MyersBizNet forecasts for Out-of-Home media ad growth are admittedly conservative, and while growth of digital spending on OOH media is robust, it can and should be significantly greater based on increasing digital opportunities, industry innovation, and inventory availability. However, unless and until media agencies and advertisers organize to fully capitalize on the potential of digital OOH, growth will be slower than it should be. With mobile advertising growing 55% annually in 2014 and 2015 and digital video budgets growing at a similar rate, it's logical for Out-of-Home media to target these budgets, but it further complicates the challenges for agency planners and buyers as they redefine planner and buyer responsibilities.

Several media agencies are in the process of restructuring to bundle media into three buckets; video, audio and text. Within the agencies, traditional out-of-home specialists, many of whom have been in their roles for decades, are being disintermediated while retaining their responsibilities for legacy outdoor and transit. The vast majority of out-of-home ad spending continues to be targeted to outdoor boards and transit, with reach and awareness as the primary planning objectives. Digital out-of-home is the fastest growing industry segment and incorporates mobile, video and a wide spectrum of place-based options, including cinema. More agencies and marketers are considering digital out-of-home options as part of their digital and video plans, requiring OOH media groups to fragment their sales efforts and making it difficult to integrate traditional objectives and budgets with digital and mobile innovative budgets. Radio and print media companies that are developing mobile, social and video content are navigating similar challenges.

Just last week, Clear Channel Outdoor announced Connect, a global interactive mobile advertising platform targeted to reach 175 million consumers monthly across 23 countries this year. Advertising panels on the company's pedestrian-accessible sites are being expanded into mobile launch pads, allowing consumers to access interactive content from advertisers via their smartphones. "Connect tags will be permanently attached to digital or static panels, with passers-by able to tap or scan their phone over Connect's NFC tag or QR code to receive more information and special offers."

Cinema advertising companies National Cinemedia and Screenvision are again hosting Upfront presentations this year, continuing a repositioning that began years ago from "outdoor" to television. The Digital Place-Based Advertising Association (DP-AA), headed by former cable TV executive Barry Frey, while continuing to target traditional OOH budgets, is targeting digital video and TV ad budgets.

It also makes forecasting difficult, as there is no longer a "traditional" out-of-home industry. MyersBizNet forecasts overall 5.8% growth in ad spending on combined traditional and digital out-of-home media in 2014, excluding mobile. Average annual growth in 2015 and 2016 is forecast at 4.5% with growth in 2017-2020 at 4.0% annually. Below are forecasts and data for three OOH categories: Out-of-Home, Cinema and Digital Place-Based Video.

MyersBizNet Media Business Report  2014                
Official Marketing / Advertising Spending Data 2010 - 2020                
UPDATED 01-06-14   Data reported  in 000,000                  
"Legacy" refers to revenues generated for traditional non-digital advertising and marketing spend within each category 2013 2014 2015 2016 2020
% Change $ % Change $ % Change $ % Change $ $
                   
Out-of-Home/Place-Based (excl. Cinema & D-OOH-V] 5.4% 7,643 4.8% 8,010 0.9% 8,085 5.8% 8,552 9,166
Legacy 4.5% 7,083 3.6% 7,338 -0.8% 7,279 4.2% 7,585 7,562
Digital 18.0% 560 20.0% 672 20.0% 806 20.0% 967 1,603
Cinema Advertising (All Platforms) 11.0% 799 7.0% 855 3.5% 885 6.0% 938 1,013
Legacy 11.0% 798 7.0% 854 3.5% 883 6.0% 936 1,011
Digital 15.0% 1 15.0% 1 15.0% 1 10.0% 2 2
Digial Place-Based Video Media (excl. cinema) 13.8% 955 12.6% 1,076 11.8% 1,203 16.0% 1,395 2,119
TOTAL - U.S. Only 6.6% $9,397 5.8% $9,940 2.3% $10,173 7.0% $10,885 $12,297
Source: MyersBizNet Media Business Report© copyright 2014                  
Detailed sources available at www.myersbiznet.com                  
                   

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