping up large pieces of paper on a billboard, is capitalizing on the growing adoption of technology: video. This, in turn, is attracting advertisers who now have a new tool to reach consumers.
Now, it’s important to remember that outdoor advertising really means out-of-house. So, you’ll start to see video billboards in a growing number of places such as stores, office buildings, malls, gas stations, bars and restaurants. The outdoor video market is expected to hit $2.25-billion in 2011 from $1.26-billion in 2007.
It should also be noted that even though a lot of people (especially those running Web sites) are enthralled with the growth of the online ad market, the overall market continues to grow with the exception of newspapers and magazines. It’s not all online, all the time – at least, not yet. TV is still a powerful advertising medium while radio is still holding its own.
Outdoor, meanwhile, is rocking along, which is good news for players such as Clear Channel Outdoor, CBS Outdoor, Lamar Advertising and, in Canada, Pattison.
Technorati Tags: Advertising, eMarketer
