STAMFORD: Digital out-of-home media will continue to enjoy growth around the world in 2009 and 2010, but the rate of expansion will slow when compared with the last five years, a new forecast from PQ Media, the research firm, reports.
The company has predicted that the medium's total revenues will climb to $2.47 billion (€1.6bn; £1.5bn) in the US in 2009, up by 2% year-on-year.
Within this, digital billboards will be the fastest-growing individual channel, with an uptick of 9.1%, to $502m, in 2009, and of 13.2% in 2010, having enjoyed a CAGR of 31.4% over the last half decade.
Video ad networks will deliver $1.4bn in sales in America this year, up 1.2%, and see figures improve by 5.7% during the proceeding 12 month, although this is down from the level of 17.2% per annum witnessed in the five years to 2009.
Looking forward, PQ Media suggested that the US will record a compound annual growth rate of 9.4% for the period from 2010 to 2014.
Globally, digital outdoor advertising expenditure will also pick up by 4.7%, to $6.68bn, in 2009, with Asia Pacific and Latin America among the regions set to drive this positive trend.
More specifically, the former of these two areas will generate an expansion of 10.7%, to $2.18bn, this year, bettering the increase of 8.8% in 2008.
Patrick Quinn, president/ceo of PQ Media, said "our research indicates three distinct phases in the emergence of successful new media – gold rush, shakeout and breakout – and the digital out-of-home business, especially video networks, are in the second phase and will likely be well into 2010."
"This is actually a good thing as it will defragment the industry and create a landscape of strong operators offering better scale, more relevant content and cohesive metrics."
"This is, of course, if the industry can weather strong economic headwinds, technological shifts and changing consumer behaviors."
Data sourced from PQ Media; additional content by Warc staff