Outdoor Advertising Is On The Move: Literally

While some traditional media such as TV, radio, newspapers and magazines have struggled for growth over the last several years, one age-old icon of the American advertising industry is seeing healthy increases: outdoor advertising. According to a recent Outdoor Advertising Association of America (OAAA) press release, outdoor advertising growth in 2006 should finish out the year up over 8 percent. That represents second place in advertising revenue increases for all categories and is exceeded only by the surge in Internet advertising.

Part of the healthy expansion of outdoor advertising is due to technology that has resulted in a big growth in digital billboards. These billboards electronically change the message every six or eight seconds. As stated by a New York Times article yesterday, digital billboards are expected to grow from 400 today to over 4000 by 2010.

While the images themselves do not move when they are displayed, the mere fact there is a revolving change better attracts (or distracts) drivers. Advertisers like the format because it increases attention to their message. Billboard companies like the new digital boards because it greatly increases their revenue per location.

Outdoor advertising is protected to a certain extent from the pressures that other traditional media faces from the explosion of media channels (Web and non-Web) in the home or office. Drivers are forced to keep their eyes on the road to drive, so outdoor advertising is much more difficult to ignore or avoid. Also, through the use of the Web and other technologies, the outdoor advertising industry, will continue to make billboards more riveting in the future. Before long, we may see LCD based screens that present moving messages and can be changed instantaneously via the Internet.

All this begs the questions: How much distraction is safe? How much do these digital boards contribute to urban blight? Imagine driving down the road with a gauntlet of towering JumboTron or TV-type message vying for your attention. Add that scenario to the increasing distractions that are already present in vehicles—cell phones, nav systems, DVD players, sophisticated music systems, etc.—and is easy to understand why some experts are concerned with driver safety.

In the absence of legislation limiting outdoor advertising’s technological implementations, you should expect more expansion ahead for the outdoor advertising industry.