The future of out-of-home advertising is rosy, and digital.
ROADSIDE billboards, posters on buses and subway escalators, ads in airport terminalsa type of publicity known as out-of-home advertisingused to be the dull end of the industry. No more. The falling price and improving quality of flat-screen displays mean that static posters printed on paper are being replaced by snazzy digital commercials with moving pictures, sound and sometimes interactive features. As some advertising media, especially newspapers, see their audiences fade, streets, airports and other public spaces are becoming crowded with more potential viewers than ever, as people continue moving to cities and travel more.
MagnaGlobal, a media researcher, predicts that worldwide spending on out-of-home advertising will expand by 8.3% in 2011 to about $26.4 billion, faster growth than that seen for other non-internet forms of advertising. Spending on digital billboards and posters is expected to double in the next five years, to $5.2 billion. William Eccleshare, who runs the international operations of Clear Channel, an American firm which is one of the largest out-of-home ad companies, thinks that in some countries more than 90% of its business will be digital by the decades end.
His arch-rival, Jean-Charles Decaux, the boss of Frances JCDecaux, agrees that there will be a significant switch to digital, but mainly inside airports, railway stations, shopping malls and other controlled environments. Ads in bus shelters and other outdoor spots at risk of vandalism will take a lot longer to move away from paper, Mr Decaux thinks. Digital displays already account for about one-quarter of his companys sales in transport hubs, but for less than 5% in street furniture and billboards.