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Digital Place-based Media Revenue Growth Rate Exceeds That of Overall U.S. Ad Industry

The Digital Place-based Advertising Association (DPAA) announced that growth rates for the industry sector remained strong in 2011, exceeding overall U.S. ad industry growth by a more than 17:1 margin.

Based on information collected by Miller, Kaplan, Arase from DPAA members and non-members, advertising revenue for the digital place-based sector grew by 14.2 percent in 2011 over 2010, more than 17 times the 0.8 percent growth rate for the U.S. ad industry overall, as reported by Kantar Media. Among all media types, growth for digital place-based was second only to that of syndication, which recorded a 15.4 percent gain.

Digital place-based media’s strong showing in 2011 boosted total industry revenues to an estimated $1.4 billion, including cinema advertising.

“2011 was a challenging year across the media landscape, but it was also a year that further solidified digital place-based 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. “With the advent of new measurement tools and growing recognition among agencies that place-based media is an effective tool to influence consumer behavior, we expect to see a continuation of strong growth in 2012.”

Susan Danaher, president and CEO of the New York-based DPAA, added, “Digital place-based media engages consumers at the right time, in the right place and in the right mindset. In today’s fast-paced world, it’s easy to see why the ability to reach on-the-go consumers in contextually relevant settings resonates more powerfully than ever among advertisers.”

Advertising Revenue Growth

Media Percent Growth (2011 vs. 2010)
Syndicated TV +15.4
Digital Place-based +14.2
Cable TV +7.7
Outdoor +6.5
Network Radio +2.7
Internet +0.4
National Magazine 0.0
Network TV -2.0
National Newspapers -3.6
Local Newspapers -3.8
Spot TV -4.5
Spot Radio -5.4
Total U.S. Advertising +0.8 percent

Sources: Miller, Kaplan, Arase for digital place-based media, and Kantar Media for all other media

This column was reprinted with permission from the Digital Signage Connection and originally appeared here.

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