Digital out-of-home media bucks sluggish advertising market
Source: Global Media Intelligence

London 21st August 2008: After initial success in the UK, the Netherlands and Switzerland within the past few years, digital out-of-home media – advertising on public displays – is now gaining momentum in other Western European countries according to the latest report produced in collaboration by media analysts Screen Digest (www.screendigest.com) and Goldmedia (www.goldmedia.com).
The report 'Digital Signage in Europe – The opportunities for digital out-of-home advertising' examines the emerging market for digital out-of-home media in Western Europe – advertising on digital displays installed at various locations, e.g. airports, stations, trains, supermarkets and other public places.

Today advertising on digital screens already accounts for 3.1 per cent of the total out-of-the-home media expenditure in Western Europe. By 2012 this share is expected to grow to approximately 10 per cent. This growth will happen despite the sluggish advertising market in traditional media, including TV and the press.

The market for digital out-of-home advertising has been driven by the decreasing costs of large flat panel displays. Digital displays allow for more creative and flexible advertising campaigns that can generate higher return on investment. The most attractive new digital sites, such as 'Digital Escalator Panels' and 'Cross Track Projection' recently installed in the London Underground network by CBS Outdoor UK can generate three to 10 times more revenue than static formats.

Dr. André Wiegand, Managing Director of Goldmedia concludes "Compared to the United States and Asia, digital out-of-home media is under-developed in Europe. Growth of this new advertising medium is currently hindered by the lack of standardized audience measurement, the small reach of the current screen networks, and a reluctance of media-buying agencies and advertisers to use it. With a growing number of screen networks across Europe and increasing experience with advertising on public displays, digital out-of-home media has the potential to play a substantial role in the media mix. By 2012 it will account for 10% of all out-of-home media spend."