Digital OOH & Investment
Digital OOH revenues will account for a quarter of total OOH revenues by 2020 according to a new report from Kinetic Worldwide.
Digital screens in established Out of Home locations will double over the coming decade; significant impetus will be given to some roadside and bus 6 sheets after 2015.
Digital technology will grow Out of Home's (OOH) total share of media:
Total OOH media spend to see continued growth from £880m (2010) to £1.15bn by 2020. Digital revenues will reach almost £260m accounting for approximately a quarter of total OOH spend.
The total OOH site universe will grow with digital adding additional sectors: Kinetic's analysis reveals that digital sites will not simply replace static posters, but will create additional levels of consumer reach. Digital poster networks will be visible across 30 cities nationally with almost 110,000 screens in use. Aggressive digital expansion expected for 6 sheets and bus shelters after 2015. Only a limited rationalisation of static posters is expected.
The dual opportunity of digital OOH to offer roadside and environment communication opportunities is based around a number of high value locations. This model has attracted new investors along with established media owners and combines large audience reach with high quality delivery; it therefore commands a premium.
However, this sector remains a niche and there is a clear need to attract more advertising that both uses the flexibility of digital formats and acts in tandem with traditional OOH.
The nature of digital OOH is in itself transformational. Significant national opportunities exist and will continue to grow across numerous environments as development becomes more cost-effective and more attractive to landlords and local authorities.
Agency opinion is that digital OOH can act effectively in enhancing simple messaging, with dramatic effects that enhance the medium in terms of reach, impact, relevance and interactivity.
