Adcentricity develops and releases spending forecast for next nine months

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Drool, Britannia? Is the UK Failing the Cloud?

By Roger Strukhoff

Richard Davies wrote: The UK has a good crop of technology pioneers in cloud computing - for example ElasticHosts, FlexiScale, Flexiant, OnApp - and also some strong government initiatives such as G-Cloud. We will have to see whether this kind of technical leadership converts into swift mass-market adoption or not.

Jan. 8, 2012 11:38 AM EST

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Adcentricity develops and releases spending forecast for next nine months

By: Dave Haynes

Oct. 14, 2009 04:07 PM

My "friends" at Adcentricity were too busy working or some other such nonsense to drop everything and send me a copy of the look-ahead report the company has has done on the DOOH sector. That's FINE, just fine, because Marketing Charts got a copy of the free report, pulled it apart and provided some charts.

The network aggregator and media strategy firm has generated research that suggests 42% of the agency and brand marketing people who have dough to spend plan to spend more of it on DOOH through the end of this year and on to next summer. Total DOOH spending is on target to hit PQ Media's forecast of $4.53 billion by 2013, or 44% of all OOH spending.

Research conducted to compile Adcentricity’s “2010 Digital Out-of-Home Outlook & Planning Guide,” also revealed that digital out-of-home advertising currently reaches two-thirds (67%) of US residents ages 18+ each month and delivers a fairly representative cross-section of consumers.

Of those who recall seeing digital out-of-home displays in the past month, 76% noticed them at multiple venues, Adcentricity said.

Specific venue details:

- Digital video screens in retail locations (including grocery stores, large retailer/department stores, drug stores, shopping malls or convenience stores) reach more than half (53%) of American adults in an average month.

- Digital out-of-home displays at gas stations and movie theaters each reach more than 20% of US adults per month.

Despite DOOH media’s growth potential and its ability to offer hyper-targeting opportunities, Adcentricity noted in the report that there are significant challenges in creating large, scalable campaigns because of the complex landscape of ever-changing networks, confusion among advertisers and a complicated matrix of environmental considerations.

Additional findings from the report:

Digital out-of-home currently has approximately 112 significant network operators (many running multiple networks) in the US and approximately 45 within Canada who accept third-party advertising.

Collectively, there are active media screens in more than 70 venue types each with unique audience and media characteristics to understand.

The landscape will continue to aggressively grow in capacity and market coverage. More than one-third (38%) of active digital OOH network operators are planning capital investments of between $1M-$10M to expand their venue and screen capacity in the next 12 months. Just less than 20% of them plan on expanding their screen count to more than 1,000 each.

Though digital OOH advertising continues to grow, figures from the Outdoor Advertising Association of America for Q209 revealed that out-of-home revenue declined 18% for the quarter, from $2.2 billion in Q208 to $1.82 billion. Still, the organization believes that outdoor advertising is in “fine shape” is likely to recover from the recession more quickly than other forms of media.

You can go here and fill out a form and maybe they will send you the report.

The report is interesting on a few counts. If we go with the numbers that there are 157 significant network operators in North America, that means there are perhaps more software platforms out there than significant networks, and based on on how many networks some companies claim to have, there are many, many phantom networks.

The capital investment numbers are encouraging, but ask anyone who's sold technology in this space how much faith they put in rollout and spending forecasts from network operators, particularly the early stage ones who haven't been beaten up yet by experience.

Read the original blog entry...

About Dave Haynes
Dave Haynes is one of the most seasoned professionals in the still young digital signage industry, with deep experience in everything from business development and sales to technical operations, product development and start-up strategy and fundraising. These days he is extensively working on business development and consulting for an industry big on enthusiasm but still a lot short of experience and know-how.