DPAA reports fast ad revenue growth in sector in first half of 2011

September 28, 2011 by Dave Haynes

The Digital Place-based Advertising Association says the Digital OOH sector is growing at five times the rate of the overall ad industry in the United States, based on sales figures coming in from members and non-members.

Based on information collected by Miller, Kaplan, Arase from DPAA members and non-members, says a release today, advertising revenue for the digital place-based sector grew by 16.1% for the first six months of 2011 over the same period last year, slightly more than five times the 3.2% growth rate for the U.S. ad industry overall, as reported recently by Kantar Media.

Among all media types, growth for digital place-based was second only to that of syndicated TV, which recorded an 18.5% gain.

Digital place-based media’s strong showing during the first half of 2011 follows a 25% growth rate for the sector – to an estimated $1.1 billion – in 2010.

“In an economic environment where every single ad dollar must work double-time, digital place-based is emerging as a highly desired media choice because of its ability to engage consumers on the go,” said Mike DiFranza, president of Captivate Network and DPAA chairman. “More and more advertisers recognize digital place-based as a highly effective medium that connects with the consumer who cannot easily be reached with television.”

Susan Danaher, president of the DPAA, said, “In today’s increasingly digitally convergent marketplace, context matters more than ever. We are currently engaged in a tour among agencies and clients focusing on unlocking the opportunities for brands to reach consumers at the right time, the right place and in the right mindset to receive commercial messages. The extremely positive reception we are receiving at our presentations speaks to the competitive contextual advantage that digital place-based media has over many other traditional forms and is at the root of the growth levels the sector enjoys.”

I don’t spend my days, thank God, sorting through endless reports about ad spend actuals and forecasts, so it beats me whether this syncs up with what other research is out there. I know newspapers were still a basket-case, but network TV???

If ad spend reports wind your watch, you can see a synopsis of the Kantar Media report, used as a foundation for the DPAA analysis, here.

  1. Kevin Golding says:

    There is nothing I would like to see more than the continued strong growth of the Digital-Out-of-Home sector. However, to take the results of one study and compare to the results of a different study utilizing different metrics and methodologies in order to demonstrate growth (right or wrong) is foolish. The DPAA should know better.

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