Advertising spending on digital place-based video networks in North America is rounding the level of $1 billion annually with a compound annual growth rate of about 15%; that is 16 times that of the North American economy. 2011 ad spending, including cinema advertising, were an estimated $1.4 billion, according to comprehensive data compiled, analyzed and published by PQ Media, which also includes the contribution of Miller, Kaplan, Arase data.

Digital place-based media offers well-measured, high audience reach and demographic targeting in places where people shop, gather, transit, work and study. According to the 2010 Arbitron Digital Video Display Study, 70% of teen and adult U.S. residents view digital video displays monthly, an estimated 181 million people.

The future appears bright for digital place-based and location-based dynamic media as its use is visibly maturing. Value is being regularly proven in a range of applications. Standards are emerging. Perplexing elements are becoming clearer. Supply is stable and consolidation, aggregation and merger are occurring to enable economies of scale and operational efficiencies.

All of the industry numbers, including the shift of ad spending and the corporate use of place-based dynamic signage point toward increase.

DPAA has reported that 94.2% of agency survey respondents say that they would include digital place-based media in their plans. Just over 40% of planners said that they will fund their digital place-based (DPb) media plans through digital and online budgets, an increase of 75% over the 22.9% in a previous similar survey.

The $1 billion figure is forecasted to be “on the books” in fall 2012 as the network operators, agencies and advertisers, associations, event producers, publishers, suppliers and industry analysts and educators to which this achievement is collectively credited, offer industry-building to new plateaus.

In celebration and to accelerate this achievement, the first-ever directory of the 300+ North American digital place-based networks will be published. Networks can list themselves online (free and enhanced listing) at https://secure.newbay-media.com/avnetwork/digitalplace-based/.

The 100-page printed directory will be distributed widely to advertisers, agencies and investors starting with several events that have been annual contributors to achieving this milestone. These include:  

• On Oct. 16, 2012, the Digital Place-based Advertising Association (DPAA) Summit will gather 300+ agency and brand executives and network operators.
• The 7th annual Strategy Institute Digital Signage Investor Conference in New York on October 17-18 will include presentation by industry veterans addressing subjects such as advertising outlook, effectiveness of the medium, large network outlooks, as well as merger, acquisition, consolidation and recapitalization activities and structures.
• Customer Engagement Technology World in New York Nov. 7-8 focuses on “owned” media in the “paid-Owned-Earned” media model.

Advertisers and networks benefit from the recordings of webinar presentations produced and moderated by BUNN available online include agencies such as Integer, StarComWW, Kinetic, BillupsWW and Posterscope (which collectively account for almost half of digital place-based ad placement) sharing their advise to ad-based network operators. Companies sponsoring this year-long webinar program include NEC VUKUNET, LG Electronics, Intel, Synnex, Dot-2-Dot Communications (Scala) and BUNN. The monthly webinar series will offer additional education for Digital Place-based Network operators in areas such as investment attraction and operating efficiencies.

While serving the needs for “paid” messaging, these network operators are ideally suited to serve the needs of “owned” media by organizations seeking shopper, patron, patron, staff and student communications and those wishing greater “earned” media success.

The power of “owned” media in the “paid-owned-earned” media mix is outlined in a paper by Lyle Bunn. It describing convergence in the “paid-owned-earned” media model and how dynamic place-based signage owned by the retailer or brand leverages “paid” messaging and activates “earned” media for viewer engagement. This and a June 2012 paper with an outlook on the sector are available at http://www.lylebunn.com/Pages/aboutus.aspx.

The online “SPEED” digital signage training program available at www.DSEG.org offers useful background to those wishing to enjoy best advantage through the business and project elements of the medium.


Lyle Bunn (Ph.D. Hon) is an analyst, advisor and educator in North America’s Dynamic Media industry. www.LyleBunn.com.

For the complete article, see http://www.lylebunn.com/Pages/aboutus.aspx