STAMFORD, CT: Global digital out-of-home (DOOH) advertising revenues are expected to increase to 11.3% in 2014, buoyed by an improved global economic outlook and increased adspend in certain categories, a new report has forecast.
According to research firm PQ Media
, this will be an improvement on last year and it expects strong growth in the US this year on the back of increased adspend on healthcare and political campaigns.
Global DOOH ad revenues increased 9.3% to $8.9bn in 2013, the report found, with Asia-Pacific accounting for $3.83bn and the US, the world's largest national market, for $2.37bn. China followed with revenues of $1.87bn.
US DOOH media revenues increased 8.7% in 2013 and were boosted by spending on healthcare, especially related to the Affordable Care Act.
Asia-Pacific performed well because of a strong rebound in Japan and "surging growth" of 23.6% in Australia, PQ Media said, which also noted that Brazil recorded the highest worldwide growth of 41.9% because of digital investment ahead of its hosting of the FIFA World Cup.
Although last year's worldwide revenue growth of 9.3% was lower than in previous years, the report suggested that consumers are becoming more open to DOOH.
Consumer exposure to DOOH media grew 7.2% to an average of 14 minutes per week in 2013 and it is expected to grow by a further 9.5% in 2014.
PQ Media said consumer exposure will be driven by higher engagement with DOOH media deployed for the World Cup and the Winter Olympics in Sochi, Russia, but also by expansion of existing DOOH media on traffic-related sites in large cities.
"Global digital out-of-home media revenues are on pace for accelerated 11% growth in 2014 following three consecutive years of slowing expansion," the report said.
"A dynamic combination of sporting mega-events, increased adspend on healthcare and transit video nets, and a streaking DOOH sector in Australia are expected to fuel the industry's best performance since 2010."
Data sourced from PQ Media; additional content by Warc