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Out-of-Home Networks to Generate $1.2B Ad Spend in ‘06

As digital technology advances, the outdoor advertising industry reaps the benefits.

Digital out-of-home networks are growing at a rate of about 10 new networks per month, according to a new report from Profitable Channels, MediaPost writes. The report, which estimates that about 700 digital out-of-home networks have launched since 2002, says that the networks will account for $1.2 billion in national ad spending this year.

That, the article points out, gives the medium the strength - at least in terms of ad spending - of a major TV network daypart.

These networks exist in venues such as high-rise elevators, public rest rooms, gas station pumps and stores such as Wal-Mart. The growth has spurred major media buying agencies to develop “shopper media” divisions within their out-of-home operations.

Leo Kivijarv, vp-research at PQ Media, says it is one of the smallest segments, but is also one of the fastest growing. PQ Media plans to publish a report on digital out-of-home as well, but will group digital outdoor billboards into the category.

The category now has its own trade association, The Out-of-Home Video Advertising Bureau (OHVAB), which is attempting to bring some structure to the marketplace.