German report predicting big jump in DOOH revenues

July 13, 2009 by Dave Haynes

A German research firm, Goldmedia, is marketing a new report on the state and future of digital signage in Europe, and hoping you have $2,560 burning a hole in your pocket.
Called Digital Signage in Europe: opportunities for digital out-of-home advertising, the key findings according to a press release summary as the following:
Digital out-of-home (DOOH) advertising revenues in Western Europe will quadruple over the next five years from Euro160m in 2007 to Euro626m by 2012. By 2012, DOOH share is expected to grow to approximately 10 per cent of total OOH ad revenues. 

Driven by the migration to digital and the incremental revenues generated from digital sites, the out-of-home sector will be the only traditional advertising media to post real revenue growth in the next five year. 

Thanks to the increasing affordability of digital displays, digital signage networks not only conquer brand new spaces for advertising (e.g. in-store point-of-sale advertising) but also upgrade static poster format sites in a growing number of locations (airports, stations, roadsides, etc.). 

Sales of displays and other hardware for digital signage generated revenues in the amount of approximately Euro4m in Western Europe in 2007. 

Lower maintenance costs and higher revenues, combined with reduced hardware costs are making a profitable business case out of upgrading many existing to digital, as well as creating new sites intended to reach audiences on the move. 

The added value of digital OOH formats over traditional OOH formats (superior impact of moving image, creative and dynamic copy, booking flexibility and scalability, etc) allows contractor to sell inventory at premium rates.
I haven’t seen the report, so bear that in mind. But apart from a guess-timate number on the value of the future ad market, these are findings most industry veterans can conjure over in a matter of moments. Pretty obvious, common sense stuff, but perhaps good for someone just coming into the space and needing an overview. 

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