While major, and mature markets like Europe, United States and Japan, take a pause, emerging markets like Asia-Pacific, and Middle East and Africa are expected to rise to drive future growth, according to Outdoor Advertising: A Global Strategic Business Report by Global Industry Analysts, Inc (GIA).
With a growth potential of 12 per cent, and 10 per cent respectively, Asia-Pacific, and Middle East & Africa represent optimum regions for finding market opportunities.
According to GIA’s research, modern urban lifestyles exhibit a tendency towards greater indulgence in outdoor activities. In addition, people spend a greater portion of their time outdoors traveling.
The rapidly growing popularity of digital billboards, and their ability to air attractive full motion video, and visually informative graphic presentations, is helping advertisers communicate effectively with mass audiences.
Technology advancements are leading to innovations in signage, and outdoor displays such as Hi-fi displays, plasma screens, magicink, LED, digital displays and electronic kiosks with interactive touch-sensitive-screens.
In addition, continuous innovations are also helping expand outdoor advertising spaces.
Marketers today wield the flexibility to display their outdoor advertisements in a variety of public places like point-of-purchase, newsstands, bus stops, washrooms, airports, subways and public transportation.
This is directly translating into a marked increase in out-of-home advertising expenditures and conversely a rise in the number of outdoor advertising contracts signed.
Digital printing, on the other hand, has emerged to become a major driver propelling growth in outdoor advertising, since it extends advertisers the agility to quickly and cost-efficiently change outdoor ads.
All of these factors, among several others, lay a strong foundation for future growth, by strengthening the perceived effectiveness of the reach, frequency, and cost efficiency of outdoor advertising.
In terms of modes of outdoor advertising, world billboard advertising market, the largest mode of outdoor advertising, is expected to increase by USD2.85bn between 2007 and 2010.
According to the GIA report, Europe dominates this market with a 31 per cent share, while Asia-Pacific turbocharges global growth with a CAGR of 12.3 per cent.
Transit advertising market represents the fastest growing mode of outdoor advertising flaunting the potential to reach USD7.14bn by the year 2010.
Street furniture advertising market in Middle East and Africa is expected to reach USD64.05m by the year 2010.
By region, the world outdoor advertising market is dominated by Europe.
Growth in Europe is fashioned by the highly lucrative Russian market, which is forecast to grow at a robust double-digit CAGR of 30.2 per cent over the analysis period.
Outdoor advertising expenditures in the two other fast growing European markets, Hungary, and Norway together, are expected to rise by USD119.9m between the period 2007 to 2010.
In Asia-Pacific, unbridled growth is forecast in Indonesia, Thailand, and China. Together, these three regional markets are expected to corner close to 65 per cent of the total expenditures on outdoor advertising in Asia, by 2010.
In Middle East, UAE, and Turkey are expected to generate the highest growth, with expenditures in both these markets projected to reach USD214.03m by 2010.
Leading global and regional players operating in the industry include Clear Channel Outdoor, JCDecaux Group, CBS Outdoor, Lamar Advertising Company, Titan Outdoor Limited, Van Wagner Communications, Planar Control Room and Digital Signage, EPAMEDIA, MarketForward, Omnivex Corporation, Primedia Outdoor Pty Ltd and Clear Media Limited, among others.
Outdoor Advertising: A Global Strategic Business Report provides a comprehensive review of media technology trends, advertising practices, market drivers, issues, and challenges.
Richly annotated with authoritative, and unbiased commentaries, and hard-to-find statistical facts, the report provides unequivocal views on future potential while throwing light on the prevailing climate in key market segments.
Modes of outdoor advertising analysed in the report include Billboards, Transit, Street Furniture, and Alternate forms.
Latent demand patterns in all market segments are quantified across major geographic market verticals including United States, Canada, Japan, Austria, Belgium, France, Germany, Greece, Netherlands, Norway, Poland, Spain, Sweden, Switzerland, United Kingdom, Australia, Hong Kong, India, Philippines, Singapore, South Korea, Argentina, Brazil, Chile, Venezuela, Peru, Israel, Kuwait, and South Africa, among others.
Also provided in the report is an enumeration of recent mergers, acquisitions, and other strategic industry activities.
