Outdoor advertising has largely escaped the decline experienced by other traditional media
New York, NY (PRWEB) April 02, 2015
IBISWorld expects that revenue for the Billboard and Outdoor Advertising industry will increase in the five years to 2015, despite heightened volatility in consumer spending and corporate profit. In particular, volatility in corporate profit forced many companies to reduce costs, including marketing expenditures, which are typically among the first budget cuts to be made. According to IBISWorld Industry Anaylst Omar Khedr, “the resulting increase in billboard vacancy rates drove up price competition in the industry, preventing a strong expansion in revenue and profit over the period.”
Despite the industry's recent struggles, outdoor advertising has largely escaped the decline experienced by other 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 is easier than ever. However, there is also now more media content than ever, and given the millions of websites and hundreds of television channels available at a moment's notice, reaching a mass audience has become more difficult. This fragmentation of demographic markets has given the industry 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 in 2015.
Nonetheless, the technological changes of the past decade have not been lost on the industry, as more digital billboards and networks have been acquired by outdoor advertising companies. “Digital signs are superior to traditional billboards in that the content can be changed instantly and targeted at different audiences at different times of the day,” says Khedr. 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. In the five years to 2020, industry revenue is expected to increase. During that time, industry profit is expected to increase slightly in 2015. The adoption of digital signage has also fuelled industry consolidation among larger players seeking 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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