New York, NY (PRWEB) April 10, 2014
IBISWorld estimates that revenue for the Billboard and Outdoor Advertising industry will increase at an average annual rate of 2.5% per year to $1.0 billion in the five years to 2014. This growth comes in spite of a 2.7% decline in 2009, when a fall in consumer spending dragged down corporate profit. This factor forced many companies to reduce costs, including marketing expenditures, which are typically among the first budget cuts to be made. The resulting increase in billboard vacancy rates drove up price competition, dampening revenue and profit during the recession. Although the Billboard and Outdoor Advertising industry rebounded strongly in 2010, revenue volatility remained high due largely to economic uncertainty.
According to IBISWorld Industry Analyst Omar Khedr, “Despite the industry's recent struggles, outdoor advertising has largely escaped the decline of traditional media, such as newspapers, given its ability to capture the attention of a broad market.” The internet has ushered in an age in which reaching a specific demographic market has become easier than ever. However, there is also now more media content than ever for people to consume. Given the millions of websites and hundreds of television channels that are available at a moment's notice, reaching a mass audience has become more difficult. This fragmentation of demographic markets has given the industry's service stability in that its proportion of overall advertising expenditure has remained about the same over the past five years. As such, industry revenue is expected to increase by 4.8% in 2014.
“Nonetheless, the technological changes of the past decade have not been lost on the industry, as more digital billboards and networks are acquired,” says Khedr. Digital signs are superior to traditional billboards in that the content can be changed instantly and marketed to different audiences for different times of the day. Furthermore, digital billboards offer greater visibility and can feature more than one advertiser at a time. As such, operators are generally able to generate higher returns using digital billboards. The adoption of digital signage has also fuelled industry consolidation among larger players in order to increase the size of their digital networks.
For more information, visit IBISWorld’s Billboard and Outdoor Advertising in Canada industry report page.
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IBISWorld industry Report Key Topics
The Billboard and Outdoor Advertising industry creates and designs advertising materials for public display, including printed, painted or electronic displays. Operators may place the displays on billboards or panels as well as on or within transit vehicles, shopping malls, retail stores and other display structures or sites.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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