Good News for Outdoor Advertising: Growth in 2007 and Acceptance of Digital Billboards

March 3rd, 2008 Nurlan Urazbaev

Most of the OAAA’s newsletter this week was dedicated to digital billboards. OAAA president and CEO Nancy Fletcher writes that “Digital outdoor can provide opportunities for industry growth little imagined only a decade ago.”

The Federal Highway Administration ruling last fall that digital billboards were ‘permissible’ unleashed a flurry of new installations, pilots, studies and local regulations. Nancy Fletcher summed up the recent developments in the field as follows:

“People Like Digital
Consumers and advertisers are strong advocates of digital outdoor. Arbitron just released a report saying digital billboards are noticed by most drivers and appreciated as attractive and useful, particularly with younger (and harder to reach) audiences. See page three for Arbitron highlights or download a copy at www.digitalooh.org later this week.

Traffic Safety
Separate research conducted by Tantala Associates and Virginia Tech Transportation Institute (VTTI) last year in Cleveland, OH, showed digital billboards are compatible with traffic safety. Digital billboards are safety neutral to motorists, while accident data does not link digital billboards to accidents. Analysis of accident data by state officials reached the same conclusion.

Expect more research. The Transportation Research Board (TRB) has held a workshop to discuss future needs of traffic safety. The Federal Highway Administration (FHWA) has awarded a contract to SAIC to develop a research plan concerning digital safety; the first phase is due for completion in June 2008. In addition, state highway officials (AASHTO) have initiated a worldwide literature search of traffic safety studies affecting signs that will be released this summer.

The National Alliance of Highway Beautification Agencies (NAHBA) is considering
additional research following the results of these earlier studies.

Digital Brightness is Controlled
A primary issue affecting digital billboard deployment concerns brightness and lighting levels. OAAA commissioned Dr. Ian Lewin, a principal at Lighting Sciences in Scottsdale, AZ, to recommend standards designed to minimize the risk of glare or unreasonable driver distraction. The resulting criteria followed the lighting standards established by the Illuminating Engineering Society of North America (IESNA). Details of these requirements will be released this week.

Digital is Regulated
Steadily, state statutes and regulations are being established to govern the use of changeable message signage. To date, 38 states allow digital technology and
five others allow tri-action devices. Only three states (ND, NH, and WY) are left to enable some kind of changeable message signs. While the state regulatory picture is encouraging, the real action today exists at the local level, where a number of communities are considering ordinances, regulations, and applications for digital outdoor displays. As with every regulatory issue, a well-prepared and properly informed industry can best educate policy makers about the benefits of digital outdoor.

Digital is Important The ability to change messages in real time is a benefit to advertisers and a vital public service. Millions of motorists have seen presidential primary results via digital billboards. The FBI is using digital billboards to find fugitives, while AMBER Alerts help locate abducted children.”

Overall,  the Outdoor advertising seems to be in much better shape than TV, radio and print. According to the OAAA’s newsletter - total revenue for the outdoor advertising industry in 2007 grew 7% compared to the previous year. Total revenue for the industry grew 6% in the 4th quarter compared to the same period in 2006. The revenue figures are collected in aggregate each month by certified public accountants Miller, Kaplan, Arase & Co., LLP, and used by the Outdoor Advertising Association of America, in combination with other sources, to release industry revenue information on a quarterly basis. Revenue estimates include billboard, street furniture, transit, and alternative outdoor media spending.

I would still like to see the numbers for digital billboards separately and I would assume that those would reflect a much higher growth than that of the whole Outdoor segment. If anyone has access to the digital billboard stats and would like to share them, feel free to post them in a comment here…

Entry Filed under: The Big Picture, Digital Signage Evolution, Uncategorized