eMarketer forecasting $1 billion growth in digital out-of-home

Market researcher eMarketer is expecting big growth, second only to online, in ad spend increases over the next four years, and the report’s author says a big driver is the digital piece.

“Outdoor advertising is bucking the trend,” says Ben Macklin, eMarketer Senior Analyst and author of the new report, Outdoor Advertising: A New Look. “While other traditional advertising sectors are struggling to adapt to increasingly fragmented audiences and changing media consumption patterns, the out-of-home advertising sector is actually reaping the benefits of the evolving media landscape.”Unlike TV or radio, out-of-home advertising is immune to channel or Web surfing and digital and video technologies are making the medium more compelling and effective.

As an example of the opportunities that new technologies are opening up, out-of-home video advertising networks will comprise the largest component of what is described as the “alternative” out-of-home advertising sector.

“Out-of-home video, also known as narrowcasting, is video content and advertising distributed to captive audiences in such places as retail outlets, transit vehicles, office buildings, shopping malls, theatres, bars and restaurants, gas stations, hotels and gyms,” says Mr. Macklin.

eMarketer forecasts that out-of-home video advertising spending in the US will total $2.25 billion in 2011, up from $1.26 billion in 2007.

The falling costs of flat panel LCDs, combined with the emergence of IP and wireless Internet technology are driving the out-of-home video advertising market.

The full report, Outdoor Advertising: A New Look, is $695 if you want the whole thing.

Because I’ve been a good boy this year, kinda sorta, and I just helped plug this thing because I’m swell, maybe I’ll find a copy under my tree, or in my Inbox???

UPDATE – Bill Gerba does a nice job of breaking these numbers down on his blog

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