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| Out of Home | |
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| Out of Home | |
view for outdoor Magna sees recovery beginning in second-half 2009 Jul 14, 2009 Another forecaster is predicting a relatively short downturn for outdoor media. Magna’s 2009 U.S. media spending report, issued yesterday, suggests that out-of-home will be hit hard by the down economy during second quarter, like virtually all categories of media. But the sector will recover much more quickly than other areas of media, posting a compound annual growth rate of 3.6 percent through 2014, behind only online during that period. “Outdoor, among all the local media, is among the best positioned [for growth],” Brian Wieser, Magna’s director of global forecasting, told reporters on a teleconference yesterday. “The expansion of places one can advertise has contributed to the growth rate. Digital outdoor has an expanding network.” During second quarter, outdoor revenue plunged 18.9 percent, according to Magna, on par with first quarter, when revenue was off 18.1 percent, according to the Outdoor Advertising Association of America. But in the second half of the year, spending will pick up somewhat, and the year will end down 12.9 percent, at $6.1 billion, compared to an overall decline of 14.5 percent for all media. Outdoor spending will be about flat in 2010 but will see year-to-year growth from 2011 to 2014, when revenue will rebound to pre-recession levels of around $7 billion per year. Place-based media, such as sports stadium ads, digital advertising and cinema will all boost outdoor over the next few years, Wieser predicts. He says that this year there are 1,519 digital billboards, more than double the number just two years ago. That figure is expected to grow by about 100 per year as controversy over the safety risks of the digital displays dies down. Bus shelter display ads have risen to more than 44,000, while shopping malls have some 38,523 displays. Meanwhile, advertising in buses (more than 265,000) and subways and other rail systems (more than 219,000) has become commonplace. And cinema advertising was one of the few categories to see year-to-year growth in 2008. The Magna forecast echoes two other recent reports, from PricewaterhouseCoopers and ZenithOptimedia, suggesting that outdoor advertising will stabilize quicker than other media, some of which will continue to see year-to-year spending declines for at least the next two years.
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