Out-of-home Advertising - Digital Out of Home - DOOH

DOOH

Digital out-of-home refers to dynamic media distributed across placed-based networks in venues including, but not limited to: cafes, bars, restaurants, health clubs, colleges, arenas, gas stations, and public spaces. DOOH networks typically feature independently addressable screens, kiosks, jukeboxes and/or jumbotrons. DOOH media benefits location owners and advertisers alike in being able to engage customers and/or audiences and extend the reach and effectiveness of marketing messages. It is also referred to as Digital Signage.

The overall industry grew more than 15 percent last year(2010) to $2.1 billion, according to Patrick Quinn, CEO and founder of PQ Media, a Connecticut-based research and consulting firm. Quinn said gas station television is one of the largest and fastest growing segments of that category, based in part on its verifiable audience. With digital TVs in gas stations, nearly 52 million customers are getting snippets of weather, sports highlights, celebrity gossip and commercials with their gas each month, according to Nielsen. The weekly reach is actually larger than most of the prime-time TV shows. The largest company in the space is Gas Station TV with 27.5 million monthly viewers at more than 1,100 stations across the U.S., according to Nielsen. In addition to the large number of viewers, the audience profile of TVs at gas stations is unique. 100 percent are drivers. 76 percent are adults from age 18-49 with a median age of 40 and Median HHI $70k+. According to the Nielsen Intercept Studies, 89 percent of the consumers are engaged and watching TV at the gas station and 88 percent love watching every time they fuel because they have nothing else to do.

The reason that this category is growing so rapidly is because busy people are typically busy at home and with the introduction and acceptance of digital video recorders, it has diluted the frequency with which traditional television commercials are viewed. Every day more TV viewers are skipping past commercials with their DVRs which in turn has made out-of-home advertising all the more appealing. A Nielsen media research study in 2009 showed that 91 percent of DVR owners skipped commercials. As a result, traditional TV advertisers are hungry for an effective substitute, and digital out-of-home ads appear to be one of the solutions.

DOOH also includes stand-alone screens, kiosks, and interactive media found in public places. The availability of inexpensive LCD screens with built-in media players has opened the door for companies to add interactive video messages in Point of Purchase (POP) Displays. The displays allow consumers to get additional information at the moment of decision on a product or service. Growth in the DOOH industry has been increasing in 2009, with more POP manufacturers, advertisers, and content developers moving to digital.

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